Gen-Y home-owners are dying breed

IT took a little help from his parents, but Generation-Y man Todd Webster managed to get into the property market about four years ago, and he is happy he did.

IT took a little help from his parents, but Generation-Y man Todd Webster managed to get into the property market about four years ago, and he is happy he did.

According to the latest Bankwest/Mortgage and Finance Association (MFAA) home finance index, an increasing number of people born between 1982 and 1995 have scrapped plans to buy a house and one in three believe they will never own one.

Bankwest Retail chief executive Vittoria Shortt said the results were sobering.

“We have never seen such pessimism amongst prospective first-time buyers throughout the past five indexes,” she said.

Mr Webster, 27, who with wife Michelle, bought at Tweed Heads South, admitted it had taken help from his parents to get into the property market.

“Mum and Dad helped us with the deposit and we saved up as much as possible,” he said, adding the couple had been “lucky” with their timing.

Mr Webster believed many in his generation were aiming too high when looking to enter the property game.

Lance Cotterill, principal of North Estate Agents, agreed, saying first home buyers should look at units or house-and-land packages.

“There are still units around for below $200,000 and you have got mortgage instalments that are better than paying rent,” he said.

“There is plenty of opportunity as long as they don’t expect too much.”

Tweed Economic Development Corporation chief executive Tom Senti said the Tweed Shire had enough land zoned residential to cater for its increasing population, but not enough well-paying jobs for young people.

“Housing affordability is a big issue that needs to be addressed at the grass-roots level, which is to create good, well-paying, jobs for the young people,” he said.

“The council has certainly got enough land zoned as residential, so the big challenge is employment for that younger generation.”
 

“Y” WOES

• More than half Generation Y (born 1982 – 1995) have cancelled plans for buying a home. Up 10 per cent on 2009.

• One in three believe they will never own their own home.

• More first home buyers are staying at home to save a deposit, but fewer are asking families for financial help.

Source: Bankwest/Mortgage and Finance Association

Originally published as Gen-Y home-owners are dying breed