For a generation that’s constantly chastised by the media for boomeranging back to the family home, having a grandiose sense of self importance, and a raging sense of entitlement, Generation Y has a lot of positive attributes that work in their favour. They’re far more well-travelled than previous generations, enviable tech-savviness, access to a wealth of information, and I would argue, an edge over other demographics in mastering the property market.
Particularly Generation Y women looking to buy a house in Sydney.
This is a statement that might run counter to all the news articles you read. You know the ones that paint Generation Y as a group of lost, disenfranchised and professionally stagnant tumble weeds, destined to never own a home or get a job after university? Out of jobs, and out of the Sydney property market?
Social researcher Mark McCrindle recently blamed low wages growth as largely responsible for their inability to earn and save enough to buy a home. “We have seen a generation that has been shut out of property ownership and have lost the capacity to get property, which was the traditional Aussie dream,” he said to News Limited, painting a rather dire image. “Gen Y earners have seen their household incomes rise by around $5000 in the last two years while the retirees aged 65-plus have had income increases above $7000, even though they generally aren’t working. It’s a generation that can’t win — income growth should be one strength they have over the over-65s.”
We can’t predict when Sydney’s house prices will fall exactly, so will Gen Y ever catch a break?
Well, I say that Generation Y women have some core attributes which make them perfect property owners, despite dominance in the market by baby boomers and Gen Xers. And I’m not the only one.
Women’s social and economic power is on the rise, and ING Direct’s head of product Tim Newman points to an increase in confidence and buying power with women buying property.
Back in June of this year, he told the Herald Sun:
“Generation Y as a whole is very goal-oriented when it comes to career, finance and property aims,” Mr Newman said. “This isn’t necessarily something earlier generations of women have had the freedom to pursue.”
So how do they do it? How will Generation Y women get their first home loan?
How Generation Y women can approach the Sydney property market with a winning mindset and get their first home loan
They’re confident
Generation Y in general have a great sense of self-importance. And the key to succeeding in life? Confidence is one of those keys. Although it’s not enough to see you through every situation in life, confidence acts like a shield of armour against ruthless real estate agents and vendors out to overprice properties.
They have more savings
Sydney rents are one of the highest in the entire world, which sees 1 in 4 in their 20s opting to stay home with Mum and Dad to save. Because of this, Generation Y has substantially more savings. Suncorp’s 2015 Australian Savings Habit Report revealed that Generation Y save up to a whopping $533 a month on average! While 32% are saving for a holiday, 24% are saving to buy their first home.
They currently make up a quarter of mortgage settlements across the country
Generation Y women have their eyes on the property prize. In fact, research by ING Direct showed a 9 per cent increase in the number of Gen Y females with financial settlements in the past five years across Australia.
Gen Y women accounted for 14 per cent of mortgage holders in 2009 compared to 23 per cent in 2015. This means in 2015, Gen Y women accounted for almost a quarter of home loan settlements across the Australia. That’s impressive.
They know how to do their research
Generation Y have grown up with information at their fingertips. With Google and Siri at the ready, they know how to find out property prices, interest rates, how to improve their credit score, and how to apply for a home loan in just a few clicks. They’re not just tech savvy, they’re efficient in educating themselves about the Sydney property market. And when it comes to buying a home in Sydney, educating yourself is crucial to successful, happy home ownership.
They’re goal diggers
Generation Y have their eyes on a number of prizes, namely career targets and financial goals. And with the marriage rate on the rise too, a family home is also in Generation Y’s sights.
As you can see, there’s much to be said for Generation Y’s determination, perseverance and yes, misplaced sense of self-importance. And it might just help them buy a home in Sydney.
Like this post?
Check out my post on how to buy a home in your 20s.