Millennials are not giving up on buying their first home
DETERMINED millennials are far from giving up on their property dreams and instead many are working hard to save up a house deposit. But it’s leading to one major problem.
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DETERMINED millennials are far from giving up on their property dreams and instead many are working hard to save up a house deposit.
Soaring house prices in some capital cities has pushed some aspiring homeowners out of the home ownership race but the new ING Millennial Home Buyers report has revealed 38 per cent are stashing cash towards a house deposit.
But it’s not coming easy, the report quizzed 1000 millennials aged 22 to 37 and 27 per cent said saving a house deposit was a cause of anxiety.
ING’s head of retail banking Melanie Evans said millennials are “incredibly prepared” towards getting a foothold on to the property market.
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“They know that starting to save and search for a home means that they have to make changes to their spending and savings patterns,’’ she said.
The average amount an ING millennial first homebuyer customer put down as a deposit in 2017 was $87,000, while the report found millennials believe they need to save $76,000 to break into the property market.
Registered nurse Jessica Hew, 29, and her partner Ian Warburton, 34, a plumber, last year moved back in with Ms Hew’s mother to fastback their ability to save a deposit, paying $200 in rent instead of $570.
And she said her mother is prepared to chip in to help them get into their first home.
“We went through all our bank statements and went through all the unnecessary things that we spend money on and made a very strict budget,’’ Ms Hew said.
The pair plan to buy a two-bedroom apartment in Sydney in the second half of this year and Ms Hew’s mother will go guarantor on their property while also contributing a portion towards the deposit.
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Data from financial comparison website RateCity found the average Australian median property price is $553,000 and if customers saved $200 a week it would take them 9.7 years to achieve a 20 per cent deposit of $111,000.
The site’s spokeswoman Sally Tindall urged hopeful property buyers “to get started straight away”.
“The longer you have to save the easier it will be but you have to make some big changes if you want to get that deposit,’’ she said.
The report also found despite many millennials stashing cash a majority (63 per cent) don’t have a savings plan.
sophie.elsworth@news.com.au