According to a survey of 1,000 owner carried out by the bank, affordability is the most important factor to new home buyers, however potential for future capital growth is the second most important factor.
The survey revealed that future growth potential is more important than numerous other influencing factors often associated with owner occupiers.
According to the survey, potential for future growth is more important for homebuyers than distance to work (ranked 3rd priority), distance to shops and attractions (4th) and distance to family and friends (5th).
The survey respondents also said evaluating which properties presented good value was the most difficult task during the house hunting process.
Ross Miller, general manager for St.George retail banking, said the survey shows owner occupiers understand just how important the right purchase is when it comes to an asset as large as their house.
“Buying a first home is more than buying a roof over your head. Our home is usually our biggest financial investment and over the last few decades we have seen a sharp increase in the value of the average Australian home,” Miller said.
“First home buyers are wise to view their purchase as an investment. To assist first home buyers, St.George Bank offers tailored advice and a range of competitive products, helping make the first home dream a reality,” he said.
While first home buyers seem to have a list of qualities they target when making a purchase, the survey results show they’re also willing to be flexible.
Just over a quarter of respondents, 26.4%, said they had to make compromises to buy their home.
Location was the most common area for compromise, with 49.8% of respondents saying they had given up on their dream location, while 45.7% said they had compromised on price.
Evaluating which properties presented good value was ranked the most difficult task during the house hunting process.
