Our first home buyers are struggling with property buying literacy

A recent study conducted by one of Australia’s lenders shows that today’s first home buyers are not as knowledgeable on what’s involved in purchasing a home as they should be…

Date:

02-Jul-2018

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Author:

Jane Mortimer

Our first home buyers are struggling with property buying literacy

A recent study conducted by one of Australia’s lenders shows that today’s first home buyers are not as knowledgeable on what’s involved in purchasing a home as they should be…

Out of our current first home buyers who are ready and looking to buy - 61% have little property buying literacy. But in saying they don’t have the knowledge; they sure seem to have the confidence. Around 70% say they are sure and ready to make financial choices, and half again say they understand the process and related costs of buying their first home.

The largest areas of concern we have with today’s first home buyers are:

•Lenders’ mortgage insurance - first home buyers seem to think it covers them, wrong it covers the lenders.
•Cooling off period – first home buyers buying at auction think they have a cooling off period – again wrong this is only for Private Sale.
•First home buyers are not aware that the deposit is required on auction day.
•They are unaware of what Conveyancing is/for.
•They have very little knowledge of offset accounts.
All the above is just some of the common misunderstanding or knowledge left unknown to first home buyers, but it also isn’t just them.
Even our current homeowner and our investors who we would think are more knowledgeable than the first home buyer, they are still some who are left in the dark about the above points…maybe it’s because of changes over time or maybe it’s just room for improvement.

If you're a first home buyer or looking for more information give us a call or send us a message - https://www.rangesfn.com.au/contact

we can always lend a hand or point you in the right direction!