Generation Y are making their mark on property. They are now not the generation that spend but the generation that are using their cash to purchase their own homes or investment properties.
We have been helping a lot of them purchase their first property as their home, focusing on new apartments and, house and land packages.
With the First Home Owner Grant (New Homes) being $15,000* payable on settlement for new properties under $650,000 the timing has never been better especially with the added bonus of not paying stamp duty. Gen Y are saving close to $28,500 on a $400,000 purchase. Please remember that Grants do vary from state to state.
They are also prepared to look beyond their first home to the future and are interested in how they can turn their first home into an investment property and upgrade their home.
Here is a quick look at how this can work. A $360,000 home loan will cost them $1,950 per month. In the future they can use the equity in this home to upgrade into another home.
If their income is about $80,000 with rental income of $400 a week and interest rates at 5% interest only after all expenses and tax deduction the first property holding cost would be estimated at $30 per week.
Generation Y have a lot to gain from the property market right now. If you would like to know more about this topic or you would like to suggest a topic for me to write about then please contact firstname.lastname@example.org
*This example is for NSW. Each state may have different grants and stamp duty concession.