Gen Y is always ready to buy, and they have there on average 5 credit cards and over 1000 facebook friends to either fall in love or destroy your product.
Gen Y is the fastest growing consumer demographic, and the current economic engine of the world economy. In 2017 they have outspent the baby-boomers. They use virtual wallets, download music, games, apps and movies in seconds. The Gen Y’s currently between 22 – 39 years of age are current controller of the economy and our immediate political future in Australia.
Gen Y also maintains the highest credit debt to income ratio, highest under and unemployment rate and the highest HECS Debts. So how do they have any money? Do they buy property?
Well Yes, they have money. Yes, and no, to property, at the moment but they will come based on affordability.
The older Gen Y’s who were the main purchasers of property in the last 5 years have lost in real equity terms between 7% to 38% of the value of the homes they purchased due to real market conditions and corrections in the Top End. They only lose that money when they sell, and although they have been selling a lot, over the last 2 years, many are starting to hold onto those investments.
However, the southern Gen Y from NSW, to VIC, has increased their net equity over the last 5 years by 34%. The local Gen Y's might be lean, but the imported Gen Y's are flush.
Due to the globalisation of the Australian work force, Gen Y has experienced the largest assault on their incomes, and hours of employment. But due to their superior use of the social media forums, they can easily change events, and outcomes through positive progressive political pressure.
Gen Y’s bring valuable strengths to the economy, and to business-
Gen Y has the greatest lifetime value of any generation in today’s marketplace. Whoever gets and holds onto them now, wins.
Gen Y has the least loyalty to brands, and purchases. This evens the playing field dramatically. You might be a facebook friend, but they buy were the product is, if you don’t have it, you lose the sale.
When they have a great buying experience they tell all their friends, including thousands of virtual ones. Upset them and you don’t lose 20 customers, you may lose them all.
To bridge the generational gap to get sales you can take these steps and they are virtually free-
Tell them they are special. Seriously they love getting a ribbon for participation. They love it and will frame it.
Connect and listen – If you ask a question and just let them go, they will let you know exactly what they want (everything), and when they want it (now). Facilitate the purchase, through referrals to finance etc, and you will get the sale.
Use social media - Send them a video of you singing them happy birthday on their special day. You only have to record it once and post it to youtube and just share.
What are the new Real estate practices developed to deal with highly motivated buyers with little income?
Buyer Pools – Groups of purchasers that have pooled their resources to buy more properties together in unit trusts
Share/Property portfolios – Rather than purchasing their own home many Gen Y’s are buying properties through the stock market
Rent to buy scheme with their parents – In a tight market their parents have dropped their rents to meet demand, the rent to buy schemes are growing in popularity in inner city families in Australia.
Gen Y has the potential to be the ideal customer, they have massive purchase demand. But they have a lot of debt, and don’t carry cash. Combining their cash flow, whilst minimising their liabilities is the key to positive investment growth.
Gen Y’s greatest weakness is distraction. Why do you think the government spends so much time on social agenda’s? The Gen Y’s are easily distracted, if they combine as a group they are extremely powerful, so to maintain the status quo, many fictional issues have been created. Whilst Gen Y is concentrating on social movements etc. however, they are starting to understand their power.
An empowered purchaser seeks to create change and the “less is more” mentality of Gen Y has already had a massive impact on the social, and cultural structure, of many new housing estates.
Rather than competing for a dwindling market, the redesign of some properties, and subdivision will reduce the price, increase the affordability, and attract the Gen Y buyer.