Property prices listed as Australians’ main challenge in property buying decisions
About 37% of homebuyers in Australia say interest rates did not influence their decision to buy or sell property, a new property research survey found.
The preliminary findings from InfoTrack’s “2024 State of Real Estate Report” follows a recent decision from the Reserve Bank of Australia to leave the cash rate on hold at 4.35% for the sixth consecutive month.
Tom McGuigan, one of the respondents to the survey, said he bought a two-bedroom unit in the inner Brisbane suburb of Lutwyche to get into the real estate market.
He said he made his move because he had the money for a deposit.
“Rapidly rising rents further incentivised me to buy and pay off a loan rather than pay off someone else’s mortgage at an overly inflated price,” McGuigan said, adding that he factored rate hikes into his purchase and gave himself a “financial buffer.”
The report also found that 27% percent of the respondents listed property prices as a main challenge in their decisions to buy a property, while 20% cited market conditions.
Lee Bailie, InfoTrack’s head of property said that interest rates may not stop buyers from purchasing but they can influence the type of property they will buy.
“Interest rates, property prices, and the rising cost of living means some buyers must compromise on the size, type, and location of property they buy,” Bailie said.
InfoTrack is still completing the survey aimed at getting a comprehensive understanding of Australians’ property buying and selling experience.
Home buyers and sellers are encouraged to participate in the survey until June 9 if they have bought or sold property in the last 12 months.
Respondents have a chance to win a $2,000 Flight Centre gift card.
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