The Australian dream of owning property may be closer than people think, with one in two potential home buyers overestimating the median dwelling price of their capital city, according to research from CommBank.
A survey of prospective Australian home buyers found most were reasonably confident about their knowledge of the local property market. However, respondents from Sydney (57 per cent), Brisbane (49 per cent) and Adelaide (47 per cent) are the most likely to overvalue properties in their capital city.
The survey also revealed many Australians looking for a property have a limited understanding of what they can borrow and afford. Just over half of respondents (55 per cent) could identify what factors could potentially affect their borrowing power, such as credit card limits, monthly living expenses, annual income and savings.
Dan Huggins, Executive General Manager of Home Buying Commonwealth Bank, said: “Discussing the local property market is a national pastime but these results show that, even for those actively looking to buy a property, perception can be different to reality. Home buyers need to do their research so they can enter the market with confidence.”
This research coincides with the launch of the new CommBank Property app on Android and iOS, which provides everything Australians need to find and buy a property that’s right for them.
The CommBank Property app can help potential buyers discover how affordable a property could be, search for properties that suit their lifestyle based on their financial position, assess the property’s estimated market price and when they are ready, take the first steps to apply for a loan by applying for conditional eligibility or making an appointment with a home lender.
The new CommBank Property app, allows home buyers to:
In addition to:
"Our research found more than half of respondents didn’t feel confident they could find current property market price estimates or what their potential repayments could be, which are important things to know when looking for a property.
"Fortunately our app allows buyers to gain an estimated market value price, along with a clear snapshot of what their upfront costs might look like and their repayments," said Mr Huggins.
"We know people use a variety of resources to inform their purchasing decisions such as websites, real estate agents and their friends and family. The CommBank Property app provides all the information and insights in one place, anytime, anywhere.
“Using multiple data sources to provide more informative data and estimated market prices, the CommBank Property app is a truly integrated property app solution which provides potential home buyers with the confidence they need," said Mr Huggins.
Notes to the editor:
The CommBank survey was conducted with 1,000 respondents looking to buy a property in the next 12 to 24 months by independent research company, ACA research.
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