Being older doesn’t automatically mean you are wiser.
A new study reveals how Gen Ys are outsmarting their baby boomer counterparts when it comes to the property market.
The findings from renovation and design platform Houzz demonstrate that more than half of Australian homeowners took on a home renovation in 2015, with a similar portion planning to do so in this year.
The main reasons for renovating versus buying a new ‘perfect’ home comprise wanting to stay in the same land/lot, longing to remain in their current neighborhood or because it is more affordable.
However, if you excavate down into the data, you will find that the age group most likely to renovate because it is the most reasonable option is Gen Y.
In this generation, more than a third cited affordability as the top reason for renovating versus buying.
According to Houzz’s managing director Jason Chuck, this is confirmation of how intellectual young buyers are being when it comes to buying into the property market.
“I think specified the current real estate climate they are reasonably active when it comes to home upgrades and this allows them to be more open minded to the types of homes they are eager to consider,” Mr. Chuck told.
“I think they’re thinking a lot more proactively around their home and I think they are putting a lot of consideration into the fact they are trying to find homes they can invest in and that they believe are going to be a strong return on investment.
“We are hearing from this generation that they recognize the homes that can be renovated are a much better return on investment. It is something they can devote in overtime as well.”
This is in contrast to the older demographic who emerged as less open minded and more likely to “try and stay in the same place”.
“We do find that 85 per cent of millennial is hiring proficient help for their renovation projects. Some of the most popular trades that they enlist help for are electricians, plumbers, and carpenters,” Mr. Chuck said.
Before you say, pshaw, it will by no means happen, stop and think. It already has, about four decades ago, when baby boomers – the last generation of this size – took both the political and the economic status quo, twisted it on its head and shook it. The catalyst for what is happening today is pretty different – an economic crisis rather than a war – but it’s far from impossible that the combination of political and economic stressors could end up creating radically new rules of the road.