Newspaper article Coffs Coast Advocate (Coffs Harbour, Australia)

Defying the Stereotype; Generation Y Is Proving to Be More Financially Astute Than Many People Think

Newspaper article Coffs Coast Advocate (Coffs Harbour, Australia)

Defying the Stereotype; Generation Y Is Proving to Be More Financially Astute Than Many People Think

Article excerpt

THE "live now, pay later" mentality often associated with Generation Y is being defied, according to the results of a recent national survey.

The findings of the Mortgage Choice 2013 First Time Property Investors Survey show that younger generation Australians are shaping up to be savvy investors who are aware of the benefits of buying into the property market and are often willing to give up aspects of their lifestyle to fund their purchase.

Of the 1000-plus Australians surveyed who were planning to buy their first investment property in the next two years, Gen Y made up more than one third (34%) of the respondents.

Interestingly, for two-fifths of these Gen Y respondents, an investment property will be their first-ever property purchase.

"Gen Ys appear to be financially switched-on and are focusing on property investment, with 40% of the respondents in this age bracket willing to forgo any available First Home Owner Grant on their first property purchase in favour of buying an investment property as opposed to a home," Head of Corporate Affairs for Mortgage Choice Belinda Williamson said.

"Meanwhile, the other 60% of the Gen Y respondents already own their first or subsequent home and are now branching out to make an investment property purchase."

Key motivations

With financial security high on their agenda, Gen Ys were motivated to purchase their first investment property by the need to set themselves up financially for the future (75% of Gen Ys), followed by the perception that there is more benefit in investments such as property, than there is in the share market (47%) and rounding out the top three was the notion of planning for their retirement (43%).

"This younger generation of investors is looking for financial freedom and they see more profit in bricks and mortar investments," Ms Williamson said.

Greatest challenges

The decision to purchase an investment property can see some buyers having to overcome a few hurdles. …

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