Generation Y, also known as millennials, are the group of people born between 1980 and the early 2000s. As is often the case with generational groups, millennials have their own set of values and ambitions that differentiate them from their predecessors, according to First National Real Estate chief executive, Ray Ellis.
These values frame their world view and influence a range of their financial decisions, running the gamut from travel to buying real estate, and especially their first home. In reality, millennials are enthusiastic about about investing in property and founding an investment portfolio to start their climb on the property ladder.
‘Contrary to popular belief, millennials are buying their first investment property at the average age of 25’ says Mr Ellis.
‘This sharply contrasts with baby boomers, who on average purchased their first home nearly two decades later at the age of 45. Millennials commonly invest first, while renting. By comparison, the motivation to buy houses one to two decades ago was to have families in, not found a property investment portfolio’.
Moreover, the number of millennials who buy multiple properties is on par with older generations. According to a Domain Consumer Insights study, 17 per cent of millennials own two or more properties. All of this research implies that millennials are getting on the first rungs of the property ladder fairly early. However, it's important to note that 26 per cent of millennials don't fall under this category - they are still living in their parental home.
‘While some millennials are embracing purchasing property, quite a few still exhibit some anxiety. A report compiled by BDO and Co-Op from a survey of 18-29 year olds found that 87 per cent think their generation will never own a home outright’ said Mr Ellis.
‘Yet, 72 per cent of them feel that it's important to buy a house as soon as they can. In light of this, a whopping 93 per cent of millennials have money saved, according to the report's findings. This also shows that this group is savvy with savings, with over 65 per cent of them committed to long-term savings goals. This approach has resulted in average savings per person of more than AU$8,000 or more’.
These positive habits might be contributing to why so many of them are in fact ascending the property ladder at fairly young ages.
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Issued by: First National Real Estate. For further information contact:
Stewart Bunn, National Communications Manager, First National Real Estate on
1800 032 332 or 0413 624 317