Gen Y is forgoing rents to move straight into property ownership, it has been claimed.
A new study by RAMS Home Loans has surveyed 1,000 mortgage holders below the age of 30, and found 71% of respondents claimed to have never rented a property. The survey also showed 76% of respondents lived at home "longer than they would have liked" to avoid paying rent and to save for a home deposit. RAMS CEO Melos Sulicich said the trend shows Gen Ys are spending an increasing amount of time in the parental home rather than entering the rental market.
"What we are increasingly seeing is younger Australians using this time to save for their own home instead and avoiding renting. It's becoming a common financial strategy," he said.
The survey indicated that the trend of spending an extended amount of time living in the parental home before moving into property ownership was strongest in Sydney, Perth and Melbourne. RAMS claimed this was due to the cities being the least affordable capitals.
Can you afford to buy in this suburb? Find out how much you can borrow
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out