At the beginning of the year, the WA Government announced the First Home Owners Grant would be jacked up by $5,000. So how has this played out among Millennials?
Nicheliving’s Director, Ronnie Elhaj says that in the past similar announcements saw a spike in Generation X buyers. This time, he has not seen a significant reaction among Millennials.
So why is this? Are they fulfilling the well-worn stereotype for their generation? Are they choosing to be pampered by parents instead of buying? Or devoting themselves to living in the moment and pursuing pleasure, while being totally unconcerned about the future?
Ironically, many of these descriptions could easily have been used to describe previous generations. Each generation has to meet its own challenges and no one can dispute that Millennials (aged 18 to 34) have to find solutions to questions that no previous generation has had to answer.
Despite this, the reality is that Millennials are really not that different. Guess what – when it comes to buying or renting property, location counts to Millennials as well. A recent Nicheliving questionnaire completed by a group of Millennials shows that yes, they do prefer to rent property close to where the action is rather than buying a home far from where they want to be. However, they all saw themselves purchasing their own home in the future. And if buying a property in their preferred location cost no more than renting it, they would buy. Interestingly, some were attracted to home ownership because they believed it would give them greater freedom to do what they wanted with their home.
If the past is anything to go by, the motivation to buy a home is at its strongest once a couple chooses to marry or live together. If peers are buying this can also be a strong influence. It’s the same with low interest rates and a property market that’s running hot. Of course, there are some who see investment in property as a good bet. Many of them will buy and rent out a property while staying at home or renting in their favoured locations.
One common thread from the survey results was that they had not accessed information on the financial implications of renting vs buying. There are a couple of questions Millennials should be asking right now. Is it cheaper to rent or buy? Is it possible to buy an affordable new home without having to move to the far north or south of Perth? Home ownership should fit in with the way you prefer to run your life, and there are many ways that owning a home can be of more benefit to Millennials than renting.