Has Generation ‘Y’ Given up on Property?

The definition of a Gen Y is someone born between 1980 and 1995. But for most people Gen Y is just a euphemism for layabout, bludger or timewaster. And it helps to explain the alternative reference of ‘Gen ID’ - which means ‘Generation I Deserve’.

Let’s be honest, the name calling is appropriate. I’m sure you’ve talked incessantly about lazy youths or young adults - they won’t buy house, they want to go overseas, they won’t put money in the bank, and on it goes.

And then they quit a perfectly good, well paying job, just because it didn’t ‘engage’ them - whatever that means.

But fear not, the Gen Y offspring aren’t completely useless and ignorant of investing. In fact, you may be quite surprised at how good some of them are at saving…

You see, a survey from bullion company Gold de Royale came through to my inbox recently. The survey looked at their client’s investments habits.

The most interesting detail was the age of the customer buying bullion. A whopping 32% of gold bullion purchases were made by those classed as Gen Y!

But hang on, that can’t be right! This is the generation that thrives on credit, still lives at home on the Bank of Mum & Dad, and believes that a loan for $20k for that ‘must have’ 12 month trip overseas is an asset rather than a debt?

But what about the Gen Xers and Baby Boomers? Only 5% of Gen X’s looked to precious metals for an alternative investment, whereas the Baby Boomers lead the way with 60% of the near retirees wanting bullion as an investment.

Even so, the mainstream media image is still Gen Y is useless with their money.

But the fact is, they’re not. And I’ll explain more in a moment.

Firstly, you need to remember that no other generation has had credit thrown at them, like the Gen Yer’s have.

I bet you spent years saving for you first car, with every single cent - or penny - safely tucked away in a jar or under the bed. You knew that if you wanted wheels, you had to work hard and save for it.

But, when a Gen Yer was finally ready for a car, his or her bank manager had already sent a letter to them congratulating them on their eighteenth birthday and advising them they could get a loan for a car - even if they only had a part time job.

And don’t forget that at any University open days, there are bank leaflets for prospective students on special ‘University Credit Cards’. Sure these cards have a low limit, but before the students are enrolled credit has been thrust into their hands.

So while they have been dubbed ‘Generation Debt’, amazingly ‘only’ 56% of Gen Y’s over 18 have a credit card.

I mentioned before that the Gen Yer’s might be better at investing than you first realised. While you’ve looked at property prices, and possibly wondered how your kids will ever afford their own home, this generation, have looked for alternatives instead.

A hefty chunk of Gen Y have share portfolios. Many older investors have been frightened off the stock market, but Gen Y has used this crisis as a chance to become financially ’savvy’.

A large majority of ‘Generation Me’ have taken this market carnage as a sign they need to learn more about investing. In fact, 65% of Gen Y rate ‘Saving & Investing’ as their main concern. In true Gen Y style, they even have Facebook groups dedicated to sharing tips on how to save more money.

And even though retirement is nearly 40 years away for this lot, many are contributing more of their salary to superannuation.

So if you have the strong desire to kick your Gen Y off the Xbox, Playstation or Wii and move them out of their bedroom while they’re at work, do it. You might just find a large stash of bullion under their bed!

But the good news to come from the market down turn, has shown Gen Y that boom times don’t last forever and that they’ll look for other investment opportunities, instead of bricks & mortar.