Interestingly, many Australian Millennials identify the challenge of saving for a deposit for a home loan as their biggest barrier to home ownership, but only 17% of Australian Millennials who intend to buy a home have a precise budget.
Establishing a budget is a vital step in the home ownership process. A budget shows you where, when and how much you’re spending and how to trim your expenditure so you can reduce your debts faster. If you’re not sure what’s involved in developing a budget, you can find an online budget tool on the Our Broker website by clicking here.
In terms of where you might be able to shave back some spending, the HSBC research says many Millennials are willing to consider making sacrifices to afford their own home. More than half (55%) of millennials who intend to buy a home would consider spending less on leisure and going out; 33% would be prepared to buy a place that’s smaller than ideal; and 21% would consider renting out one of their rooms. Eighteen percent would consider buying with a family member and 11% with friends.