A recent survey of prospective Australian home buyers conducted by the Commonwealth Bank found that respondents from Sydney (57 per cent), Brisbane (49 per cent) and Adelaide (47 per cent) are the most likely to overvalue properties in their capital city.
The survey also revealed many Australians looking for a property have a limited understanding of what they can borrow and afford. Just over half of respondents (55 per cent) could identify what factors could potentially affect their borrowing power, such as credit card limits, monthly living expenses, annual income and savings.
“Discussing the local property market is a national pastime but these results show that, even for those actively looking to buy a property, perception can be different to reality. Home buyers need to do their research so they can enter the market with confidence,” CBA’s executive general manager of home buying Dan Huggins said.
The research coincides with the launch of the new CommBank Property app on Android and iOS.
Mr Huggins said the app can help potential buyers discover how affordable a property could be, search for properties that suit their lifestyle based on their financial position, assess the property’s estimated market price and, when they are ready, take the first steps to apply for a loan by applying for conditional eligibility or making an appointment with a home lender.
The app also allows users to view CBA’s estimated market prices and use integrated calculators to assess repayments, upfront costs and how much they can borrow.
In addition, users can access relevant tips and articles to guide them along the way, as well as recent local sales history, capital growth, median prices and much more to help them assess a suburb's performance.
"Our research found more than half of respondents didn’t feel confident they could find current property market price estimates or what their potential repayments could be, which are important things to know when looking for a property,” Mr Huggins said.
"Fortunately our app allows buyers to gain an estimated market value price, along with a clear snapshot of what their upfront costs might look like and their repayments," he said.
"We know people use a variety of resources to inform their purchasing decisions such as websites, real estate agents and their friends and family. The CommBank Property app provides all the information and insights in one place, any time, anywhere.”