Are Young Buyers Pressured To Own A Home

Survey: Young buyers are ‘pressured’ to own a home

By Realestate.com.au

Source:https://www.realestate.com.au/news/survey-young-buyers-are-pressured-to-own-a-home/

For first home buyers trying to get their foot in the door, saving for a large deposit, meeting growing house prices and winning at auction mean younger Australians are feeling the pressure more than most.

A new survey conducted by Unikorn Commercial Property found that more than 55 per cent of the 1000 people surveyed believed there is too much pressure on younger generations to buy their own homes.

Millennials were the biggest demographic to feel the pressure, with three quarters of those aged 25-34 feeling the pressure to buy a home.
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Younger Australians are feeling pressured to buy a new home and enter the market.

A third of the respondents surveyed believed the pressure existed because home ownership was spruiked as ‘The Great Australian Dream’, with half of older respondents admitting it was the leading cause of angst.

Another third of respondents believed the pressure came from home ownership being a lucrative investment pathway, with many feeling like they were ‘missing out’ if they didn’t invest in the market right now.

Unikorn Commercial Property Founder Helen Tarrant says a lot of younger Australians are being pressured into buying a home by their parents.

“The Great Australian Dream” previously enticed buyers to own their own home, however property prices have made it unobtainable for many younger people.

“If you can get over the ‘frenzy’ and pressure that you feel when it comes to property, you can then actually make smart investment choices,” Ms Tarrant said.

“While buying a home straight off the bat might be the goal for first-time buyers, realistically it might not be affordable. So instead, seek out other opportunities to get on the property ladder – like commercial property – which will be more affordable, alleviate ‘buyers’ pressure and actually put positive income back into your pocket, making it easier to work towards owning your own home one day.”

Ms Tarrant says that many first-time investors don’t necessarily always have the big cash deposits needed to pursue their dream homes right away.

Commercial properties can often be a better investment decision to enter the market, enabling an investor to start their portfolio.

There are four major tips to alleviate some of the pressure for first-home buyers or younger buyers entering the market:

1: Find Alternative Goals

Instead of buying a property, there are many other ways to save and invest strategically.

Ms Tarrant invested in commercial property ten years ago, and has enough passive income to retire due to her investment decision.

“If you are starting out and you want an alternative strategy then commercial property could be an alternative for you instead of chasing the Australian dream of traditional home ownership.”