A rise in the Australian housing market is expected this year since much of the young taxpayers are planning to use their tax refunds towards a mortgage or property deposit.
A research of the homeloans.com.au website found that young people in Australia are notably fond of the idea of putting themselves up in the property market. A quarter of all Australians will pay off a mortgage with their tax refund. More than 15% of the 18-24 year olds intend to invest their tax refund in a home deposit, which will intensify their positions in the housing game. Another 15% of them have already purchased a home and are planning to earmark these money for a reduction of their mortgage.
Only 5% of young adults think of using tax refunds for cars, residential cleaning services or shopping sprees. A third of them will save or invest the funds.
What is more surprising is the fact that all this happens in a time when home prices are increased by almost half, and became the highest of all time. From 2008 till now the home value has increased with the remarkable 42% and experts are pessimistic that an eventual market slowdown will roll in the near future. Surely not in the least in Melbourne or Sydney.
The rapid growth of the two biggest cities in Australia have brought to this rise in real estate prices, which makes the home affordability a huge concern of first home buyers. Studies show that Australians still prefer detached housing to apartments and units, which will continue to encourage growth in the field.
Real estate agents claim that home buyers are becoming more and more cautious with their money. People see the continual price increases and the decreasing affordability, which brought them to understand that it’s tough and they need to play safe. The 18-24-year-old demographic are not always in a position to buy when they contact a broker for the first time. But what is absolutely certain is that they are planning ahead.
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