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Generation Y Sacrifices for Great Australian Dream

In order to better understand the next generation of property borrowers, Mortgage Choice surveyed Generation Y on their property investment intentions.

Many are bucking with the generational stereotype – wanting the best, wanting it now and wanting to achieve it by doing the least possible work – in order to create and build their portfolios.

In the independent online survey conducted with over 1,000 Australians aged 18 to 28 years, 85.2 per cent who are purchasing a property or saving for a deposit within the next two years intend to make sacrifices in order to achieve their goal.

'Generation Y' and making sacrifices are not usually spoken in the same sentence but it seems this group of Australians are just as determined as previous generations to anchor a substantial amount of their financial future into property.

The fact that 70.1 per cent plan to purchase a property or save for a deposit within the next two years says enough about Generation Y's commitment to the market. Almost half of that 70.1 per cent (47.2 per cent) were intending to purchase, with the remainder working on their deposit.

With multiple answers allowed, the most common sacrifice was to cut back on spending (81 per cent) while 40.4 per cent planned to miss out on overseas trips. Next were: changing to a higher earning job (36.5 per cent) remaining in a current job (35.6 per cent), purchasing a less expensive property (33.8 per cent), and taking on additional job (33.5 per cent). 16.8 per cent will go so far as to uproot themselves by moving interstate / towns.

A significant percentage already own property, with 13.5 per cent currently living in their own dwelling (47.5 renting, 35.2 per cent living with parents and 3.8 per cent ‘other’). Not surprisingly, 93.7 per cent of these are committed to a mortgage.

In previous decades, that number would have been higher. Housing affordability is a big issue for this generation but it doesn’t appear to have much impact in deterring them away from the market. Property ownership – whether for the purpose of making money or making a home – is a goal that the majority of Generation Y is aiming for.

Article supplied by REIQ Journal

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