Generation Ys are typically regarded as living for the moment, and not interested in savings and investment. By contrast, the study found that saving for a home loan was high up on the agenda for recent graduates, and second only to paying off debts.
"Purchasing a home is the top priority for more than a quarter (27%) of recent graduates. With the help of appropriate products, they would consider entering the property market," says Peter Hall, managing director for Genworth Financial, Australia and New Zealand.
Of the total pool of graduates surveyed, just 14% lived in their own homes. Of those that did not, 18% expected to purchase property within the next 12 months while a significant 50% would 'ideally' like to purchase a property over the next 12 months.
What is holding these graduates back from breaking into the property market?
Difficulty in saving for a deposit (48%) and high property costs (39%) were the two most prevalent factors in preventing recent graduates from buying property. The results highlight the need for lenders to develop products to facilitate those who lack a savings history, but who have strong future income potential, into home ownership.
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