Financial services comparison site Finder conducted a cross-generational survey of 2,026 Australians about purchasing property, finding that 35 per cent of Millennials (aged 34 to 38) are looking to take advantage of falling house prices, compared to 16 per cent of Gen Xers and 4 per cent of Baby Boomers.
“There’s no reason Millennials can’t have their smashed avo and eat it too – especially in this current market,” Kate Browne, Finder’s spokesperson for personal finance, said.
“But being an opportunist requires planning. Boost your savings and get home loan pre-approval in place so you are ready to snap up a bargain when you see one.”
This finding paints a similar picture to those of The Australian Millennial Report 2019, which revealed that, Millennials are more focused on saving for property this year than last, with around 7 per cent indicating that they are living with their parents while saving for a house deposit. This is up from roughly 2 per cent last year.
The proportion of respondents who are renting while saving for a house deposit increased significantly from about 4 per cent last year to about 13 per cent this year, according to the same report, co-authored by Mark MacSmith and Tom McGillick.
However, similar proportions of Millennials expressed that they are not looking to purchase property (32 per cent) despite declining house prices or that the housing slump has not impacted their views on purchasing property (33 per cent), the Finder survey found.
Meanwhile, 49 per cent of Gen Xers and 74 per cent of Baby Boomers said they had no plans on buying property, while 35 per cent of Gen Xers and 22 per cent of Baby Boomers indicated that declining house prices had no impact on their views on buying property.
Overall, nearly one in 5 Australians, or 19 per cent, are interested in purchasing property as the market cools, while 50 per cent are not, and 30 per cent expressed no difference in home ownership aspirations, according to the Finder study.
“A housing market slowdown is a fresh start for those who had been priced out of the market,” Ms Browne said.
“At the same time, a lot of investors want to get in while prices are dropping and interest rates are low.
“Property is a long-term investment, and buying during a downturn could put savvy Millennials in a good financial position once the market picks back up.”
Finder’s top tips for Australians looking to purchase property is to factor in a buffer of 2 per cent to 3 per cent on top of their current home interest rate to be prepared for future rate hikes, and take into account other costs involved in purchasing property, such as building inspections, stamp duty and solicitor fees.