Close to two-thirds of young first-home buyers are considering buying a home in regional areas, according to ME Bank's latest property sentiment report.
The new remote and flexible working arrangements due to the COVID-19 outbreak have influenced the sentiments of Australians towards buying in regional areas, said Andrew Bartolo, general manager for home loans at ME Bank.
"It's now a more feasible option for many and if prices are lower in those areas and you think it will improve your lifestyle — of course it's an attractive possibility, he said. " I think many Australians dream about moving to a regional area at some stage during their life, so it will be interesting to see how many do actually decide to pursue a sea or tree change, perhaps earlier than expected.”
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The report showed that 82% of first-home buyers are hoping to get more affordable deals as the economy moderates. In fact, over half of these first-time buyers are planning to break into the market in the next 12 months.
"First home buyers may be looking to find a silver lining in the current economic climate, thanks to greater potential for property price falls, record low interest rates and government support," Bartolo said.
However, Bartolo said the prospects of buying a home are more realistic with those homebuyers whose finances remained intact amid the pandemic.
Housing grants are another reason why first-home buyers are more eager to get onto the property ladder. The federal government's HomeBuilder scheme appears to be spurring interest from the segment, with over half saying they are planning to apply for the grant.
"With strong interest from first home buyers as seen in the report, hopefully, the HomeBuilder grant will help more younger Australians get their foot in the door and increase buying activity in the wider market as a result," Bartolo said.
