Generation Y 'a lucrative market'

Friday, 13 Jul 2012

Mortgage brokers could find that there are plenty of opportunities for business among Generation Y, an expert has suggested.

Speaking to Australian Broker Online, broker Paul Gollan said that this group is perhaps more cautious about taking on debt than others.

Melbourne-based Colin Sheppard agreed, saying that brokers should do what they can to appeal to this aspirational demographic.

"The positive is that Generation Y isn't afraid to take risks and make a buying decision. What they lack in experience, they make up for in confidence," he commented.

Mr Sheppard added that these people are capable of making some pretty sound investments, meaning they will reach retirement age in a good financial position.

A recent survey conducted by Loan Market identified that many members of Generation Y do not feel reductions to the cash rate over recent months have had much of an impact on them.

Nearly a third (32 per cent) of those polled said they had been boosting their savings and that more cash rate cuts are necessary.

Corporate spokesperson Paul Smith indicated that the European debt crisis is weighing heavily on many people's minds at the moment.