Young home loans customers 'avoid rent to save cash'

Three-quarters of people under the age of 30 revealed that they had stayed at home longer than they wanted to in order to put money aside in a savings account to pay for a deposit, a new survey has revealed.

Conducted by RAMS Home Loans, the figures revealed that 76 per cent of respondents had never rented a property.

Melos Sulicich, chief executive officer of the firm carrying out the survey, commented: "What we are now increasingly seeing is younger Australians using this time to save for their own home instead and avoiding renting.

The expert noted that this follows an existing trend in which Gen-Y Aussies have started to stay for longer in the family home rather than apply for home loans earlier or rent a property from a young age.

Individuals with a deposit in a savings account who are in a position to compare home loans may have been encouraged by the latest BIS Shrapnel Residential Property Prospects 2011-14 report, which found that the cost of a dwelling is likely to remain relatively stable.

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