More than 30 per cent of homebuyers in Australia said interest rates did not influence their decision to buy or sell property, according to Australia’s largest property research survey. Preliminary findings from InfoTrack’s 2024 State of Real Estate Report: Insights from Australian Buyers and Sellers, showed 37 percent of respondents did not see interest rates as a major factor.
The insights follow this month’s decision by the Reserve Bank of Australia, to leave the cash rate on hold at 4.35 per cent, for the sixth consecutive month. Survey respondent Tom McGuigan, 27, said he chose to buy a two-bedroom unit in the inner Brisbane suburb of Lutwyche, to get a foothold in the market.
“The consensus I heard about property is, get in when you can. I had the deposit, so I made my move. Rapidly rising rents further incentivised me to buy and pay off a loan rather than pay off someone else’s mortgage at an overly inflated price,” Mr McGuigan said.
“There was a lot of stress among my peers with rising interest rates late last year, but I factored rate rises into my purchase and gave myself a financial buffer,” he said.
The InfoTrack survey also found, just under a third of respondents (27 per cent) listed property prices as a main challenge in their property buying decisions, followed by 20 per cent who cited market conditions. Mr McGuigan said rising prices and tough competition meant he wanted to move as soon as he had a decent deposit.
“In the two to three months that I was looking, properties were going up five to 10 thousand dollars per month, and they are still rising now. I was looking for a two-bedroom apartment and knew a house within the Brisbane metro area was not even an option for the price I wanted to pay,” he said.
InfoTrack’s Head of Property Lee Bailie said while interest rates may not stop buyers from purchasing, they can influence the type of property purchased. “Getting on or moving up the property ladder is a priority for many buyers, but interest rates, property prices, and the rising cost of living means some buyers must compromise on the size, type, and location of property they buy,” Mr Bailie said.
InfoTrack is undertaking the research to gain a comprehensive understanding of the property buying and selling experience in Australia. Anyone who has bought or sold property in the last 12 months are invited to fill in the survey here: https://www.surveymonkey.com/r/2024-real-estate-report
Home buyers and sellers have until June 9, 2024, to participate in the survey and go in the draw to win a $2000 Flight Centre gift card!*
*Terms and conditions apply: https://www.infotrack.com.au/wp-content/uploads/2024-State-of-Real-Estate-Report-Insights-from-Australian-Buyers-and-Sellers-Survey-TCs.pdf
