By Chris Thomson
West Australian first home buyers are turning their backs on units and townhouses, in favour of bigger detached dwellings, a leading survey has found.
A strong trend toward owning a larger home has emerged, with 87 per cent of WA first home buyers this year looking to purchase a house rather than a unit or apartment, according to the 2009 Mortgage Choice First Homebuyers Survey.
This compared to only 49 per cent in 2008, and 76 per cent nationally.
The survey found only 11 per cent of first home buyers wanted a unit or apartment, and a tiny 1 per cent were interested in a townhouse.
Respondents ranked three bedroom houses and four or more bedroom houses as the most preferred (40 per cent each), followed by two bedroom unit/apartments (9 per cent), then two bedroom houses (6 per cent).
Although 51 per cent of West Australian respondents said the Federal Government's First Home Owner Boost was "too good to refuse", the main motivation to purchase property this year was historically low interest rates (56 per cent or respondents).
Just over half (51 per cent) of WA respondents said that low property prices influenced their decision, while 24 per cent said rent was too expensive and 24 per cent said rent was comparable to home loan repayments.
Last week, WAtoday.com.au revealed a list of 10 suburbs where it was now more expensive to rent than to buy.
In the Mortage Choice survey released today, an overwhelming 94 per cent of WA respondents said they would cut back on spending so they could buy a home before 2010.
Almost half of the survey participants (48 per cent) said the largest concern about buying a home was not being able to afford repayments in future.
WA was the only state where Generation Y led the pack, with 48 per cent of the 18-29 year age group planning to buy by 2010.
Other Key WA Findings:
- Only 1 per cent of West Australians plan to buy land to build on - the lowest rate in Australia;
- 17 per cent plan to convert their first home into an investment property, the most of any state;
- 61 per cent will purchase an established home, despite extra government incentives for new homes;
- 24 per cent plan to contribute 20 per cent or more deposit;
- 9 per cent have not started saving towards their deposit but will before they buy;
- 13 per cent do not intend to save anything, instead relying solely on the First Home Owner Boost.
Home loan broking company Mortgage Choice commissioned the independent online nationwide survey in late February 2009, asking questions of 1012 respondents.