Next home buyers beating out first-timers in savings
May 28, 2014 / Written by Rich Harvey
It looks like those buying investment property in Sydney and other areas are putting a few extra coins in their piggy banks these days.
Commonwealth Bank recently reported that for the first time in four years, next home buyers are saving more money than first-time buyers.
The CBA Home Finance Index survey found that next home buyers are saving an average of 16.6 per cent of their take home income, up from 12.3 per cent the previous year.
"The strong increase in next time buyers savings since March 2013 is evidence this group will continue to play a major role in the residential property market," said Commonwealth Bank General Manager of Home Loans Clive van Horen.
"This discerning customer segment will increasingly market leading guidance, advice and products from home loan providers like CommBank as they seek to invest in their next property."
Unsurprisingly, the majority of next home buyers (58 per cent) were in the market for an investment property. Forty-two per cent wanted to change or upgrade their current home.
Of course, finding an affordable deal can be easier said than done for prospective investors. The survey also found that three in five Australians (58.9) per cent believe residential property prices will rise in the approaching quarter, up from 49.8 per cent since March 2013.
While price growth is starting to cool slightly, utilising the right help remains the best way to streamline the home buying process and make obtaining a fair deal more likely.
Buyers agents can not only help investors find a property that suits their needs, they can negotiate on behalf of the buyer. With local market knowledge and property negotiation experience, investing in these services can pay off well, especially in today's real estate market.