The five strategies of young buyers: ME Bank

Earlier this week, Property Observer reported on a new survey from ME Bank that recorded 18% of respondents believing they would never be able to afford to buy their own home.

For people aged under 30 and women this figure rose even higher, to 26% and 21% respectively.

The survey also found that 51% of people expect rises over the next 12 to 24 months, with just 9% expecting prices to fall.

ME Bank general manager asset products, Luke Easton said that many first time buyers are now adapting different strategies in order to purchase a home.

When surveying respondents aged 18 to 29, one trend was clear. This bracket of buyers is keen to work harder, make cutbacks and try new things to get into the market.   

Here are the five strategies young buyers are considering:

1. 24% of young buyers are finding ways to save more to purchase property, double the national average of 12%
   
   
2. 20% are finding ways to increase their income, compared to 11% overall
   
   
3. 19% would choose a property based on eligibility for a first home owner grant
   
   
4. 14% would buy jointly with friends and family, compared with just 6% overall
   
   
5. 12% would change their expectations on size, quality or location, compared to 6% overall

Easton said that financial challenges are encouraging creative attitudes.

However, he warned against property speculation.

“Trying to pick the market is impossible and you’re better off focusing on what you can control – saving for a deposit,” he said.

“Similarly, investors would be wise to build their investment strategy based on long-term capital growth and ignore short-term price fluctuations”.