The latest online survey conducted by MyHome.ie provides an informative insight into the behaviours and attitudes of the country’s First Time Buyers (FTB’s).
Summary of Key Findings
- 48% of FTB’s currently have a mortgage approval and a further 31% are actively seeking mortgage approval 58% of FTB’s intend buying a home within the next twelve months
- 78% of FTB’s have the required funds to pay a deposit
- 72% of those with deposit funds saved the required amount
- Only 3.8% of FTB’s have been declined a mortgage
- 37% of those who do not intend purchasing in the next twelve months cited falling house prices as the reason they do not intend to purchase, and a further 43% cited the uncertain current economic climate or the worrying economic outlook as the reason why they do not intent to purchase.
- The three bedroom semi detached home is the most sought after property type for First Time Buyers.
The latest survey of First Time Buyers, conducted in recent weeks by MyHome.ie confirms the view that they remain active in the current property market and home ownership in the near future remains the firm objective of the majority of those surveyed. 58% of First Time Buyers said they intend buying a property within the next twelve months, down from 67% at the beginning of 2009 whilst 30% of respondents were currently unsure as to whether they would purchase within the next year.
Of those who indicated they intended to buy, 37% intended to buy within the next three months which helps explain why estate agents have seen some increase in activity at the lower end of the market during the autumn and a further 37% were happy to continue playing awaiting game and had the intention of purchasing in a six to twelve month timeframe.
For the 12% of First Time Buyers who had no intention of purchasing in the next twelve months, the uncertain economic environment and the fact that house prices continue to fall were the main reasons articulated for staying out of the market at the present time. Interestingly, only 2% of First Time Buyers who did not intend to buy cited being refused a mortgage as the reason they did not intend to purchase.
One third of First Time buyers are looking specifically to purchase a three bedroom semi detached home and only 2% are searching for a one bedroom apartment whilst 12% are looking for a two bedroom apartment.
Surprisingly only 16% of First Time Buyers were looking for a new home and this may be reflective of the hugely improved affordability and availability of existing properties, particularly three bedroom semi detached homes, in more established suburban areas whereas for a many number of years these types of properties were simply out of reach to the majority of First Time Buyers.
Unsurprisingly First Time Buyers are focussed on the lower end of the property market with 71% searching for property in the €150,000 to €350,000 price range and a further 9% looking for property worth between €350,000 and €400,000. 8% of First Time Buyers were looking for a home in the €450,000 to €650,000 price range.
Finance & Mortgages
The vast majority of First Time Buyers who responded to the survey (78%) have the required funds available to pay a deposit should they wish to whilst 22% did not. Of those that did have the funds to pay a deposit, a commendable 72% had saved the money required, 18% had relied on assistance from family or friends whilst 4% had borrowed the money from a bank or credit union.
With regard to First Time Buyers’ position on mortgages, almost half (48%) had received mortgage approval but had not yet bought and a further 31% were actively seeking a mortgage. Only 4% of respondents had been turned down when applying for a mortgage and a further 16% were not interested in getting a mortgage at the present time or not in the market for a mortgage at the present time.