21pc of would-be home buyers are struggling for finance

One in five potential home buyers are unable to seal a deal because they cannot obtain finance, according to a new survey.

The survey, conducted by property website realestateview.com.au, found 21 per cent of respondents nominated securing a loan as one of the main obstacles to purchasing a property.

The Housing Sentiment Report for the March 2014 quarter also found that 49 per cent of potential buyers had been put off by rising prices and 48 per cent had been priced out of the market or outbid.

Changes to the first home buyer’s grant were nominated by 41 per cent of respondents, stamp duty costs also attracted 41 per cent, while 33 per cent were worried about the state of the market.

The survey also found that 32 per cent had struggled to save for a deposit and 28 per cent were worried about job security.

Meanwhile, realestateview.com.au also interviewed renters who had no intention of buying.

According to the survey, 18.9 per cent of those renters had been put off by their difficulty in securing a loan.

The survey also found that 28.7 per cent of renters had avoided the market because they couldn’t afford to buy in their preferred area, 25.7 per cent considered the market overpriced and 22.5 per cent thought it would be cheaper to rent.

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