First home buyers getting younger
A new survey has revealed that a majority of first home buyers are cracking the property market before they reach the age of 30.
Despite all the doom and gloom that property is too expensive, and of course popular opinion that young people, particularly those Gen Y’ers, want everything now and don’t know how to save, it appears aspiring property buyers are in fact knuckling down and getting themselves into the property market, sooner.
According to the Club Financial Services survey, 77 per cent of respondents said they purchased their first home before the age of 30.
Whilst a lot of young people struggle to save a deposit for a home loan, in between juggling rent and studies, Andrew Clouston, general manager of Club Financial, said it was also common for people in their 20s to live at home with their parents – a great way to save towards a home.
“With few outgoing costs they often have quite a high disposable income, making it the ideal time to get a foot up on the property ladder and our survey results show that many are doing that.”
On top of getting into the property market before they reach the age of 30, Club’s survey also found young Aussies are keen to kick start an investment property portfolio.
According to the survey, 35 per cent of respondents between 18 and 29 and 44 per cent of those under 40, had already started an investment portfolio.
If you’re dreaming of cracking the property market but aren’t sure where to start, it might be worth starting by identifying both your short and long term goals.
“Our advice to people in their 20s is to identify their financial goals, to ensure they are making decisions now that put them in a strong financial position in the future,” Mr Clouston says.
Short term goals (five years or less) may include a new car, a honeymoon, or an investment property, medium term might be owning your own home and longer term goals may include retirement and travel.
“Whilst some of these timeframes may seem a long way off, being able to plan for the short, medium and long term will make your financial goals far more achievable and ensure the younger generation remains financially savvy throughout life.”