New NAB research has revealed the factors Australians consider most important when purchasing a home, with borrowing capacity topping the list.
The latest NAB residential property survey showed that 82% of respondents believe the amount buyers were prepared to borrow to buy was the biggest factor, up from 74% a year ago before interest rates started rising.
The old adage, “location, location, location” continued to hold true for many, NAB said, with 60% of those surveyed highlighting good local shopping, restaurants, and other amenities as key.
House size was increasingly important, at 57% (50% in 2021). In contrast, fewer people considered buying a house instead of an apartment (45% down from 53%), land size (44% down from 52%), having a work or study area (21% down from 26%) or being in a regional area (16% down from 21%) as important.
“A trend we are seeing emerge from the pandemic is more Aussies considering apartments over houses for the first time since the survey began, driven by return to office working and caution on borrowing amounts,” said Andy Kerr, NAB executive homeownership. “Affordability and rising interest rates are absolutely part of the equation for home buyers. In a rising rate environment, where people are uncertain on when the rising rate cycle will end, Australians are more cautious on what they can afford.”
Kerr reminded customers that in terms of being able to pay a loan, banks ensure they can appropriately manage their repayments should interest rates rise.
“We know there are some people who are feeling the pressure of rising interest rates,” he said. “For anyone who is concerned please get in touch with your bank, we are here to help.”
Kerr noted that Australians return to the office more often, they are also starting to think about what the balance of their working week will look like.
“Location is still one of the most critical buying factors and flexible working is here to stay, so where Aussies buy continues to be important,” he said.” We all love walking to our local café or shops and this has continued to be a trend in the survey.”
