Not everyone is unhappy that house prices around Australia are falling.
Savvy Millennials are looking to take advantage of falling house prices.
A new survey by Finder shows 35% of Australians aged 34-38 believe they have something to gain from recent price drops: that’s 1.9 million Gen Ys buoyed by the prospect of a bargain.
Kate Browne, Finder’s personal finance expert, said savvy Millennials see the downturn as an opportunity to create wealth.
“There’s no reason Millennials can’t have their smashed avo and eat it too – especially in this current market,” she said.
“But being an opportunist requires planning. Boost your savings and get home loan pre-approval in place so you are ready to snap up a bargain when you see one.”
Overall, one in five Australians (19%) are interested in buying property amid recent price drops.
The survey of 2,026 Australians found the property slump had no effect on the purchase decisions of 30% of people, while the remaining 50% are not looking to buy property at this time.
“A housing market slowdown is a fresh start for those who had been priced out of the market,” she said.
“At the same time, a lot of investors want to get in while prices are dropping and interest rates are low.
“Property is a long term investment and buying during a downturn could put savvy Millennials in a good financial position once the market picks back up.”
The research shows just 4% of Baby Boomers are more likely to buy as the major markets cool.
Have recent property price drops made you think about buying in 2019?
|Baby Boomers||Gen X||Gen Y|
|I’m not looking to buy
property at all
|No effect – I feel the same||22%||35%||33%|
|Yes – More likely to buy||4%||16%||35%|
One of the big mistakes these homebuyers will make
While sellers have an agent protecting them, looking after their interests and advising them, the problem is that most home buyer’s go solo.
Sure they’ve read some articles and done research on the Internet, but this is likely to be their largest purchase ever.
And their emotions will cloud some of their decisions.
You wouldn’t go to court without a solicitor on your side – would you?
While many of this new wave of home buyers will have a good head on their shoulders and many will have a good working knowledge of the home buying process, what they probably don’ t have, however, is perspective.
If, how and when you buy a home are all decisions that will have major consequences.
That’s why it’s important to have the same protection on your side that the seller has.
That’s why it’s critical to engage a professional buyers’ agent to represent your interests.
For more information on buyers’ agents, read the article “The home buyers’ secret weapon.”
Of course there are many other issues for home buyers to consider.
If you want all your questions answered consider buying a great book “The Australian Guide to Buying and Selling Your Home” or consider engaging Metropole Property Strategists to help level the playing field and acting as your buyers’ agents
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