The Federal Government’s mortgage guarantee scheme aims to help first home buyers enter the property market and according to the ABC, a month and a half into the program, 6,500 loans have been or are being processed.
That leaves another 3,500 places in the scheme this financial year and another 10,000 spots will become available from July.
Under the scheme announced ahead of the May election, the Government is offering loan guarantees for properties with different caps for different cities and regional centres.
Just released data shows the scheme is helping millennials achieve their home ownership aspirations and boosting sales in regional areas.
Quoted in Elite Agent HIA Chief Executive Industry Policy, Kristin Brookfield, says 34% of applicants are aged between 25 and 29, with 76% between 18 and 34 and millennials making up the largest share.
“This represents 3055 first home buyers taking the opportunity to buy their first home sooner,” Ms Brookfield says.
“Where first home buyers are looking to live is also encouraging with a large number of applicants, including millennials, looking to buy outside the major cities of Sydney, Brisbane and Melbourne.”
RESO CEO Kate Chalk says Generations X (millennials) and Z are posing a challenge for the real estate industry because they are demanding to connect, research and purchase through digital devices.
“With the increase of volume of millennial, and younger purchasers, real estate agents are learning the value of online tools that place the property transaction process at their buyers’ fingertips,” Kate says.
“The RESO platform – Real Estate Sales Online – has been designed with feedback from the real estate industry to deliver to these changing consumer expectations and a heightened need for speed and transparency.”
While agents of all ages are embracing online tools millennial agents like Klemich Property Consultant and Personal Sales Assistant to Penny Riggs, Isabela Klemich, know the importance of technology across the property process………..
Q: What is your personal experience with younger buyers and vendors when it comes to technology use and their expectations?
A: Younger buyers and vendors certainly prefer to communicate via email, text and even Facebook Messenger rather the over the phone – very rarely do they pick up the phone and make calls! I recently listed a property and got as far as collecting the keys a few days before the first open before I realised I didn’t even have the vendor’s number – all our communication had been over Messenger, email or face-to-face And more and more young buyers use text to communicate and communication can be done at all hours of the day – often at 9pm at night etc.
Q: How dominant do you think mobile technology use is and how will it affect property transactions in the future?
A: Very dominate – most people use their phones to search for property and people find agents and keep up-to-date online or over social media.
Q: Do you think using technology like RESO.com.au will be how Generation Z expects to buy a home?
A: Most likely, yes – a lot of people just expect us to do things online. I think young people feel much more comfortable when things are done online – they don’t like having to make a call!
Q: What benefits do you see technology bringing to the real estate transaction process?
A: It can save us a lot more time and help us be more productive. Technology also helps us get more business. But although I believe technology is really beneficial, we are still a people business and sometimes we just need to meet with people and chat!