Gen Y Home Buyers Becoming More Creative
RealEstate.com.au have recently shared the results of their second Housing Affordability Index (conducted in June 2012), when they asked Australians about their property dreams and realities.
The survey included a representative sample nationally, across age and gender, with 71% of respondents owning a property, and 15% stating they were in the market to buy when surveyed. While most respondents (84%) agreed that the rising cost of living has had an effect on their property investment plans, one group in particular were much more optimistic.
Gen Y (most often defined as those born after 1983 – currently aged 29 years or younger) were the most optimistic about housing affordability, and are “more than half as likely as other generations to co-buy or share expenses to enter the market.” They were also more optimistic about their financial futures, reporting expectations of a significant increase in household savings and income.
While some of us might explain this anomaly as the optimism of youth, it’s perhaps more to do with creativity and flexibility by those not yet set in their ways. 72% said they would consider purchasing a property with a friend or family member in order to enter the property market, compared with less than 50% amongst other generations.
Some of these respondents might be referring to accepting assistance from generous parents (rather than younger family members), however a there are be many seriously considering investing in property together with like minded peers in order to get a foot on the property ladder.
Low interest rates and relatively low property values have combined to make it a tempting time to enter the property market. Financial comparison website RateCity released its first-home buyer index recently also, revealing that it is easier than it has been for over two years for these Gen Y-ers to make that first creative property investment decision.