25 to 44 years
3.3 people per household
36% no children at home
30% couples or living alone
A projected 26% of total new housing demand over next decade
Generally have a HECS debt
Portfolio work, not long-term work commitment
Parent as friends
Sex, less stigmas, very little tradition
In short, options galore – so it is not until their late 20s/early 30s to early 40s that many buy their first home
Room to grow
Preferred housing options
10% to 20% – inner city apartments
20% to 30% – townhouses/duplexes and similar multi-housing products in mid-range suburbs
50% to 70% – detached-based homes in mostly outer suburbs
What most buy
A property that can be improved – so they often buy an existing dwelling – in fact, four out of five first home buyers buy an older established home.
A property that is capable of taking in a tenant/s to help pay the mortgage.
So what does this info mean?
Given that first home buyers are looking for a home they can improve – and when it comes to a middle or outer suburban setting – our discussions with this market segment suggest that a new smaller, yet high quality house (being either a one or two-bedroom property) has considerable appeal.
The key is that this home is sold with an approved building extension/improvement plan and costing in place – so that they can expand the house, within a set time frame and budget.
This arrangement allows a young couple to afford a home now – maybe gain some additional rental income over the short to medium term – and expand (or improve) it as their needs change and/or finances improve.
When looking to purchase your first home, be sure to speak to a Financial Expert to determine your position and consider getting a pre-approval. Naked Real Estate use Ash Blue Finances for all our financial needs.