Helping the Kidults
Helping the ‘Kidults’ New Ones on the Block
We’ve all heard of the ‘kidult’ syndrome where Gen Y are slagged by the media for buying both first homes and even investment properties while sponging off their parents. Yes, this is true in some cases but the reality is often silenced. It’s a derogatory term hence the slashed line in the title! A majority of 20 somethings are also working relentlessly while living at home with patient parents or renting in one place and exchanging the flash car for a bicycle. They are often smart when it comes to saving but at the same time, many are on the brinks of giving up. Around the auction ring, we see it where fierce competition, unsure financial limits and first home jitters takes it toll. We’ve compiled a plan of attack for first home buyers to successfully escape the rental cycle and stop the negative talking. We aren’t saying it is an easy process but it will be worth it.
1. Stop making excuses: Start saving now! A technique we find works well is setting up a separate account and having a regular savings amount going into the account. Exchange the cocktails or fancy dinners for nights in. Set up an account that’s fee free and call it home deposit.
2. See Sandra: See a Mortgage Expert to find out how much you can borrow. We highly recommend, Sandra Mallia from Loan Market. She has over 10 years experience, has won countless awards, keeps on top of the ever changing conditions and is so easy to talk to. Finding out how much you can borrow may in fact surprise you. Even though you may not be able to afford a home now, seeking Sandra will give you the answers to when the saving cycle for a property can end. Her appointment is free. Call: 9940 2610.
3. A Strict Deadline: Write down the goal for how much you want to save and put a reminder into your phone for the deadline as well as a piece of paper up somewhere that you look at every single day (perhaps on the fridge?) By 1st January 2015 I will have saved $____. A visual reminder is so much more powerful than you even think! Trust us on this.
4. Get PreApproval: You will need preapproval on a loan before bidding at auction or entering into a private treaty sale. Well, truth be told, you don’t legally require but it helps to relieve the stress by getting it.
5. Research: We can’t emphasise the importance of this enough! Attend auctions on the weekend. Bore your home-owning friends and real estate agent’s with endless questions. Find out the median prices of suburbs by clicking onto www.reiv.com.au and keep up to date with the news. Decide on an area and get to know its property market. Inside out.
Once You’re Ready To Secure That Block…
6. Plan Your Attack: You’ve found that house, now what? Work through as many potential outcomes as possible and decide what your reaction will be. How high am I willing to go? There may be curve balls thrown at you. What if the price rises substantially at auction? What is my limit? Ask yourself these questions to prevent emotional decision making.
7. Visit Us: Attend our How to Bid at Auction Information Evening where Award Winning Auctioneer and Compton Green Director, Adrian Butera will answer all of your questions and direct you for auction day. The next one is on the 26th August in our Williamstown Office at 29 Ferguson Street at 6pm. Book a seat by emailing [email protected]
8. Get A Property Inspection: This is another cost that you shouldn’t avoid! Once you have found the home, ensure that you get a property and pest inspection before committing to buy. A property inspection can highlight any structural faults as well as the presence of termites.
8. Bring Along Support: Don’t turn up to auction day on your own. Bring a smart friend or family member who also knows your limit (just in case you get caught up in the heat of the moment.)
9. Patience Is A Virtue: You may feel like you want everything now but be patient. Buying a home is important and you want the decision you make to be the right one so be clear about what it is that you’re looking for. If you’re lucky you might find your dream home in the first week but if you don’t then keep looking. Goodluck with the search!
Interesting Stats about Gen Y.
This age group is commonly referred to as ‘Lazy’, debt ridden and antisocial due to a phone obsession. The age bracket of this generation is between 1981 and 1994.
In defence:
- 89% of Gen Y property owners surveyed by realestate.com.au bought their first property before they were 30 years old and 9% purchased when they were less than 20 years old – a larger percentage than any of the other generations.
- In fact, 89% of Gen Y property owners surveyed bought their first property before they were 30 years old and 9% purchased when they were less than 20 years old – a larger percentage than any of the other generations.
- To reach their property goals many are willing to make big sacrifices with 66% saying they’d consider co-buying, 12% selling or considering selling valuables and 23% considering – or already working – a second job. The realestate.com.au was completed in July 2014. Source: www.realestate.com.au/blog/gen-yers-new-property-moguls
- This article is currently being blogged, twittered, facebooked, shared and emailed around so maybe we are technology geeks but it’s all for a good reason! We are really hard workers.
