Fast facts about 1st home buyers – who they are; a brief description of a typical 1st home buyer; what they think about when looking for a first home; preferences; and what most buy.
- 25 to 44 years
- 3 people per household
- 36% no children at home
- 30% couples or living alone
- A projected 26% of total new housing demand over next decade (in this case for the Brisbane outer suburbs)
- Portfolio work not long-term work commitment
- Partnering later
- Parents as friend
- Sex, less stigmas, very little tradition
- Fewer children
- In short, options galore – so it is not until their late 20/early 30s to early 40s that many buy their first home
- Room to grow
- Property improvement
Preferred housing options:
- 10% to 20% – apartments (inner city)
- 20% to 30% – townhouses/duplexes and similar multi-housing products (middle-ring suburbs)
- 50% to 70% – detached-based homes (mostly outer suburbs)
What most buy?
- A property that can be improved – so they often buy an existing dwelling – in fact four out of five 1st home buyers buy an older established home
- What also appeals is a property that is capable of taking in a tenant/s to help pay the mortgage
Something to think about
Given that first home buyers are looking for a home they can improve – and when it comes to a middle or outer suburban setting – our discussions with this market segment suggest that a new smaller, yet high quality house (being either a one or two-bedroom property) has considerable appeal.
The key is that this home is sold with an approved building extension/improvement plan and costing in place – so that they can expand the house, within a set time frame and budget.
This arrangement allows a young couple to afford a home now – maybe gain some additional rental income over the short to medium term – and expand (or improve) it as their needs change and/or finances improve.