Brokers looking to boost business take note: generation Y is a lucrative market, provided you know how to talk-the-talk.
Australian Broker Online spoke to two leading brokers on how focusing on the lifestyle of 20 to 30-year-olds is key to winning them over.
Veteran Paul Gollan
believes the traditional values of stability, wise investments and a place to live comfortably should be thrown out the window.
"I think generation Y place a big premium on lifestyle and many may be inclined to rent where they want to live and purchase an investment property where they can afford. They're perhaps more cautious than Gen X about taking on large amounts of debt, especially in a sluggish real estate market," he said.
Melbourne broker Colin Sheppard - himself a member of Gen Y - said appealing to the impulsive "dreamer" was key.
"The Dreamer wakes up one morning and needs to buy a house, because all his mates are buying. For the Dreamer it’s all about lifestyle, status and an extension on how they want the world to view them and less about necessity or looking towards the future.
"The positive is that Generation Y isn’t afraid to take risks and make a buying decision. What they lack in experience, they make up for in confidence. This will ensure that, unlike older generations, aggressive investments by Generation Y could lead to some smart investing from a young age and a healthy retirement strategy by default," he said.
So how do brokers translate this into a written deal?
"I think you need to market with their priorities in mind; travel, food, entertainment and a rich social calendar and how property can help them leverage funds for these quicker than savings can. You need to show them how they can use this investment to become financially independent," said Sheppard.