Young Australians dubbed ‘Generation Y-Rent?’
Gen-Y Australians are avoiding renting property, preferring to go straight from the family home to home ownership where possible, recent data shows.
Specialist lender RAMS Home Loans surveyed 1000 of its mortgage holders aged less than 30 years old. Of the respondents, 71 per cent claimed to have never rented a property, while 76 per cent admitted to staying at home longer than they would have liked in order to avoid paying rent for the purpose of saving for a home loan deposit.
RAMS Home Loans’ CEO, Melos Sulicich said there has been a long standing trend towards extended living in the parental home before leaving to rent.
"What we are increasingly seeing is younger Australians using this time to save for their own home instead and avoiding renting. It’s become a common financial strategy.”
The trend towards extended living at home before moving straight to home ownership is strongest in Sydney, Perth and Melbourne where housing affordability concerns are most prominent.
Aiming at younger Australians living at home, RAMS has created the “Fast Track‟ home loan, which is designed so first home buyers can buy their first home sooner with parental help and avoid paying mortgage insurance.