Home buyers are not confident taking on unnecessarily high levels of debt, RFi director Alan Shields has claimed.
According to Mr Shields, just 28 per cent of potential home buyers feel confident borrowing more than 80 per cent of a property’s value – down from 38 per cent six months ago.
Mr Shields told Real Estate Business that the natural disasters earlier in the year encouraged home buyers all over Australia to push their money into savings accounts, rather than property.
“A study we completed for Genworth Financial showed home buyers are not confident with high levels of debt,” he said.
“A lot of people started to put money into high interest savings accounts, which was the first indication that something was happening in consumer land. We now know that home buyers want to have a bigger deposit behind them before leaping onto the property ladder.”