Tag Archives: Gen Y

How do millennials feel about climbing the property ladder?

How do millennials feel about climbing the property ladder? Generation Y, also known as millennials, are the group of people born between 1980 and the early 2000s. As is often the case with generational groups, millennials have their own set of values and ambitions that differentiate them from their predecessors.

These values frame their world view and influence a range of their financial decisions, running the gamut from travel to buying real estate, and especially their first home. So, how do millennials feel about investing in property and potentially beginning a portfolio by climbing the property ladder?


The Domain Consumer Insights Study found that, contrary to popular belief, the average age at which a millennial becomes an investment property owner is 25. This is in stark contrast to baby boomers, who purchased their first home nearly two decades after the age of 25.

“The idea of buying an investment property and renting at the same time is now much more commonly accepted, whereas probably 10, 20 years ago you bought your house to have your family in,” explained Jennifer Duke, editor of the Domain Review.

Moreover, the number of millennials who buy multiple properties is on par with older generations. According to the study, 17 per cent of millennials own two or more properties. All of this research implies that millennials are getting on the first rungs of the property ladder fairly early. However, it’s important to note that 26 per cent of millennials don’t fall under this category – they are still living in their parental home.


While some millennials are embracing purchasing property, there are still a fair amount who have some anxiety regarding the subject. A report compiled by BDO and Co-Op surveyed 18-29 year olds and found that 87 per cent think their generation will never own a home outright.

Yet, 72 per cent of them feel that it’s important to buy a house as soon as they can. In light of this, a whopping 93 per cent of millennials have money saved, according to the report’s findings. This also shows that this group is savvy with savings, with over 65 per cent of them committed to long-term savings goals. This approach has resulted in an average savings per person of more than AU$8,000 or more.

These positive habits might be contributing to why so many of them are in fact ascending the property ladder at fairly young ages.

Can Renting Be Better Than Buying?

Rent or Buy?

Current market conditions, coupled with growing concerns over housing affordability, are causing uncertainty for home buyers who are wondering whether they should continue to rent or commit to buying their own home. 

It all comes down to what suits individual’s personal and financial situations best. Renters and buyers should consider which will be best for their net wealth and cashflow over their lifetime and seek good professional advice.
Renting offers great flexibility, is often a cheaper alternative to buying, especially in the inner city areas particularly favoured by Gen Y-ers who want that urban lifestyle close to where they work and monthly rental payments will usually be less than a mortgage repayment for a comparable property along with maintenance costs, repairs, rates and insurance bills which are the responsibility of the property owner. 

However, buying a property means you are able to put your own personal stamp on the property or make it reflect your individual style and design preferences, and eventually you will own your own property and no longer need to find monthly repayments. 

With advice and assistance from a real estate agent, who has the necessary knowledge, experience and skills to understand the market, its trends and its weaknesses and opportunities, the right decision can be made.