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Date Published : Wednesday, August 06, 2008
Over 90 per cent of first time buyers are cutting back on their lifestyle or downsizing their property expectations in order to secure their first home, according to a new survey.
The poll by Mortgage Choice found that 75 per cent of first-time buyers have cut back on personal spending, while 20 per cent said they consider buying a home in a "non-ideal location" in order to become a property owner, news.com.au reports.
Mortgage Choice spokesperson Kristy Sheppard said: "There's definitely a shift towards people downsizing, in terms of their ideal location as well as the type of home they want to buy.
"Many were looking to move further out of the city to achieve a house, or they were moving to a non-ideal location."
The survey also found that the age of people taking out their first home loan is edging upwards, indicating that some are concentrating on other "life goals" such as developing their career or going travelling, before trying to climb onto the property ladder.
According to the survey, 37 per cent of people looking to buy their first home in the next five years will be over 40, up from 28 per cent 12 months ago.
The site said that some are putting off home ownership until later in life because they are worried that rising interest rates could leave them unable to meet mortgage repayments.
According to the Australian Bureau of Statistics, the number of properties being bought by first-time buyers in the decade to 2005-06 fell to 15 per cent from its previous level of 23 per cent.
The news site previously reported that the average value of a 30-year home loan is now $341,000.
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