Gen Y Do it Alone in Hunt for Mortgage
Gen Y home loan holders are no longer borrowing money from their parents to buy their first home, it seems. Just over a quarter (26%) of Gen Y respondents to the 2012 National Savings and Debt Barometer, compiled by RaboDirect, said they would need assistance from their parents to purchase a house or apartment. This number was 35% just a year ago. The increase in confidence from first-home buyers comes thanks to falling interest rates and improved affordability.
The survey has also found that 30 per cent of baby boomers expect to retire with a mortgage, compared with 14 per cent of Gen Y borrowers. “It has been a tradition in this country to expect to retire with the family home paid off and increasing in value,” said Renee Amor from RaboDirect. “Our survey findings contradict this expectation and are of real concern in an environment where housing values are slipping and our population is ageing.