Property wars: The Baby Boomer approach younger generations are missing

When buying their first home, 41% of Baby Boomers locked in to properties in suburbs with the intention of calling it home for life.

The rise of ‘stepping stone buying’ was a key insight uncovered in the latest Mortgage Choice Home Loan Report.

Compiled from home loan submission data from Mortgage Choice and a nationally representative survey of 1000 consumers, the report highlighted home loan trends, in addition to the intentions of Australian borrowers and prospective buyers.

“The report reveals a contrast in how different generations view property, with Baby Boomers saying they bought their first home with the intention of staying put for life,” Mortgage Choice chief executive Anthony Waldron said. 

“Gen Z buyers see property as an investment in their future and are focused on getting a foot on the property ladder.”

Buying a first property as an investment was highest amongst Gen Z at 17% and Millennials at 13%.

Meanwhile, 47% of Generation Z and 54% of Millennials  said their first home purchase was done so as a ‘stepping stone’.

However, just 35% of Baby Boomers said this was the motivator when they first made their leap onto the property ladder.

Ranking close second to Baby Boomers (41%) viewing their first property purchase as a forever home, 36% of Gen X respondents shared the same mindset.

On the other end of the spectrum was Gen Z at 17% and Millennials at 31%.

Only 9% of Baby Boomers cited their first property purchase as a fixer-upper project, with 12% of Gen X respondents sharing the same sentiment.

In contrast to their Baby Boomer predecessors, 22% of Gen Z respondents said their first home purchase was as a ‘fixer-upper.’

Rounding out this category was Millennials at 19%. 

This article first appeared on Mortgage Choice and has been republished with permission.

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