While millennials may have a reputation for wanting to live it up amongst the hustle and bustle of our inner cities, a new survey has found that that may not be the case.
According to the Millennial Homeownership Report conducted by ING, many millennials are willing to make sacrifices such as living further away from an inner-city area if it means they can get a foot on the property ladder.
It was revealed that 60 per cent of survey respondents would be willing to buy in a spot that increases their daily commuting time. A suburb’s “hip” factor isn’t necessarily important to millennials either. The report found that 61 per cent of respondents would be willing to invest in new, unestablished areas instead of trendy hotspots.
And what kind of homes are millennials interested in? It looks like a large, family home is still on most millennial’s wishlist, with many saying that they would “most likely” buy a three or more bedroom house (42 per cent), as opposed to a studio apartment (just 3 per cent).
But where are all the millenials in the property market?
Saving up for a first property can be tough, but many millennials are aware they need to make sacrifices to get into the property market. In the ING report 73 per cent of respondents said that they feel happy or content with making the sacrifices when the goal is to own their own home.
The issue doesn’t seem to be with intention, but with not having clear savings goals in mind. The report found that just 37 per cent of millennials had some kind of savings plan in place, and of those, only 57 per cent had a concrete savings strategy with a specific monthly or weekly savings goal.
Adding to this, 61 per cent of millennials said they weren’t sure how much they needed to save, including 40 per cent who reported to be actively saving.
A few tips to help first home buyers get into the property market faster:
- Find out how much you need to save by researching the property market and talking to lenders and mortgage brokers.
- Talk to a financial advisor to establish a clear savings plan.
- Pay off debts to increase the amount you can borrow.
- Eliminate everyday luxuries to save faster.
- Take advantage of first home buyer benefits.
Overall, if you’re looking to get into the property market the best thing you can do is get good advice from the start. Talk to lenders, financial advisors and real estate agents to figure out how your borrowing capacity compares to property prices.
For advice about buying your first property in the Mudgee property market contact McGrath Central Tablelands.