Most younger Australians are on the path to home ownership, even if they’re uncertain how to achieve their goal, according to a new survey.
An ING survey of 1,000 Australians aged from 22 to 37 found that millennials are not as free-spirited as some think and are prepared to make sacrifices to enter the property market.
When asked to describe themselves:
- 64 per cent said they were planners, 36 per cent said they were free spirits
- 76 per cent said they feel good saving, 24 per cent said they feel good spending
The survey also found that 38 per cent are currently saving for a deposit, while 20 per cent said they would start saving soon and 28 per cent said they planned to eventually do so. Another 15 per cent said they weren’t thinking about saving for a deposit.
Cutting back on luxuries
About half of respondents reported positive emotions about saving for a home deposit:
- Confident = 20 per cent
- Excited = 19 per cent
- Fine = 13 per cent
However, half reported negative emotions:
- Anxious = 27 per cent
- Overwhelmed = 16 per cent
- Disorganised = 4 per cent
The survey found that 24 per cent of those who are saving for a deposit aren’t making any sacrifices. For those who are making sacrifices, here’s where they’re economising:
- 57 per cent said they were cutting back on little luxuries, like going out for dinner
- 33 per cent said they were cutting back on big luxuries, like going on holiday
- 10 per cent said they were delaying a life event, like a wedding, honeymoon or having children
Most of the millennials who were surveyed accepted the need to sacrifice:
- 43 per cent said they were more than happy to make sacrifices to save for their own home
- 30 per cent said they were OK, because it’s a short-term sacrifice
- 7 per cent said they were indifferent
- 14 per cent said they were frustrated that they have to make a sacrifice at all
- 6 per cent said they were resentful that they’re missing out on other big life moments
Unsure how to move forward
The authors of the ING report concluded that younger Australians are prepared to make sacrifices to enter the property market, and believe that home ownership will deliver a sense of control and security.
“Millennials are not as free-spirited as we think. They are more likely to be planners, savers and family-oriented,” the authors said.
“Owning a home makes them feel good. But immediate gratification is hard to give up. That said, most are on the path to home ownership. But it’s a foggy, difficult path to walk. This is because few have a savings plan in place.”