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.
"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," Dan Huggins, Executive General Manager of Home Buying Commonwealth Bank said.
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.
CommBank has released a property app aiming to 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:
- View CommBank estimated market prices, based on multiple data sources, to help assess a property's potential market price - even if it's not for sale.
- Gain a better understanding of what they can afford, by allowing users to input their finances so they can find a property to suit their lifestyle.
- Allow buyers to use integrated calculators that assess repayments, upfront costs and how much they can borrow simply for each property.
- CommBank customers with NetBank can also use the app to apply for conditional eligibility.
- Shortlist their favourite properties and share them with a buying partner.
- Save calculations to their profile to help them further understand which properties are in their price range.
- Access relevant tips and articles to guide them along the way, as well as recent local sales history, capital growth, median prices and much more to help them assess a suburb's performance.
"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," said Mr Huggins.