Almost a third of young Gen Ys will use their tax refunds to jump into the housing market or help pay of their mortgage, a new poll has revealed.
The results of a consumer poll by non-bank lender homeloans.com.au show that more than 15% of 18 to 24-year-olds planning to put their refund towards a home deposit. A further 15% said that they will use their tax refund to help pay off their mortgage faster.
A quarter had personal debt in their sights, while more than a third planned to invest or save the money.
Homeloans.com.au national marketing manager Will Keall says this is a reassuring result.
“This is the generation born after the 1990s and these results reflect their more prudent approach to life,” he said.
“We applaud that, because the pathway to housing affordability is significantly smoothed if people can approach a potential lender with a proven ability to repay debt. It also helps people to save for a home deposit if they can put the money they would otherwise pay on credit card interest repayments into the bank instead.”
However, Keall says the results do show that it isn’t all work and no play for young Gen Ys.
“This is also the group that more than any other has plans to travel, with more than a third telling us that they would use their expected refunds for a holiday,” he said.
“Debt reduction really stood out as a major concern among respondents, and it’s obvious that people are cautious with their money. However, that’s not to say they also aren’t planning to treat themselves.”
According to the poll, less than 5% of all respondents prioritised putting money away for buying an investment property. Although, almost one in five (19%) said they would put their refund towards home renovations, up from 13% in in 2014.