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New ways in: How millennials are cracking the property market

We recently surveyed 1,000 Australians on their home ownership outlook and discovered some really interesting insights into how the property dream, goals and strategies differ between the generations.

Millennials are switching strategy

What we found was younger Australians still believe property is a good investment but they’ve had to adjust their attitudes and look for new ways to get into the market.

For millennials, property is now about simply ‘getting on the ladder’ rather than securing and owning the ‘forever home’ outright.

The research showed only 38% of 18 to 34 year olds surveyed can afford to buy property in the area they grew up, compared to 52% of 35 to 54 year olds and 53% of the over 55’s.

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A move to rentvesting

Consequently, younger Australians are more likely to consider ‘rentvesting’ or buying an investment property in an area they can afford while renting in another area where they want to live.

Nearly half (48%) of 18 to 34 year olds and 46% of 35 to 54 year olds surveyed say they would consider rentvesting compared to just 28% of those aged over 55.

Furthermore, younger Australians are least optimistic about home ownership with only 44% of 18 to 34 year olds surveyed believing they will ever own a property outright, compared to 59% of 35 to 54 year olds and 67% of the over 55’s.

“The house price growth we’ve seen over the last ten years has clearly buoyed the attitudes of older Australians while taking a toll on the aspirations of the younger generations and those yet to break into the market,” says David Hyman, co-founder and managing director at Lendi.

“With higher price points for entry level properties, particularly in Sydney and Melbourne, it’s critical first home buyers do their research not only on the property itself but on their finance options,” says Hyman. “Interest rates might be at record lows but you still need to shop around to make sure you don't end up paying more than you need to if you want to be mortgage-free sooner.”

*Online survey of 1,000 Australians (aged 18+), conducted February – March 2018.

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Tags: first home buyer, home loan, first home owners grant

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Important legal stuff

COMPARISON RATE WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.
Lendi is the trading name of Lendi Pty Ltd, a related body corporate of your licensed credit assistance provider, Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence Number 442372). We will never sell your email address to any third party or send you nasty spam, promise.
EXAMPLE: This example is current as at 20th October 2016. A Click Loans Online Principal and Interest Loan of $150,000 over 25 years has monthly repayments of $767. This is calculated based on the interest rate of 3.69%, comparison rate of 3.69%, upfront fees of $0 and annual fees of $0.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
Lendi is a privately owned and operated Aussie business. Our mission is to provide Aussies with the right experience when choosing a home loan from our panel of major and non-bank lenders including Click Loans which is a wholly owned subsidiary of Auscred Pty Ltd and a related body corporate of Auscred Services, your credit assistance provider. Although Lendi compares over 1600 products from over 30 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 40% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. We have an independent and founder led board.
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