Are Millennials changing the Property Market?
Mysteriously called the Generation Y, Millennials are people born in the period between the mid-1980s and the early 2000s. Their experience and way of life differs from those of the earlier generations and they deploy specific strategies to get on the property ladder. We are witnessing a surge of young real estate owners and investors, a trend that is a breath of fresh air on the housing market.
Black and white
Millennials have reached an age when they are becoming quite active as customers. Many have well-paid jobs and are searching for attractive urban areas with lucrative returns. The amount of budget they put towards housing is impressive overall, and this group constitutes the majority of first-time buyers.
However, not everything in the garden is rosy. After the housing crisis, the unemployment rate of young people is still high, and student debts are skyrocketing. Furthermore, the housing market is a challenging environment that requires some focus and discipline. Striking the best deal does not come easy, and often making a loan or renting is the only option.
To deal with these problems, Millennials arm themselves with modern technology know-how and powerful gadgets, and invest a lot of time to research the market before bidding and making offers. They proceed with caution, and strive to find affordable investment properties or ones to settle down. Some are distrustful towards banks and have learned much from the mistakes of the previous generations.
Hence, they are more sophisticated and smarter than their parents when it comes to buying property. The overload of information is an issue, though, and this leads some to outsource the purchasing process. Reaching out for help and hiring a real estate agent is something that makes things easier indeed.
For example, Millennials make a considerable share of first time home buyers in Australia. Some even buy multiple properties and think like long-term investors. But, if you are looking to sell your house in Australia, you need to consider the best way to tackle conveyancing issues. Hiring a professional is advisable because legal matters can be a tough nut to crack.
Note that Millennials also have some specific lifestyle requirements. The vicinity of restaurants, cafés, and shops, for example, is obviously not that important for elderly people, but it is a decisive aspect for youngsters. They feel comfortable in downtown areas with a plethora of opportunities for entertainment and recreation.
Homes are expected to be technologically advanced and well-equipped. The visual appeal and design of the living space is another crucial feature, because Millennials want a customized space that reflects their taste. Hence, homeowners have to throw in some serious perks if they are to attract them to the suburbs.
The game has changed
Many buyers in this age group are aiming to build a property portfolio at a young age and do not hesitate to jump into the housing market. They put a great deal of effort to overcome obstacles like debt burden and make the best of the shabby economic climate. Embracing modern urban life, the bulk of young homeowners wants more bang for their buck. Hence, generation Y is not a renter generation as some claim, but the one that could be a game changer in the housing market.
Zoe Clark is real estate and home decorator enthusiast from a land down under. She has extensive experience working with Millennials on designing their dream houses. You can find her on Twitter.