4 min read
Millennials also known as Generation Y (adults aged between 18 and 35) make up about one fifth of Australia’s population consisting of over 4 million people. In a few years, they’ll make up about 40 per cent of home buyers in Australia and hence play a major part in the real estate market.
As such a large portion of the Australian population and future renters, buyers and sellers, to continue to thrive in the real estate industry it’s crucial that agents glean a decent understanding of millennials’ property wants and needs and know how to best service them.
Here are four essential things you need to know about Australian millennials.
With house prices surging in Australia’s capital cities and a lot of younger buyers burdened with higher education debt and personal loans, affordability is a primary concern for millennials. For these reasons, many millennials will look to become rentvestors and buy an investment property in a more affordable area and continue to rent where they want to live but can’t afford to buy to break onto the property ladder. We recommend prepping a rentvestor fact sheet with frequently asked questions, a glossary of useful terms and reputable property data websites to visit for further information to help the millennial rentvestor feel better informed and prepared.
Facts and figures
As it’s so hard to get onto the property ladder in the first place, millennial buyers are very concerned with the hard facts and stats when buying a property with their hard-saved deposits. Whether they’re looking to owner occupy or invest, they’ll want to have peace of mind that their purchase is a sound investment and it will appreciate setting them up for future financial stability. Reassure millennials clients they’re making a good call by providing suburb profiles including annual capital growth, rental yield rates, and recent sales data for comparable properties.
The wish list
When appealing to millennial buyers there are some ‘wish list’ items that are common within this demographic when house hunting. So be sure to include any of the following features in prime position in your property ad to grab their attention and win millennial enquiries:
Proximity to work, walkability and public transport– A lot of younger buyers want to keep their daily commute time and travel costs down when searching for somewhere to live. They’ll even compromise on the size and condition of the property so long as it’s conveniently located within their desired suburb.
High speed internet and home office space- A lot of millennials work from home part or full time so internet access and a second bedroom or comfortable study space in their new home is paramount.
Low maintenance- Younger buyers prefer homes with low-upkeep requirements. They opt for timber floors over carpeting, stone benchtops over laminate and decking or paved outdoor areas over a lawn and high maintenance garden.
Green features- Millennials are keen on sustainable and energy efficient property features. Be sure to highlight things like water saving fixtures, double glazing, energy efficient appliances, solar panels, rainwater tanks and passive design to attract millennials in droves.
Design– Millennials love the sociable nature and visual appeal of open floor plans, where they can still chat with guests while cooking. They are also keen on clean lines, contemporary design, updated kitchens and bathrooms.
Millennials practically live on Facebook and are on their smartphones 24/7, so if they can’t find you on Google or engage with you instantly via social media they’ll be quick to seek help elsewhere. They’re happiest communicating by text message and email and browsing property listings on property apps.
It’s important to millennials that their agent is up to date with technology and that they’re active online. Millennials are likely to research you before even meeting you or putting in an enquiry, so it’s essential that you maintain an active online presence and your website is attractive, easy to use and kept up to date. They’re also heavily influenced by family referrals, peer opinions and online reviews, so it’s crucial to monitor your online profile and deal with any negative comments or feedback swiftly.
They also love to see agents sharing helpful first home buyer guides, tips for bidding at an auction and market updates on social media to help them feel well informed and get an edge over other buyers. This type of content sharing acts as an indicator of your real estate expertise, your tech savviness and your capacity to guide them through the unchartered and daunting waters of purchasing a home.
For more information about better serving different valuable customer segments here are five things you need to know about first home buyers, tips for working with investors and how to convert baby boomer leads.