Credit lockdown contributing to dim first home buyer figures

by AB13 Mar 2013
“The older portion of Gen Y should be collectively entering the property market, but it seems more are suffering with five years of credit defaults and unable to even get a mobile phone plan, let alone a home loan.”

Doessel says education and advocacy is the key to helping Gen Y out of the credit crunch because they’re ‘only a product of the credit environment’ they were born into.

“There is a real lack of education around credit issues and credit reporting and this has been a problem for some time. Many Gen Y’s had credit thrown at them in their younger years, pre –GFC and now they are feeling the ramifications of credit overload.”

Furthermore, he says, there’s been a ‘noted lack’ of consistency in credit reporting, which has led to a number of inaccurate and unfair credit defaults placed on consumer credit reports.

“It is high time that consumers and their advocates insist on accurate credit reporting if we are going to have any chance of moving the housing industry forward.”

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  • by Positive Broker 13/03/2013 10:41:13 AM

    I can confirm this. The majority of young clients I see (under 25) have some form of credit issue. Usually a telco or utility default for a few hundred dollars. Unfortunately these clients usually need LMI so it is very difficult to get a loan even if they do have personal loans or credit cards up to date. The quick answer is for lenders to ignore the default. Maybe positive credit reporting will help but I would prefer to see telcos and utilities banned from veda. More often not these are not financial defaults but a clear dispute or misunderstood contract.

  • by Papery 13/03/2013 5:20:10 PM

    AGree, but so many of the younger ones too easily disregard their credit responsibilites, especially that pesky mobile phone bill! Kids today need to take responsibility & commitment more seriously!