Despite cost of living and interest rate concerns, almost half of NSW home buyers think it’s a good time to invest in property.

The Homeloans Home Buyer Barometer Q2 2011, which surveyed 2000 Australian first home buyers, homeowners and investors, found that 47 per cent in NSW believe the market is right to invest in property, one in three (35 per cent) were unable to give an opinion, whilst almost a fifth (18 per cent) were adamant that now definitely isn’t the right time to be buying.

According to the latest poll released by mortgage provider Homeloans Ltd, NSW is also most prepared to carry out renovations when purchasing a property among all states or territories in Australia.

And although the research shows brand new properties or properties requiring no renovation are the most in demand in NSW, with 59 per cent of respondents saying this is what they would prefer, a huge 26 per cent of those surveyed are looking to buy property that requires renovation. This compares to only 12 per cent in Western Australia, 19 per cent in South Australia and Victoria and 20 per cent in Queensland. Just 18 per cent in NSW would prefer to build their own.

“A definite contributing factor to this desire or need to renovate is the higher cost of housing in New South Wales, and Sydney in particular,” says Tony Carn, Homeloans’ general manager third party distribution.

“There are also the other costs associated with purchasing a property, such as stamp duty and state taxes which can be huge, particularly for those looking to upgrade to a larger home. Purchasing a less expensive property and renovating is therefore an attractive option.”

Australia-wide, interest rate concerns have taken a backseat to the rising cost of living, which is the top financial concern for homeowners and home buyers. In NSW, the key financial concerns were increasing cost of everyday living (33 per cent), followed by interest rates (24 per cent). On a state by state basis, home buyers in New South Wales were the most worried about costs associated with raising a family (11 per cent)

The Homeloans Home Buyer Barometer also showed the greatest barriers to home ownership in NSW were high property prices (49 per cent), saving for a deposit (27 per cent), and fear of not being able to meet interest repayments (22 per cent).