Aussies 'favouring savings accounts over home loans'

Worries over the state of the economy are leading a growing number of Aussies to put funds into savings accounts rather than apply for home loans, it has been claimed.

Tim Lawless, research director at RP Data, said in a statement that many potential buyers are waiting, pushing real estate sales down 25 per cent below the average for the last five years.

"Despite the low rate of unemployment and the strength of the resources sector, it is clear that the average Australian is content to pay-down debt and wait for some economic certainty to return," he asserted.

The recent RP Data-Rismark Hedonic home value index revealed that during the first five months of the year, there has been a 2.7 per cent drop in prices in the country's capitals.

With prices falling, those with savings may want to consider investing in property and applying for a home loan in the near future.

Earlier this week, a study published by RAMS Home Loans revealed that 76 per cent of people under the age of 30 had never rented a house.

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