Updated: Jan 14
I think we can all agree that we all make a list of things or goals we strive to achieve especially when we hit a certain age. The list may include finishing a degree or buying a car or even purchasing property for the first time. But looks like millennials are finding it very difficult to buy a property according to reports. The number one reason? The cost of living. According to the Australian Millennial Report last year, the most important issue right now is how people are really struggling to invest in property brought by so many different factors.
Just recently, the Australian Millennial Report surveyed a total of 1200 millennials across Australia regarding the concerns they have right now or the issues they find important to address. Apart from the cost of living, the economic condition and the housing affordability are both real issues they face right now. There is also the matter of actually saving up for it. In the past, it seems like this is much easier to do but right now, that doesn’t seem to be the case anymore. Traditionally, after finishing university the next step is to look for a job and land one instantly if you’re lucky. Unfortunately, this is not an assurance that your plans will go just like you expected it to be. According to experts, showing up on a daily basis at work does not guarantee progress in the economy because the nation is going through a more serious problem when it comes to job insecurity. And because of this, Millennials who are planning to invest in property is struggling to make ends meet nowadays. The report states that older millennials or those in the age group 30-36 are concerned about the cost of living compared to the younger ones. Studies revealed that the cost of living now in Australia has reached a worrying trend. This could still be going on in the next five years for millennials in their 20s.
Studies also show the Millennials view success based off of personal wealth, which makes them feel that they need to purchase property incredibly important. Buying property at their age is something that we have seen before. Just like the previous generation, the new generation wants the same thing as their parents. However, the situation now is totally different and focusing on property investment is not that easy anymore.
The studies also showed that there are certain territories where Millennials are much more optimistic than others. For instance, Millennials in Victoria and Northern Territory are more positive about attaining the goal of purchasing a property. While those in Queensland and NSW are not that positive about it. A lot of Millennials right now even choose to move back to their parents in order to save more for their property deposit. If you think about it, it’s a smart thing to do but it just goes to show that saving up to meet your goal of buying property is no longer that simple anymore.