Generation Y looking to secure their wealth in property

By the resi financial blog team, 05 September 2013

Generation Y looks at property investment

A shifting change in generational perception is taking place in Australia, with many of those in Generation Y becoming far more financially aware and looking into securing their future wealth through property.

According to the latest study by Co-Op, the younger generation is becoming increasingly preoccupied with purchasing property as soon as possible, shedding the preconceived notion of spending all their money on living in the moment.

Dubbed 'Generation Sensible' by the report, the group includes 17 to 29 year olds who are either continuing or just finishing university and are becoming more concerned about their futures, especially in the wake of the Global Financial Crisis.

Property ownership seems to be an increasingly important milestone in many young Australian’s lives, with 94 per cent of survey respondents stating that they aim to purchase their first home within 6 years of leaving tertiary education.

However, property affordability was one of the biggest concerns highlighted in the survey, with 66 per cent of the respondents stating that unaffordable housing was the biggest perceived issue in their future.

Furthermore, 80 per cent said that they would probably never be mortgage free and own their properties outright due to this perceived increase in housing prices.

However, this didn't faze the respondents, who sought the security of real estate regardless.
According to the study, this generation are "acutely aware of the major issues of unaffordability of housing going forward, but at the same time is clearly confident that even if they don’t ever own their own home, they still believe it’s a good and safe financial idea long term."

This rise in the number of young buyers approaching the market could lead to an increase in the demand of loans for first home buyers, especially as they begin to save deposits and approach the real estate market.

Categories: Home Loans, Personal Finance