Move over smashed avocado and Insta-worthy holidays, because the most covetable goal for a lot of young Australians is to buy a property.
New research from Westpac found that the number one savings goal for those aged between 25 to 34 year old was a home or property.
Westpac analysed the data from customers who used their Westpac Life savings accounts and found that 70% of their millennial customers’ total savings was put away for a future home.
Ten times more millennials listed home and property as their number one savings goal than they did for holidays and travel, which was the number one savings goal for all other age groups, particularly over 55s.
Holidays and travel was a popular goal for younger Australians aged 18-24 as well, however a home or property was their second most popular savings goal, which shows that they are starting to plan for their future.
According to Westpac’s Head of Savings, Kathryn Carpenter, first home buyers are being diligent with their savings and digging deep to save for a home.
“Millennials are often depicted as a generation more focused on life experiences and living in the ‘now’. However, our research shows that many are in fact taking saving for a home deposit seriously and prioritising it above other goals including travel or lifestyle,” Carpenter said.
Westpac’s research highlighted that young people are not only saving for a home but that more people are starting to enter the market too. Westpac saw more first home buyer loans issued in March and April 2018 compared to the same period in 2017 and 2016.
A great time to be a first home buyer
More first home buyers may be entering the market because there are a lot of great reasons to get on board the property ladder at present. First home buyers can take advantage of generous grants and stamp duty concessions, as well as enjoy a record breaking period of low interest rates. Sydney and Melbourne property prices are also slowing down after a long period of high competition, making for much easier markets for young buyers to break into.