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AN increasing number of young West Australians – some not even 21 – are buying properties.
Posted by   |   February 13th, 2015   |   Categories: Industry News

AN increasing number of young West Australians – some not even 21 – are buying properties.

Latest statistics show the number of homeowners aged 30 or under has jumped 60 per cent since 2008, with almost 50 per cent of the state’s first-homebuyers now aged 30 or under. That is compared to just 31 per cent six years ago, according to new statistics from Mortgage Choice.

The data also showed one in five homebuyers was now aged 25 or under.

Experts said a new trend had emerged with young people living at home longer in order to skip the rental market and save for a deposit.

Peet Limited managing director Brendan Gore said “Gen Z” buyers were among the company’s most active market sectors.

“We are seeing very young people who not only want to live in their own home, but are keen to start a property investment portfolio very early, have a plan and are starting to implement it,” Mr Gore said.

Momentum Wealth managing director Damian Collins said a cultural shift was behind the rise of young homebuyers.

“I think 25 years ago when people bought at age 20 it was because they were marrying and settling down,” he said.

“Now they are realising the advantage of entering the market early and viewing their first property with the eye that it won’t be their last.”

East Perth real estate agent Tracy McDonagh said she had helped a number of young people aged 21 and under buy homes in the past six months, some who had saved since they were teenagers.

Real Estate Institute of WA president David Airey said there were many advantages to entering the market early.

“I think people in WA recognise that we have a robust housing market that, over the long term, will always be strong,” he said.

“As a consequence, young people are keen to be homeowners so they can secure an affordable home in an area they like before it’s beyond their reach.”

But Financial Counsellors Association of WA executive Charles Brown warned young people were more vulnerable to economic downturn.

“Home ownership can be a great thing, but there are risks involved and, for every young person, saddling themselves with a mortgage at age 20 might not always be the best move,” he said. “We are expecting a downturn in the WA economy and those jobs in the resource sector are high paying because of their high risk.”

Mr Brown said young people with high paying jobs in the resource sector should think carefully before getting large home loans.

“It can be quite shocking for a young person to go from a six-figure salary to surviving off Centrelink payments,” he said.

Mr Brown said the FCAWA helpline had counselled a number of people who had ended up in debt after taking out multiple home loans.

RateCity product director Peter Arnold said he thought young people should be wary of a “get in now before it’s too late” mindset.

“Interests rates at are a historic low at the moment, but that doesn’t mean they will stay low,” he said.

New goals: Jordan Schilling, 20, has almost finished building his first home in Golden Ba

New goals: Jordan Schilling, 20, has almost finished building his first home in Golden Bay. Picture: Matthew Poon Source: News Corp Australia

 

Savvy purchase gets ball rolling

 

WHEN Jordan Schilling first enquired about a home loan, his bank didn’t believe the money he’d saved was really his.

Despite his detailed transaction history, Mr Schilling said the bank was sceptical a 20-year-old had been able to save $40,000 on his own.

He eventually got his loan and will move into the $415,000 house and land package home in Golden Bay next week.

The FIFO worker spent a year saving his deposit after he decided he needed to stop “wasting his money”.

“My parents kept telling me I was earning a good wage at a young age and that I should think about buying a home, but I don’t think they actually thought I would do it,” he said.

Mr Schilling said he had already started thinking about his next property and his new goal was to own 10 homes by the time he turned 25.

He said he did extensive research before buying to ensure he was making a savvy purchase. “I put a lot of thought into not only what I would like but what would attract other people if I wanted to sell or rent it,” he said.

 

Liz Harries, 21, and her partner Brandon Dyson, 21, have bought their own home in Middle

Liz Harries, 21, and her partner Brandon Dyson, 21, have bought their own home in Middle Swan. Picture: Stewart Allen Source: News Corp Australia

 

Travel, parties take back seat

 

FLIGHT attendant Liz Harries had to curb her own travel itch so she could buy her own home.

She and her partner Brandon Dyson, both 21, bought their home in Middle Swan for $397,500 in September last year. It took the pair about two years to save the $40,000 deposit.

“There were a few points when we really started to get the travel itch, but we kept remembering we’d have all the time to do that after we got the home,” she said.

Ms Harries said living with her parents had been the key to saving.

Shauna Boreham and Jarred Allum will own their first home before either of their parents. Growing up in rental houses, Ms Boreham, 20, and Mr Allum, 21, knew they wanted to buy as soon as possible. The couple are currently building a 3×1 home in Alkimos after buying a 210sqm block of land for $199,000 late last year. Despite people trying to talk her out of buying so young, Ms Boreham, an Australia Post worker, said: “The way I see it – the sooner I start paying it off, the better.

“The second we both turned 18, instead of going out and drinking and partying, we started trying to save at least $100 or $200 a week.”

 

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