Millennials are sophisticated, savvy, and about to make the property market boom. While 45% of under-35s in this study said they were concerned about their chances of homeownership, it’s important to know that it’s within your reach. Increasingly, older millennials are making it onto the property ladder as their careers and finances have the chance to stabilise. With some frugality and expert advice, you’ll be on your way to your first home.
Key Points:
- Saving for a deposit is the first and biggest hurdle between millennials and home buying
- Building is now just as popular (and affordable) as buying.
- First Home Buyers’ parents are more involved in the home-buying process.
- You can live out of the city and still have the same accessibility, at a lower price.
- “Rentvesting” is a growing trend for breaking into the property market.
Saving for a Deposit
Millennial dollars are delayed in going towards a home, with student loans and credit card repayments following young people into their 30’s. Throw in the millennial taste for instant gratification, and this makes saving for a deposit that much harder. But it’s not all bad news: once you save for the deposit, you’ve done the hardest part. From there you can look at getting a First Home Owner Grant to buy an affordable property or house and land package. Building your home will make you eligible for stamp duty cuts, too.
Building Over Buying
As the average home buyer is a millennial today, the definition of the dream home has also changed. With the availability of affordable home-building options, many millennials are opting to settle in a bespoke place perfect for their lifestyle, rather than moving into the past owner’s lifestyle. Across the board, most young buyers value entertainment spaces over larger bedrooms – in keeping with the increasingly social nature of the home.
Technology
For a generation that has grown up with technology at their fingertips, it’s no surprise that 1 in 3 millennials use online tools to track their spending. Technology is key for millennials and home buying. As this generation saves for their first homes, technology plays a big part in the house hunting itself. Millennials use mobile devices to search and view properties, as well as house and packages. Technology enables millennials the ability to visualise their new life, communicate with agents, ask questions and make offers.
Buying a House Jointly with Parents
Things weren’t the same when your parents were buying a home. More and more, millennials are involving Mum and Dad in the home-buying process, both in a financial and advisory capacity. This has meant that many more millennials are avoiding auctions, favouring private treaties instead. When the home or house and land package is listed with an asking price, this is a private treaty. The benefit of buying a house and land package is that you don’t have the stress of an auction, and have the opportunity to sleep on any major decisions and seek parental input.
Living Outside the City
For many millennials, the city lifestyle feels like it’s too good to leave. But often, having everything on your doorstep comes with a hefty price tag, and casting your net further afield can reap some wonderful benefits. Communities in the outer suburbs are booming, as 2016 Census data shows more and more Melbournites moving away from the city in recent years. What if we told you you could still have the cafes, the transport, the amenities, but at a fraction of the price? Slow down and reflect away from the city, without missing out on any of the entertainment.
Rentvesting
With apps making investment increasingly popular for millennials, the property market has not been immune to this change. “Rentvesting” is giving many young professionals the chance to jump on the property ladder in Australian cities. The trend involves renting in an area out of budget, while buying and renting out a more affordable property. Becoming a landlord and renter means you get to live somewhere that aligns with your lifestyle, while making gains in equity all the while! And if you’re dreaming big, building an investment property is a cost effective way of making even bigger gains in the market.
Conclusion
Home ownership is within your reach, just as much as a scrumptious cafe avo toast. At Savana, the cafes, schools, parks, transport and facilities are in easy distance. This means you can have that city convenience at a fraction of the price, and at an even smaller fraction of the pace.
As a boutique village address that offers an exceptional location and a true sense of neighbourhood spirit, it all comes together at Savana. You can start your new journey by purchasing land at Savana, so enquire today.
At AVID, we create places where people love to belong. To find out more about our developments in New South Wales, Victoria and Queensland and how you can invest in the home of your dreams, contact us today.