Home Loan Broker in Rockingham Dispels Myth about Millennials being Priced out of Housing Market
Announcement posted by Smartline Rockingham 14 Jan 2015
Home loan broker for Smartline Rockingham provides surprising facts about millennials and the housing market.
Rockingham, WA, 14 January 2015 - According to many economists and observers, many in Generation Y, also known as “millennials,” are being priced out of the home buying market. Prices were at an all time high in September of 2014, making it more difficult for younger, would-be buyers to purchase their first homes. Many have gone so far as to blame investors for raising housing prices to a point where they are less affordable for millennials.
However, according to Justin Smith, home loan broker for Smartline Rockingham, the situation may not be as dire as many would like to believe. In a recent post on his company blog, Mr Smith debunked a few myths about millennials and property ownership.
The “Affordability Crisis”
Much has been written about an “affordability crisis” when it comes to buying homes in Australia. A Westpac survey showed that roughly one in three millennials felt that they would not be able to buy a home in their lifetimes. In the inner ring or CBD of Sydney, Melbourne, Brisbane, Canberra and Perth, this is true to some extent. However, the inner ring or CBD of a major city isn’t the only place to purchase a home.
Approximately 75% of Australians live in major cities or their inner suburbs. This is a lot of people and makes Australia the most “urbanised” country in the world. Homes are the most expensive in the inner rings and CBD’s of major cities because that is where the majority of jobs are. This leads to less supply and more demand for housing in those areas, thus raising prices.
Millennials and Home Ownership
Many millennials own homes but don’t live in them. The most common strategy seems to be renting in the CBD and purchasing a rental property in an outer suburb. While millennials are seen as not able to afford their own homes, for many renting is a matter of preference. They get to live the city lifestyle without spending $800,000 on a home.
The numbers say a lot about Generation Y. According to the 2014 Housing Affordability Sentiment Index, 53% of millennials already own a home. 23% of them have one investment property while 47% plan to purchase an investment property within five years. 37% of millennial homeowners purchased their first homes between the ages of 25 and 29. 9% purchased their first homes when they were 20 or younger.
The Future of the Housing Market
According to Mr Smith, there won’t be a better time to buy than now: “As prices continue to rise, it’s like every month that someone delays buying their first home costs them money. The median for the Perth market was $450,000 in 2009. This September, it was $540,000. We encourage those who can afford it to buy that first home now before prices rise again.”
Justin Smith is a home loan broker at Smartline Rockingham, which was formerly known as the Mortgage Gallery Rockingham. He specialises in home loans from his Rockingham office, serving Baldivis, Mandurah, Kwinana and many other Perth suburbs. To learn more, call 1300 958 730 or visit their website: http://www.mortgagebrokersrockingham.com.au/.
However, according to Justin Smith, home loan broker for Smartline Rockingham, the situation may not be as dire as many would like to believe. In a recent post on his company blog, Mr Smith debunked a few myths about millennials and property ownership.
The “Affordability Crisis”
Much has been written about an “affordability crisis” when it comes to buying homes in Australia. A Westpac survey showed that roughly one in three millennials felt that they would not be able to buy a home in their lifetimes. In the inner ring or CBD of Sydney, Melbourne, Brisbane, Canberra and Perth, this is true to some extent. However, the inner ring or CBD of a major city isn’t the only place to purchase a home.
Approximately 75% of Australians live in major cities or their inner suburbs. This is a lot of people and makes Australia the most “urbanised” country in the world. Homes are the most expensive in the inner rings and CBD’s of major cities because that is where the majority of jobs are. This leads to less supply and more demand for housing in those areas, thus raising prices.
Millennials and Home Ownership
Many millennials own homes but don’t live in them. The most common strategy seems to be renting in the CBD and purchasing a rental property in an outer suburb. While millennials are seen as not able to afford their own homes, for many renting is a matter of preference. They get to live the city lifestyle without spending $800,000 on a home.
The numbers say a lot about Generation Y. According to the 2014 Housing Affordability Sentiment Index, 53% of millennials already own a home. 23% of them have one investment property while 47% plan to purchase an investment property within five years. 37% of millennial homeowners purchased their first homes between the ages of 25 and 29. 9% purchased their first homes when they were 20 or younger.
The Future of the Housing Market
According to Mr Smith, there won’t be a better time to buy than now: “As prices continue to rise, it’s like every month that someone delays buying their first home costs them money. The median for the Perth market was $450,000 in 2009. This September, it was $540,000. We encourage those who can afford it to buy that first home now before prices rise again.”
Justin Smith is a home loan broker at Smartline Rockingham, which was formerly known as the Mortgage Gallery Rockingham. He specialises in home loans from his Rockingham office, serving Baldivis, Mandurah, Kwinana and many other Perth suburbs. To learn more, call 1300 958 730 or visit their website: http://www.mortgagebrokersrockingham.com.au/.