Despite the view of older generations, Gen Y are not just living for the moment and have joined the ranks of savers as they endeavour to get on the property ladder.
And almost three out of five of these first time home buyers are changing their spending behaviour and are trying to save more money to go towards a house deposit.
Most of these first time buyers appear slightly more optimistic about their chances of joining the ranks of homeowners with 37 percent of Gen Y purchasers feel their financial situation has improved in the last 12 months.
MFAA CEO Phil Naylor said only a third of Gen Y’s surveyed were worried about job security, down form 41 per cent in July 2010.
“For those with job security, a flattening in house prices and competitive mortgage deals are increasingly spurring first time buyer intention in the real estate market,” Mr Naylor said.
Bankwest Head of Specialist Banking Ian Rakhit said: “The national savings rate has pushed through 10 percent and it seems that young buyers putting money aside for a home deposit are part of this trend.”
“This could be one of the reasons for current sluggish consumer spending trends,” he said. “Given that prices are higher and government grants lower, it may be a while yet before these extra savings match the level of first time buyer activity seen in 2009.
“However, the signs are more positive for this segment of the market.”
However, highlighting that it still remains a struggle for many aspiring property owners to buy their first home:
- Nearly three-quarters (73 percent) are worried about the level of debt they will be committed to when purchasing a property, compared to 63 percent recorded in November 2008, before the latest upswing in East coast property prices.
- More than one-third (36 percent) don’t think they will ever get to buy a property compared to only 22 percent in November 2008.
In line with previous surveys, only a quarter (25 percent) of first time buyers think that the Federal Government is doing enough to help them, compared to 37 percent in May 2009.
*The survey polled more than 1,100 people across Australia and is the eighth Index taken since 2004.