Gen Y aim for nest egg, not a nest

Photo / Thinkstock
Photo / Thinkstock

Members of Generation Y are putting aside aspirations of owning a dream home and instead are looking to enter the market through an investment property.

A survey by home loan provider Mortgage Choice found 43 per cent of respondents aged 30 and younger are prepared to forgo the first homeowners grant offered in Australia and other concessions in an attempt to boost their incomes through renting out a potentially appreciating asset.

"Many Gen Y respondents recognise building a nest egg rather than building a nest may better suit their income and needs at this early stage of their lives," said Mortgage Choice spokeswoman Kristy Sheppard.

The survey of 1060 people buying their first investment property in the next two years found 77 per cent of Gen Y respondents were making lifestyle sacrifices to achieve their goal.

That compares with two-thirds of Gen X and baby-boomers.

Gen Y sacrifices include eating out less (64 per cent), cutting back on day-to-day spending (64 per cent), missing out on a holiday (47 per cent), cutting back on alcohol spending (40 per cent) and delaying buying a vehicle (28 per cent).

For Gen Y, the biggest concern in the next year is interest rates, while for Gen X it was other cost-of-living pressures such as utility bills. The management of the economy by the federal government was the primary concern for baby-boomers.

- AAP

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