Almost nine out of 10 prospective first home buyers are paying rent to a landlord or family member while also trying to save for a deposit, new research has found.
According to RAMS First Home Buyers’ Pulse Check survey, one in five prospective buyers are also allocating more than 20 per cent of their income towards saving for a new home, while one in 10 home seekers are committing at least half their earnings towards a savings plan.
RAMS acting chief executive Tony MacRae said many young Australians are dying to buy a home in a bid to stop paying rent.
“It can be a vicious circle for many potential first home owners who are not only striving to pay their weekly rent but also committing a substantial amount of their income towards saving for a deposit,” Mr MacRae said.
“Our research shows the key motivation to buying a first home is to avoid high rental costs with 64 per cent of prospective buyers seeking to buy a home to get off the rental treadmill.”