They might have a one foot firmly on the property ladder already, but one in four Irish homeowners looks set to move within the next year.
New research conducted by KBC Bank also found that a further 7 per cent have recently traded up to a larger property.
The research revealed that achieving better value over the life of the mortgage is the most important consideration for the majority of consumers choosing a mortgage (75 per cent), and that this is an especially important consideration for female home owners (81 per cent) looking to move. Of less importance were cash incentives (16 per cent) and a discounted rate in the first year of the mortgage (9 per cent).
The average budget that respondents have to spend on a new home is just under €210,000 (€209,300). Six in ten (57 per cent) plan to spend less than €200k on a house, with one in four (24 per cent) forecasting between €200k-€300k, and a further 14 per cent budgeting for €300k-€400k. More men (11 per cent) than women (2 per cent) plan to spend over €400k on their next property. Conversely, more women (59 per cent) than men (50 per cent) have less than €200k to spend.
Half of respondents (50 per cent) cited the need for more space or to accommodate a growing family as the primary reason for moving, particularly among female respondents (83 per cent), while the desire to live in a better location was deemed a priority by one in four (25 per cent). One in ten (10 per cent) said that they wanted to invest in a higher value property for the future, and a small proportion (2 per cent) of home owners said that noisy or annoying neighbours are the reason for the move. An additional 3 per cent of female respondents want to be closer to family.
While mortgage (75 per cent) and savings (47 per cent) emerged as the primary sources of finance for purchasing a property, male respondents (65 per cent) are in a significantly better position to fund the move from their savings compared to female buyers (40 per cent). A further 15 per cent of respondents plan to use a financial gift (8 per cent) and or their inheritance (7 per cent) to cover the cost.
Eight out of ten (79 per cent) respondents cited a range of factors holding back their property purchase. Chief among these were rising property prices (44 per cent) and being unable to find a suitable property (31 per cent). More women (35 per cent) than men (20 per cent) said they haven’t yet found a property that they like. One in five (21 per cent) said that they are being outbid in the process, and this was most evident among male bidders (30 per cent) compared to their female counterparts (18 per cent). A further 13 per cent highlighted cash buyers as an issue, again affecting more male (25 per cent) than female purchasers (9 per cent).
Of those who recently purchased property, four in five (82 per cent) plan to carry out some form of renovation or redecoration work at home. The most common jobs include small cosmetic improvements (41 per cent) and a fresh paint job (41 per cent), followed by the installation of a new kitchen (35 per cent). One in four (24 per cent) said their property needs a complete makeover, with this the case for significantly more male respondents (33 per cent) than females (18 per cent) – perhaps suggesting that these male purchasers were more willing to buy property in need of major modernisation.
The research also revealed that almost three in ten (28 per cent) home insurance policies are reviewed and switched when moving or trading up, with males more likely (50 per cent) to do so than female buyers (18 per cent).
