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About half of brokers believe the biggest issue facing their under-35 clients is the ability to save for a deposit.
According to a recent poll on The Adviser, 47 per cent of respondents said that Gen Y struggles to save enough money to enter the property market.
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Another 34 per cent said house prices were the biggest hurdle for Gen Ys, while 13 per cent said Gen Y found it hardest planning for their long-term future.
Bernard Salt, one of Australia’s leading demographers, said Gen Y’s desire to save for property is low on its list of priorities.
“Owning property is all well and good, but I think many of them – certainly upper- and middle-class Gen Ys – would see it as a negative tie. They want to remain footloose and fancy-free,” he said.
Mr Salt said there is a turning point around the early- to mid-30s when Gen Y starts to view property investment the other way.
Real estate guru Tom Panos also told The Adviser that property investment becomes a more significant goal for Gen Ys as they get older.
“As each year goes by, the level of interest and appetite that a Gen Y has towards acquiring a property and having something that they’re able to call home increases, because as people get older, they like certainty and security,” he said.
Peter Andronicos, general manager of eChoice, said the federal government’s decision to increase the retirement age had already forced many Gen Ys to start thinking more long term.
“We get a lot of new first home buyers – that makes up about 40 per cent of our business – and it’s evident to us that they’re looking for a long-term strategy,” he said.
Strategies for winning Gen Y business will be revealed in greater detail in next month’s issue of The Adviser magazine.
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