Milennials may have a reputation for throwing their money away on holidays and smashed avocado, but new research from Westpac has shown that saving to purchase a home or property is the number one priority for the younger generation.
Westpac analysed the data from customers who used their Westpac Life savings accounts and found that the number one savings goal for those aged between 25 to 34 year old was “Home and Property”.
The research found that 70% of millennial customers’ total savings has been put away for a future home. This is 10 times more than for holidays and travel, which was the most popular savings goal for all other age groups, particularly those aged over 55.
Holidays and travel was also the most common goal among those aged 18-24, however a home and property was their second most popular savings goal.
Westpac’s Head of Savings, Kathryn Carpenter, said first home buyers are being diligent with their savings and digging deep to save for a home.
“Millennials are often depicted as a generation more focused on life experiences and living in the ‘now’. However, our research shows that many are in fact taking saving for a home deposit seriously and prioritising it above other goals including travel or lifestyle,” Carpenter said.
The research also highlighted the increasing number of first home buyers entering the property market. Westpac saw more first home buyer loans issued in March and April 2018 compared to the same period in the previous two years.
It’s a great time for first home buyers to get a foot on the property ladder for a number of reasons, including low interest rates, stamp duty discounts and a cooling property market in the major cities.
If you’re looking to enter the market here are some quick tips:
- Find out if you qualify for a home loan. Do you know whether or not you’re eligible to take out a home loan? This is the first (and most vital) piece of information you’ll need before setting out on your property hunt and will help you get a good overall picture of where you sit financially.
- Grow your deposit. The more money you have saved away in the bank, the more options you’ll have. Work towards saving as much as you can so that you can avoid paying LMI.
- Arm yourself with information. Spend a bit of time everyday researching things like home loans and the local property market. Understanding a particular property market will help you figure out how much to offer on individual properties and allow you to understand all of the costs involved in the buying process.
- Get help from the experts. You don’t have to go on your buying journey alone! There are a number of professionals that can help you along the way from financial advisors and mortgage brokers to buyer’s agents and conveyancers.
- Be ready to make a move. It’s a good idea to have pre-approval organised so you have a solid idea of your borrowing capacity and are ready to make your best offer when you find a property you don’t want to miss out on.