You know all of the clichés about Millennials – coming into their 30s, still living at home, changing jobs every 5 minutes, they have 2 or 3 degrees….mostly in the arts.
But what do they do when they want to grow up and buy a property?
Millennials are left with little choice but to join the housing market later in life than older generations due to the market prices, particularly in Sydney and other capital cities, beginning to rocket into “unrealistic” territories. This is creating a situation in which Millennials have to adopt new strategies to get themselves into the market.
Some use the traditional method – save what you can, buy where you can.
With median house prices in Sydney now moving past $1 million, and other capital cities following closely, this traditional method is becoming less of a viable option for first home buyers. This is seeing buyers moving further afield, with some making purchases in areas outside of Sydney like Wollongong and the Central Coast.
With interest rates at all-time lows and the RBA not looking like making a change anytime soon, the biggest positive for millennials is that, right now, money is cheap.
However, not all millennials go down the traditional path.
Some Millennials seem to be onto a winning formula, according to many real estate agents across NSW, with older millennials renting in areas they normally couldn’t afford to buy and investing in property elsewhere. They then have those properties re-valued quarterly, and use the capital gain to invest in additional properties.
The biggest challenge for anyone entering the property market, particularly in the metro markets, is to save a deposit. With an investment in a real estate portfolio it becomes much easier to create the necessary situation to achieve the property you desire.
With so much information at their fingertips and being the first generation that is truly digital, perhaps millennials are a lot smarter about real estate than we give them credit for.
Despite the challenges they are finding different ways.
