A new report has revealed 78 per cent of Gen Ys still believe buying a home as soon as possible is preferable to renting.
According to the 2015 Future Leaders Index, 18 to 29-year-olds remain doggedly committed to home ownership despite feeling financially frustrated.
The report said those in cities experiencing the most dramatic price increases are actually the biggest advocates for owning a property.
“With low interest rates continuing to drive up house prices, young Sydneysiders feel pressured to buy a property now,” it said.
The Index shows Gen Ys' property craving is caused by several factors:
• ‘I can make easy money’ – the current boom suggests it’s easy to make through property
• ‘If I don’t, I’m going to be left out’ – if everyone else is doing it, I should to
• ‘Waiting only makes the payments worse’ – the repayments just get bigger by procrastinating
• ‘Interest rates keep coming down’ – making a mortgage perceptually much more manageable as time goes on
• ‘Australian property is guaranteed, isn’t it?’ – Gen Y have only ever really seen house prices rise.
The Index also revealed how much parents are finding themselves bankrolling the property dreams of their children.
It stated that there is serious financial engagement between Gen Y and parents, as parents are becoming ‘the real bank of yes’.