A survey by comparison website Finder has found 35 per cent of Millennials – which total 1.9 million Australians – think the current market decline has paved the way for them to enter the market.
The survey, which polled 2,026 Australians, found that 19 per cent of Australians overall would be interested in purchasing property, while the current decline had no impact on 30 per cent of Australians, and 50 per cent are not looking to purchase property at the moment.
Kate Browne, personal finance expert at Finder, said this is an opportunity for these Millennials to find wealth in the current downturn.
“There’s no reason Millennials can’t have their smashed avo and eat it too – especially in this current market,” Ms Browne 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.”
“A housing market slowdown is a fresh start for those who had been priced out of the market,” Ms Browne 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.”
What Millennials need to think about before diving in
Young investors looking to find success in the market should take heed of the following tips from Finder:
Future rate rises
Although the interest rate has remained at an all-time low, and is expected to decline further, Finder suggested to factor in a buffer of 2 to 3 per cent on top of the home loan interest rate to try and prepare for any potential scares from a rate rise in the future.
When looking at any property, check its location in relation to public transport, schools and shops, as well as any plans for urbanisation, like new shopping centres, parks or public transport options, as they all have the potential to add value to a property.
Those looking to purchase their first investment property can get caught up in all the excitement and forget to accommodate the extra fees when purchasing a house, like inspections, stamp duty and solicitor fees.