The Covid-19 pandemic has delivered a blessing in disguise for young Australians, putting home ownership within reach.
The virus has slowed down the real estate industry and reduced demand from overseas investors, meaning prices have come down nationally.
New research from online bank ING showed that this slowdown has made buying a home more achievable for nearly half of Australian millennials.
A third of millennials even said they’ll purchase a home within the next one or two years.
“Millennials are being savvy by taking advantage of record low interest rates, government assistance and a weakened housing market to get on the property ladder,” said ING head of home loans Julie-Anne Bosich.
Young Australians are adjusting their expectations to get their foot in the door of the housing market. Half of those surveyed said they would consider city fringe and outer suburban areas, and 22 per cent said they would buy a smaller property.
“What this research suggests millennials and Australians in general haven’t given up on the great Australian dream of owning their own home, they’re just re-thinking how they go about getting there and re-evaluating where they might want to live,” Bosich said.
Millennials making sacrifices
Contrary to the generational stereotype, the research showed millennial Australians were willing to make lifestyle sacrifices to make home ownership a reality.
Half of the respondents said they would curb personal shopping, 42 per cent would reduce dining out, 28 per cent were willing to forego drinking and 21 per cent said they would cancel their gym membership.
Remarkably, 24 per cent even said they would date less to save more money.
Many young Australians used the coronavirus lockdown period to get financially ahead, with 59 per cent moving their travel budget into a savings account, 37 per cent taking on a side job and 36 per cent moving back in with their parents.
Working and playing from home has made millennials realise fast internet is an essential utility, with 40 per cent saying that’s the most important factor in a potential new home.