A Closer Look at Millennials Attitudes to Property Investment
The latest research indicates that millennials are still eager to invest their hard-earned cash in bricks and mortar. But what does this tell us about their attitudes to property investment overall — and what are the odds they’ll be able to invest in the conventional way?
Millennials Are Starting to Buy Property
For the fourth year in a row, millennials are the largest group of homebuyers, with around 40% of new home owners under the age of 36. Whilst previously this segment has been regarded as unwilling or unable to invest in property, new data says otherwise. Yet there is no denying that times have changed since their parents’ generation — and many millennials with an interest in property are seeking out new ways of investing which don’t necessarily require them to go down the traditional routes which went before.
Millennials Are Saving Smaller Sums
For millennials hoping to tread the well-known path of attaining a mortgage on a property of their own, the stats are a little complex. Whilst many millennials cite a desire to buy — likely tired of the so-called ‘rent trap’ and accompanying fees — many have next to nothing saved for a down payment on their first property. What’s more, those who are making a conscious effort to save could also face a long wait, depending on the location they hope to purchase within.
Trends in Property Ownership Vary Worldwide
A study conducted by HSBC examined international trends in property ownership among the millennial age bracket, and found that the UK is one of the lowest developed countries when it comes to prioritising owning their own home. Only 31% of young people stated they had already bought a home, but despite this downturn, some 74% of millennials stated an intent to purchase within the next five years — though this still means they have the lowest future purchase intent of any of the countries in the study. There are many reasons for this, stagnant wages and skyrocketing domestic property prices are to name but two factors.
Millennials are Open-Minded about Property Investment
Millennials seem to be far more open to different ways of investing in property than their forebears, and this presents many great opportunities for both buyers and investment companies to come up with new and inventive ways of getting millennials firmly entrenched on the housing ladder — no matter how far off this goal may seem at present.