Approximately 88 per cent of Millennials are looking to purchase a home to feel more secure about their future, according to a new Millennial Homeownership Report commissioned by ING.
The research, which surveyed 1,000 Australians aged between 22 and 37, also revealed that 61 per cent of first home buyers (FHBs) acknowledge that they may have to purchase a home in a less established location (outside major metropolitan areas) in order to achieve their home ownership aspirations.
According to the survey, 57 per cent of Millennials are cutting back on their spending in order to save for a home, with 61 per cent of respondents acknowledging that their first home would be in a less established location.
“Our research shows that Millennials are living for today, but are also planning for tomorrow,” ING’s head of retail, Melanie Evans, said.
“Millennials are often unfairly pictured as only living in the here and now, but they want what generations before them wanted: the security and financial stability that owning a home offers.
“Millennials are thinking about their future. They understand that owning a first home might mean purchasing in an unestablished area, taking a longer commute or prioritising practicalities over
struggling to buy in inner city areas that are perceived to be more urban.”
However, the research also found that 61 per cent of Millennials are unaware of how much they need to save for a home loan deposit, as more than a third (38 per cent) look to purchase a home within the next three years.
Moreover, of the respondents that claimed they knew how much they needed to save, $76,000 was considered the average deposit needed to obtain a home loan.
Ms Evans observed that in 2017, ING found that the average deposit required by FHBs was $135,000.
“[It’s] evident that they need help on how to go about saving for a deposit, with many unaware of how much they need to save,” Ms Evans said.
[Related: Government incentives fail to attract FHBs]