New survey confirms the importance of property to Australians
Over 40 percent of respondents of a recent survey said they were reliant on future house price growth to achieve future life / financial goals, with 10 percent completely reliant.
The study of 1500 Australian adults also saw 38 percent want prices to increase while 37 percent want them to fall.
Where you sit largely comes down to your property ownership status: 39 percent of those who own the home they live in and 47 percent who own an investment property indicated they are ‘reliant’ on future prices, presumably increasing, while 48 percent of those who don’t own a property also say they are reliant, presumably wanting prices to fall.
Younger respondents indicated they are more reliant on future house prices than older: 51 percent of Millennials (25 to 39 year olds) said they are reliant compared to 30 percent of Baby Boomers (55-74 year olds).
Most tellingly, the survey indicates more Australians would benefit from property prices falling than rising, with only 28 percent indicating they’d benefit by selling if prices continued to rise compared to 47 percent who said they’d benefit by buying in if property prices fell.
A quarter of home owners happy to see house prices to fall
ME home loan expert Patrick Nolan said he was surprised to find 37 percent of respondents want property prices to fall, including 24 percent of those who own a home and even 20 percent of those with an investment property, compared to 38 percent of who want prices to continue rising 38 percent.
“Traditionally Australians fall into two camps when it comes to property prices: owners, who want them to rise, and non-owners, who want them to fall.
“But with high prices disrupting the dream of home ownership and the benefits that brings, views are changing.”
“That property owners were willing to see asset values fall is a sure sign house prices had reached heights many think are unfair,” Nolan said.
When asked why they want prices to fall, the overwhelming reason given was to help address the housing affordability issue (57 percent), a sentiment expressed by 97 percent of those with property.
The bulk of those wanting house prices to continue rising are property owners: 49 percent of home owners and 55 percent of investors.
