First Home Buyers On The Rise

Posted on 12/07/2018  
First Home Buyers On The Rise

New data from Westpac shows an increase in the number of first-home buyer loans issued compared to the same period in 2017 and 2016.

The data also showed that Millennials are increasingly saving towards home ownership, above other financial goals such as travel or lifestyle.

Around 70% of Westpac’s customers aged 25 to 34 are saving for a home, which is 10 times more than those saving for travel. It’s the most common savings goal for the age group.

The Westpac information correlates with other figures showing rising buying activity by first-home buyers, notably in New South Wales and Victoria where first-timers are helped by state government incentives and concessions.

Westpac head of savings Kathryn Carpenter says Millennials are being careful with their savings and are striving to buy a home.

“Millennials are often depicted as a generation more focused on life experiences and living in the ‘now’,” she says. “However, our research shows that many are, in fact, taking saving for a home deposit seriously and prioritising it above other goals including travel or lifestyle.”

The Westpac data also reveals that home savers are starting even younger, with 18- to 24-year-olds already starting to save for a home, but holiday and travel are still more popular for that demographic.

“Our data shows reaching 25 appears to be a key tipping point for customers moving from thinking about saving for a home to seriously saving for one,” Carpenter says.

Across all other age groups, holiday and travel is the No.1 savings goal, particularly among the 55+ age group.

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