In an article I wrote for BrisbaneTimes, take away food is the big sacrifice Gen Y are prepared to make to get a property.
Sixty five percent of Gen Y buyers say they will eat out less and cut back on take away food so they can get a property but 43% will buy an investment property and rent it out according to research conducted by Mortgage Choice.
We have been told Gen Y is the generation that wants everything on a platter, yet the research reveals 47% would sacrifice a holiday and 40% are prepared to cut back on alcohol purchasers in order to chase the great Australian dream.
A new Bankwest survey found it takes the average first-home buying couple 4.1 years to save a 20 per cent deposit based on their joint income.
This is about two months less than it was a year ago but about five months longer than it took back in 2006.
However, the period of time to save for a 20% deposit varies between states. Using average incomes and house prices, in the Northern Territorty it takes them 4.6 years. Victorian 4.4 years, NSW 4.3years, Queensland 3.9 years, South Australia 3.7 years and Tasmania 3.4 years.
In regional areas it is a lot less according to Bankwest where it takes on average of 2.7 years to save the required deposit.
Despite an uncertain stock market and conflicting property market reports, it appears Gen Y see property as a worthwhile investment strategy even though 15% of Gen Y buyers say ‘I can’t afford to buy the home I want, so I’m taking the first step with an investment property’.
The Top 10 sacrifices Gen Y buyers are prepared to make to get a property are:
1) Eat out less and cut back on takeaway food
2) Cut back on general day to day spending
3) Miss out on a holiday
4) Cut back on alcohol related spending
5) Delay a vehicle purchase
6) Change jobs for higher income
7) Take on an additional job
Delay having children
9) Rent out one or more rooms in my home
10) Purchase a less expensive propertyWhat, if anything, would you sacrifice to get a property?
Kevin Turner | RealEstateTalk Host
Property Academy CEO Selling your home without an agent
[email protected] | Twitter: @RealestatetalkA sack of rice? (sic)
It is called budgeting, create your financial plan, work hard & save.
KevinTurner wrote:However, the period of time to save for a 20% deposit varies between states. Using average incomes and house prices, in the Northern Territorty it takes them 4.6 years. Victorian 4.4 years, NSW 4.3years, Queensland 3.9 years, South Australia 3.7 years and Tasmania 3.4 years.No love for WA Kevin?
Be interested in that figure if you have the number at your finger tips.
KevinTurner wrote:1) Eat out less and cut back on takeaway food
2) Cut back on general day to day spending
3) Miss out on a holiday
4) Cut back on alcohol related spending
5) Delay a vehicle purchase
6) Change jobs for higher income
7) Take on an additional job
Delay having children
9) Rent out one or more rooms in my home
10) Purchase a less expensive propertyOr you could just stay at home and mooch off the folks while you save a big deposit. A partner with similar ambitions can also be of a tremendous help – doubles the savings, halves the waiting time.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Delay having children
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