5 Reasons Why People are Waiting to Buy Their First Home

Source: Reserve Back of Australia

By the end of May:

  • The number of owner occupier first home buyer loan commitments fell 0.8% in seasonally adjusted terms, though it remains at historically high levels particularly in New South Wales and Victoria. The cessation of the HomeBuilder grant and other state government initiatives have influenced falls in Queensland, Western Australia and South Australia.
  • Owner occupier first home buyer loan commitments accounted for 32.7% of all owner occupier commitments (excluding refinancing), in original terms

At some point in your adult life, people start to ask you when you are going to buy your first home instead of renting, because that is what grown-ups do. In some ways, it is a valid question. But just because you haven’t invested in a property yet doesn’t mean that you have failed at adulthood. In fact, there are many people who have not jumped on the property ladder for a variety of reasons:

Student Debt

Credit: Mikhail Nilov

Debts can come in all shapes and sizes but student debt seems to be a massive issue for many young adults. The simple fact is many people are having to use a large chunk of their wages to pay off this debt before they can move forward in other areas. The size of the debt can mean that some people may never be able to afford their own home, or will have to wait until they are in their 40’s.

Searching for the Perfect Place

Let’s be honest with ourselves, buying a property is a massive financial commitment and many people don’t want to settle with just any house. So, with this in mind, many people are searching for the perfect home. Some people are deciding to buy a house that needs a little (or a lot) of work in their ideal location. This way, they get the location of their dreams and use companies such as Bellriver Homes to create the house of their dreams.

Waiting to get Married

Credit: Anastasia Shuraeva

Long gone are the days when people had to get married. Now the only reason people will say “I do” is for love. With this in mind, many people are waiting to find their True Love before they buy their first home. There are many reasons to do this but one of the biggest reasons is that you both get an equal say in the property and it will fit both of your needs.

Travelling

International travel might be a bit difficult under the current circumstances but the travelling bug is still alive for some people. So why would you consider buying a house if you plan on travelling the globe? Depending on who you ask, it could make more financial sense to invest in a property when the housing market is in your favour. However, many people are renting homes around the world as they travel, and this means they might not have the funds to support a rental and mortgage at the same time.

The Property Ladder is Impossible

The property market and the ability to buy a house has changed dramatically over the years. After the last few recessions and the collapse of the property bubble, lenders are making it harder than ever for first time buyers to buy their first property. In this case, it is not that people are choosing to wait, they have no choice. Buying a home has become nothing but a pipe dream for some people despite being able to afford the monthly repayments.

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