Media Release

How falling house prices could make Millennials rich

      • 35% of Millennials are looking to benefit from property slump
      • One in five Aussies interested in buying property right now
      • What to consider before sealing the deal

15 April 2019, Sydney, Australia - Savvy Millennials are looking to take advantage of falling house prices, according to Finder, Australia's most visited comparison site.

A new survey by Finder shows 35% of Australians aged 34-38 believe they have something to gain from recent price drops: that's 1.9 million Gen Ys buoyed by the prospect of a bargain.

Kate Browne, Finder's personal finance expert, said savvy Millennials see the downturn as an opportunity to create wealth.

"There's no reason Millennials can't have their smashed avo and eat it too – especially in this current market," she said.

"But being an opportunist requires planning. Boost your savings and get home loan pre-approval in place so you are ready to snap up a bargain when you see one."

Overall, one in five Australians (19%) are interested in buying property amid recent price drops.

The survey of 2,026 Australians found the property slump had no effect on the purchase decisions of 30% of people, while the remaining 50% are not looking to buy property at this time.

"A housing market slowdown is a fresh start for those who had been priced out of the market," she said.

"At the same time, a lot of investors want to get in while prices are dropping and interest rates are low.

"Property is a long term investment and buying during a downturn could put savvy Millennials in a good financial position once the market picks back up."

The research shows just 4% of Baby Boomers are more likely to buy as the major markets cool.

 
 

Have recent property price drops made you think about buying in 2019?

Baby BoomersGen XGen Y
I'm not looking to buy property at all74%49%32%
No effect - I feel the same22%35%33%
Yes - More likely to buy4%16%35%

Source: Finder

 
 

What to consider before you seal the deal

  • Future rate hikes - While we're in a historically low-rate market at present, you should always factor in a buffer of 2-3% on top of your current home loan interest rate to accommodate for future rate hikes. It's not something everyone thinks about at the time of purchasing property, but it's a crucial consideration.
  • What's happening in the local area - Consider how close the home is to public transport, schools and shops. Also, check for plans of urbanisation to assess its potential – a new shopping centre, park or increased public transport options could add value to your home.
  • Additional costs - Many first home buyers can get caught up in the overall sale price and forget to take into account all the other costs involved with buying a house. From building inspections, to stamp duty and solicitor fees, there's plenty to consider – and budget for. Then there's removalist costs to get your home set up.

###

For further information

Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About us

Every month 2.2 million unique visitors turn to Finder to save money and time, and to make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by two Australians: Fred Schebesta and Frank Restuccia. Since launching in 2006, Finder has helped Aussies find what they need from 1,800+ brands across 100+ categories.

We continue to expand and launch around the globe, and now operate in the United States and the United Kingdom. For further information visit www.finder.com.au.

Ask a question
Go to site