More of Australia’s new generation of first home buyers (FHB’s) are living with credit defaults, which could be a major contributing factor in country’s ‘dim’ first home buyer figures - with Gen Y facing credit lockdown in increasing numbers - says a credit repair specialist .
According to a recent report from credit reporting agency Veda Advantage, the number of credit defaults amongst Gen Y has grown 5.3% over the past three years to 60% of the share of all credit defaults.
Gen Y appears to have the lion’s share of defaults across all account types: telecommunications, credit cards, utilities and personal loans.
Figures released yesterday by the Australian Bureau of Statistics confirm FHB commitments as a percentage of total owner occupied housing finance commitments fell to 14.9% in December, 2012 from 15.8% in November 2012.
CEO of MyCRA Credit Rating Repair, Graham Doessel, says goals for owning property may be far out of Gen Y’s grasp.