26% of Young Australians Expect to Never Buy Property
Young Australians today are finding it increasingly harder to get their foot on the property ladder. With the ever-increasing property prices pricing more and more people out of the market, a number of Australians under the age of 30 simply believe that renting is the only option for them. However, there are some that are taking action and using various tactics to help them reach their property goals.
A recent survey conducted by ME Bank surveyed 1,000 Australian adults, of which 26 per cent of those aged 18-29 believed that they will never be able to afford to buy their own home. When reviewed for adults of all ages, this dropped to 18 per cent.
However, more importantly of those younger Australians between the ages of 18 and 29, 24 per cent were found to be finding ways to increase their savings, compared to 12 per cent of overall adults.
The survey also found that 20 per cent of the younger Australians were also finding ways to increase their income, compared to 11 per cent of overall respondents.
One such method younger Australians are utilising to get on the property ladder is to buy jointly with friends and family and the survey showed 14 per cent were open to doing this compared to 6 per cent of the overall respondents. Buying jointly means you don’t need to raise as much capital, but it means you get to own a proportion of a property to get you started.
They were also more open to change and compromise and 12 per cent would be prepared to choose a different size apartment, or compromise on the location or quality, whilst only 6 per cent of the overall respondents were prepared to do this.
It doesn’t really matter too much if this property is not in your desired location, or it doesn’t tick all your boxes, you should think of this as a stepping stone and an investment to get you from A to B – where you are now to where you want to eventually be. As long as you buy sensibly in a growing area then you should be able to make capital gains.
Even if you are on a lower income, buying a property is still possible; it just takes a lot more planning and saving. Buying a property should be on everyone’s must buy lists as there are plenty of benefits attached to it, especially if you buy new; however you just have to be more realistic with your expectations and find alternative ways to save a deposit.
Published on 26th of May 2015 by Marty Stanowich