First home buyers in Australia are only keen to buy in areas where the value of their property is likely to go up.
The potential for house price growth has become the most important factor, after affordability, when buying the first home, according to a survey of first home buyers by lender St George.
The distance of the property from their workplace has been pushed down to third place, followed by distance to shops, and distance to family and friends, the poll of 1,000 first time property investors across Australia revealed.
Record low interest rates have fuelled a housing boom across Australia for more than two years, resulting in first home buyers being pushed to the margins as investors corner the bulk of the supply.
Property prices are expected to moderate this year as more stock comes onto the market and as mortgage lenders crack down on overseas investors.
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"Evaluating which properties presented good value was ranked by respondents as the most difficult task during the house hunting process, showing the importance placed by first home buyers on understanding the market and potential for capital growth," the St George survey said.
Nearly a quarter of the respondents said they were forced to make compromises to buy their first home. Nearly half of those compromised on the location, with almost an equal number paying more than they wanted to, the survey found.
