A presentation of the latest ING research into millennials’ attitudes toward property investing has shown members of the demographic group are treating the federal government’s First Home Super Saver Scheme (FHSSS) as a viable method of accumulating enough money for a deposit on an initial residential property.
Sydney-based nurse Jess, participating as a panellist at the presentation of the research conducted by Pollinate in conjunction with ING, revealed she made specific inquiries into the FHSSS, which was announced in the 2017 federal budget, to see how it worked and if it was applicable to her situation.
Her interest uncovered a lack of knowledge of the scheme from the superannuation sector.
“When I started saving [to buy a home] my partner and I put our money into a high interest account, but then there was quite a lot of advertising for the First Home Super Saver Scheme,” she told the presentation in Sydney today.
“So I actually contacted my superannuation company and asked them if they knew anything about it and they had no idea.”
After this response, she pursued a different avenue to glean more information about the FHSSS.
“I actually emailed [my local member of parliament] Tony Abbott about it and his receptionist called back the following week,” she said.
“So then we ended up [adopting] the First Home Super Saver Scheme and salary sacrificed $1000 per pay to the superannuation company and we will get that out when we purchase our home.”
The research showed home ownership was important among millennials, with 62 per cent who owned a home indicating it was something that made them financially secure.
“So these millennials recognise owning a house is a big deal in terms of those financial stakes,” Pollinate research director Morgan Owen said.
“The second big point is they are completely aware of and understand the sacrifice that needs to be made to get on the property ladder.
“Despite all that, many are saving for a home but they really don’t seem to have a plan of how they’re going to get there.
“Most people looking to buy a home don’t even have a savings plan. Only 37 per cent admit to having a savings plan, so a whopping 63 per cent looking around and hoping to buy a house don’t have a savings plan.
“It gets kind of worse than that too, so of that 37 per cent it’s actually only 57 per cent of the 37 per cent that actually have a savings plan in the sense that they’re putting away a specific, measurable amount a month.”
According to Owen, the conclusion reached from the research is that millennials are not frivolous with their money and understand the sacrifices they have to make to save for a home, but just don’t know how to go about saving the money they need for the property purchase.
The survey was conducted online and compiled responses from 1000 individuals between the ages of 22 and 37 with an even mix of male and female respondents.