Property buyers delay plans due to COVID-19, finds Gateway Bank
Fifty-two per cent of first home buyers have delayed their plans to purchase property due to the COVID-19 pandemic, according to new findings from Gateway Bank. Meanwhile, 16% have put their plans on hold indefinitely.“As more people are being forced to spend their deposit savings on basic living expenses, the prospect of buying a property is now even more elusive,” said Gateway Bank chief executive officer, Lexi Airey. In a survey of 700 Australians hoping to buy their first home, Gateway Bank found that half have been forced to dip into their deposit savings. Of this group, 45% did so to cover day-to-day expenses, while 17% used their savings to help a family member experiencing financial stress.Perhaps most shocking, 16% of potential first home buyers admitted to draining most of their deposit in the months since the pandemic struck.For many, recovering lost savings won't come easy, especially at a time when job insecurity is on the rise and ties to employment are only being preserved through government largesse.In fact, according to the research, 56% of first home buyers believe it will take them an additional one to three years to save up a deposit, while 25% expect to be saving for at least another three years.
Read More