Generation Y is putting aside their aspirations to own their dream home and instead are looking to enter the market through an investment property.
A survey by Mortgage Choice found 43 per cent of respondents aged 30 years and younger are prepared to forego the first homeowners grant and other concessions in an attempt to boost their incomes through renting out a potentially appreciating asset.
"Many Gen Y respondents recognise building a nest egg rather than building a nest may better suit their income and needs at this early stage of their lives," Mortgage Choice spokesperson Kristy Sheppard, releasing the 2011 First Time Property Investors Survey.
The survey of 1060 Australians, who were purchasing their first investment property in the next two years, found 77 per cent of Gen Y respondents are making lifestyle sacrifices to achieve their goal.
That compares with two-thirds of both Gen X and baby boomers.
Gen Y sacrifices include eating out less (64 per cent), cutting back on day-to-day spending (64 per cent), missing out on a holiday (47 per cent), cutting back on alcohol spending (40 per cent) and delaying buying a vehicle (28 per cent).
For Gen Y, the biggest concern in the next 12 months is interest rates, while for Gen X it was other cost-of-living pressures such as utility bills.
The management of the economy by the federal government was the primary concern for baby boomers.
These reports come as it emerges that Gen Y will make up a third of the workforce in the next three years.
Employers will be forced to become more tech savvy in order to engage Gen Y workers, and "old school" bosses sitting above these digital "natives" better be ready, says Allison Cerra, vice-president of marketing and communications for Alcatel-Lucent in the Americas.
"There are different expectations they (Gen Y) bring to the workforce and one is their technology habits," Ms Cerra told BusinessDaily during a recent visit to Melbourne.
"They are accustomed to taking technology adopted in the home and expecting it in either the campus environment or the workforce."
Ms Cerra says they are rapidly gaining the power to re-make their work environment in their own image.
She says that not only is Gen Y's immersion in digital technology unique, so is their attitude to work.
"It's not that they are not respectful (to authority), but they also respect collaboration and community. So hierarchy for hierarchy's sake is not exactly a concept that is natural to them," Ms Cerra said.
Ms Cerra says Gen Yers instead want to be able to collaborate, work instinctively and intuitively with one another and expect that technology simply will "be there".
"They just naturally expect it to be pervasive and they use it as a means to an end, to help them collaborate and do extraordinary things that traditional workplace infrastructures in organisations are not as adaptable in allowing," she says.
Read more: http://www.news.com.au/money/property/gen-y-target-investment-properties/story-e6frfmd0-1226105732460#ixzz1YOSshldn
source: news.com.au
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