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.
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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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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# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 25 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. Lendi Group Pty Ltd, which is the ultimate holding company of the Aussie and Lendi businesses is owned by numerous shareholders including; banks such as CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, the Lendi founders and employees, and a number of Australian institutional investors and sophisticated investors including UniSuper.
*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. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
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. Top rates include lenders who are on our panel and are then defined by the circumstances provided by the borrower.
The Lendi Group Pty Ltd, which is the ultimate holding company of the Aussie and Lendi businesses is owned by numerous shareholders including; banks such as CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, the Lendi founders and employees, and a number of Australian institutional investors and sophisticated investors including UniSuper.
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