The latest NAB Behavioural Special Insight Report shows renovation costs are rising, while increased supply is creating positive sentiment for buyers.
According to data from 2,000 respondents, one in two Australians renovating their home believe it’s harder to complete in the past three months, with 60% signalling it had become more expensive.
NAB said 28% of Australians think now is a good time to get a mortgage and 13% of Australians intend to buy a home in the next 12 months, the same as the previous quarter.
NAB executive of home ownership Andy Kerr said house price growth could ease in 2022 as more supply hits the market.
"Australians remain positive about the property market, with a quarter saying now is a good time to buy a home," Mr Kerr said.
"This is in line with last quarter, a time when it became clear price growth was slowing.
"We currently expect more subdued property price growth in 2022, with gains of around 3% compared to 21% in 2021.
"However, the market remains competitive and for many Australians buying a home can be a daunting experience."
See Also: Could super be used as collateral to buy a house?
2021 set some buyers back 10 years
According to affordable housing body PowerHousing Australia, price increases from one year can conservatively set Australians with a budget back up to 10 years in loan repayments.
CEO of PowerHousing Australia Nicholas Proud said those who used 'The Bank of Mum and Dad' to get a foot on the property ladder could experience stress to meet repayments down the road when interest rates rise.
"With the RBNZ signalling in the last week a 2.4% rise in cash rate by 2024, and Australia poised to follow, the payback period only gets longer," he said.
"Rents have never been so high and the Reserve Bank raising of interest rates across 2022 through to 2024 will only see a flow through to rents continuing to rise causing more pain for younger low-income renters.
“Whilst a paper gain may be there today, it has only pushed younger generations and low income earners further out of reach."
Advertisement
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $2,408 | Principal & Interest | Variable | $0 | $530 | 70% | Featured Online ExclusiveUp To $4K Cashback |
| |||||||||
5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% | Featured Apply In Minutes |
| |||||||||
6.14% p.a. | 6.16% p.a. | $2,434 | Principal & Interest | Variable | $0 | $250 | 60% | Featured Unlimited Redraws |
| |||||||||
6.14% p.a. | 6.39% p.a. | $2,434 | Principal & Interest | Variable | $248 | $350 | 70% | Flexible Home Loan Options |
|
Image by Steven Su via Unsplash
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Denise Raward
Harrison Astbury
Harry O'Sullivan
