New data seems to have confirmed the government’s First Home Loan Deposit Scheme (FHLDS) is helping millennials achieve their home ownership aspirations – a subset of the population proven to be passionate about securing themselves the ‘Great Australian Dream’.
Over 75% of the scheme's applicants have been aged between 18 and 34, with 34% falling into the 25 to 29 bracket within that.
According to Housing Industry Association (HIA) chief executive of industry policy, Kristin Brookfield, the trends the data revealed in addition to the general rise in optimism around getting into the property market are “encouraging” for several reasons.
“A large number of applicants, including millennials, are looking to buy outside the major cities of Sydney, Brisbane and Melbourne,” she explained.
“This suggests that people are starting to think outside the box (and the capital cities) when they think about buying their first home.
“The house price cap in these locations is around $400,000 on average and, even then, the data shows most borrowers are seeking approval to buy houses below that maximum price.”
Brookfield feels there is “no doubt” the enthusiasm with which first home buyers have embraced the scheme will encourage the government to at least consider increasing the number of places made available in 2021.
However, according to a survey conducted by financial comparison site Canstar, it's just 3% of Australians that feel the FHLDS is a “bad idea” given its 10,000 spot limit.
Further, of the over 2,000 Australians surveyed, just 20% felt the scheme was a negative for any reason.
The largest portion of this group, around 10%, attributed their scepticism not to limited participation, but to their belief the initiative encourages first home buyers to overcommit.
Fresh research from Bankwest has illustrated how committed young Australians are to fighting for home ownership.
More than a quarter of those surveyed (27.1%) said they’d delay having children in order to afford their own home.
In a “blow to the stereotype”, more than half of the millennials surveyed said they’d sacrifice little luxuries (57.7%), experiences (56%) and big-ticket items (55.3%) to get on the property ladder, with over 20% communicating they were even willing to give up basic necessities.
Despite property price and affordability concerns, the age group was among the most optimistic when it came to feeling home ownership is an achievable goal.
“These results are promising and paint a very different picture of young Australians to the one we usually hear,” said Bankwest GM of personal and third-party banking, Donna Dalby.
“This is not a bunch of carefree kids ignoring the future for an indulgent moment; this is a group of people who have financial goals they want to achieve and are willing to sacrifice big to do that.
“Home ownership may be a daunting prospect for some aspiring homeowners, but we know there are options available to those who are willing to make choices or trade-offs."