Streets Ahead : Streets Ahead Edition 12
11 Barriers to buying a first home Figure 3: Biggest barriers to buying a first home Source: Genworth High property prices are still the biggest barrier to purchasing a first home in all states except South Australia and Western Australia, where a higher proportion of respondents indicated that the difficulty of saving for a deposit was the biggest barrier. South Australia has the highest proportion of respondents who cited uncertainty about future employment (10% compared to the national average of 7%), however this was down from 15% in September 2015. Western Australia has the highest proportion of respondents who cited the associated costs of purchasing property such as stamp duty and land taxes (11% compared to 7%) up slightly from 10% in September 2015. New South Wales has the highest proportion of respondents indicate that high property prices are the biggest barrier to buying a first home (40% compared to the national average of 33%). John Arnott suggests that because of the difficulty entering the property market in New South Wales, people are increasingly looking for alternative means of entry. “More and more people are coming together and trying to get shared deposits. The barriers to entry are growing. People are trying to get a foot on the ladder and they can no longer do it on their own, so they are either seeking more support from parents or grouping together as a bunch of mates and deciding to put their resources together and put that into a property. As social connection continues to grow, I think that’s a trend that we’ll probably see increase”. While overall, fewer FHBs indicated that high property prices are the greatest barrier to homeownership (25% compared to the overall average of 33%), there has been an increase of 82% over the last 12 months in FHBs who indicated that the biggest barrier to buying a first home is saving for the deposit.
Streets Ahead Edition 11