A joint project by RAMS and CoreData Research has found that the first home buyer market is aging. 40.5 per cent of first home buyers are now aged over 36, an older average than ever before. The current data represents a doubling of older buyers entering the market. At the same time first home buyers aged 25 or less dropped to just 18.3 per cent.

Despite historically low interest rates house prices remain an all-time high. High house prices and tighter lending criteria are keeping less established borrowers out of the market longer.

House prices are being kept high by the sheer numbers of people entering the market. Many list a fear of ‘missing out’ as driving their decision to get a mortgage and buy a home.

Martin Jager. Image: www.news.com.au

Martin Jager. Image: www.news.com.au

While younger people, it seems, have said they have other priorities demanding their attention before investing in a home.

Martin Jager, chief executive officer of RAMS, said, “We are seeing that some first home buyers are also waiting until they are in a better financial position to manage their mortgage.

“The demographics of people buying homes now is different to what it was two, five and ten years ago. We are seeing more women, more single people, more 30-somethings.”

The rising cost of living has also dissuaded many from taking the plunge on a mortgage. Fear of further rises and the financial difficulties that will entail have more cautious borrowers saving larger deposits.

“People are struggling to meet cost of living demands and are putting home ownership off,” said Oracle Lending Solutions director Angelo Benedetti, “which is probably to their detriment because they are missing out on the growth.”

Many under-25’s are getting a toe-hold in the mortgage market with the assistance of their parents.. With The track record and amassed capital of parents as guarantors is a very attractive option to lenders. This option enables borrowers to enter the house market and take advantage of the current property gains.

Many renters are finding loan repayments no more expensive than the rent they are already paying. The equity in home ownership, then, is just gravy.

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