Property goals a top priority for Australians in 2016
AUSTRALIA'S love affair with property could be set to continue into 2016 despite recent news of a market slow down.
Current barriers to the property market, including increased variable mortgage rates and tight credit policies, may cool housing demand but a Yellow Brick Road poll discovered that saving for a first home or investment property makes up 40% of Australia's financial New Year's resolutions.
Yellow Brick Road spokesperson Lyndsey Douglas said that in this current environment, you might expect to see property "taking a back seat" to financial aspirations such as saving and budgeting or consolidating debts.
"However, the Australian dream of owning property and the security that comes with it - is still dominant," she said.
Other top financial New Year's resolutions were to decrease debts (25%), to budget (15%), save for travel (10%) and get superannuation sorted (7%).
Then there was a small percentage that said in 2016 they were going to just enjoy their disposal income (2%).
"The property market is changing rapidly with some cooling predicted in previously hot areas," she said.
The upside is that it might ease some of the affordability pressures faced by first home buyers as competition from other buyers declines.
"The challenge though is increased rates and tougher calls by lenders who are having to turn more prospective borrowers down based on their ability to service their mortgage.
"As an aspiring property buyer in 2016 you may find it harder to qualify for a loan in this environment.
"A mortgage broker can help navigate these new constraints by finding you a lender so that you can realise your property dream.
"You can improve your likelihood of securing a loan by saving a bigger deposit or buying a more affordable property.
"Despite stricter lending conditions, our poll results certainly show that people are not deterred from following their dreams of owning property."
Yellow Brick Road believes with the start of the New Year those who set themselves property savings goals can make them a reality but they need to take time to make a plan.
"Financial dreams don't just happen," Ms Douglas said.
"You need goals and action items that you can achieve on a daily, weekly and monthly basis. I'd also encourage you to be honest with yourself and if you can be accountable on your own or if you need a money savvy friend or financial adviser to work with you."
"I'd encourage everyone to take advantage of the New Year to reset and make some positive changes that will help you secure a better financial future for you and your family."