Victorians are divided about whether now is a good time to be buying property, according to the latest poll from mortgage provider Homeloans Ltd. Compared with other states, they’re also finding high prices to be a greater barrier to home ownership.

The Homeloans Home Buyer Barometer Q2 2011, which surveyed 2000 Australian first home buyers, homeowners and investors, found that 44 per cent of Victorians believe the market is right to invest in property, 37 per cent were unable to give an opinion, while 20 per cent were adamant that now isn’t the right time to be buying.

“Our research found that opinions are widely varied about whether it‟s a good time to buy, with many respondents claiming that too much uncertainty exists to have confidence one way or the other, whilst others believing that prices are still over-valued,” says Tony Wood, Homeloans’ state manager retail sales, Victoria.

“In Victoria, high prices are still a significant barrier to home ownership than in other states, despite the median property price being lower than in Sydney, Canberra and Darwin. Simply put, the volatility of property and equity markets in recent years is leaving home buyers cautious.”

Of those Victorians who believe it’s a good time to be buying, almost half would prefer a brand new house or unit that needs no work (60 per cent), almost a quarter are keen to build their own house or unit (22 per cent), whilst 19 per cent would prefer an existing house or unit they can renovate.

“We’ve noticed a significant shift away from families looking to purchase established properties within a 10km radius of Metro Melbourne to house and land packages and „spec‟ homes in the more affordable emerging areas within the Western Melbourne growth corridors,” says Wood.

“We have also seen a significant increase in enquiries from families that are first or second home buyers within the low to middle income brackets looking to either get a foothold in the market or looking to upgrade to a larger property and a better lifestyle for family reasons.”

In addition to high property prices (58 per cent), major barriers to home ownership in Victoria were saving for a deposit (20 per cent), and fear of not being able to meet mortgage repayments (18 per cent).

Australia-wide, interest rate concerns have taken a backseat to the rising cost of living, which is the top financial concern for homeowners and homebuyers. In Victoria, the key financial concerns were increasing cost of everyday living (34 per cent), followed by interest rates (23 per cent), property prices (13 per cent), costs associated with raising a family (8 per cent), and job security (8 per cent). A meager 4 per cent had no financial concerns.

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