YOUNGER Aussies are the most prepared to give up on life’s luxuries to buy their own home than the older generation, according to a recently released survey.
Despite their reputation for living for the moment, Generation Y are the most prepared to give up on life’s luxuries to buy their own home according to a newHousing Affordability Sentiment Index recently released by www.realestate.com.au
This goes against the grain of how many of us perceive what some call a “carefree generation.”
This inaugural survey that the sentiment towards housing affordability in Australia is relatively pessimistic.
In particular, Australians are struggling with the rising cost of living; mainly fuelled by negative sentiments towards bills and debt. However, there was a sense of optimism shown by respondents that in six months time their general financial health would be improved, with slightly higher rankings in the expectation section (comprised of future capacity and future affordability).
Clearly this negative sentiment is showing up in the property markets with fewer buyers currently prepared to take on more debt and some sellers still holding out for unrealistic sale prices. This standoff is causing more properties to be passed in at auction, while others languish for sale on the private market.
I can’t see this situation changing until well into next year when rising wages and increased affordability will bring owner-occupiers back into the market and rising rents encourage investors to return.
In the mean time savvy investors with a long term perspective can land themselves a bargain that could look very cheap when they look back at 2011.
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