More than one third of young homebuyers are putting aside at least 20 per cent of their pay packet, according to research released this week by Bankwest.
The latest Bankwest/Mortgage and Finance Association (MFAA) Home Finance Index shows that most of these first time buyers appear slightly more optimistic about their chances of climbing the property ladder soon, with 37 per cent of Gen Y homebuyers feel their financial situation has improved in the last 12 months.
The survey also revealed:
* Only 32 per cent of first-time buyers are worried about job security (down from 41 per cent in July 2010)
* Fewer first-time buyers (39 per cent) are putting their home ownership dreams on hold due to the current economic situation than the survey in July 2009 (43 per cent)
* Nearly three out of every five first-time buyers (59 per cent) are changing their behaviour and trying to save more money.
"For those with job security, modest house prices and competitive mortgage deals are increasingly spurring first time buyer intention in the real estate market," said MFAA CEO Phil Naylor.
Bankwest Head of Specialist Banking Ian Rakhit remarked that the national savings rate has pushed through 10 per cent and it seems that young buyers putting money aside for a home deposit are part of this trend.
"Given that prices are higher and government grants lower, it may be a while yet before these extra savings match the level of first time buyer activity seen in 2009", Rakhit said.
"However, the signs are more positive for this segment of the market", he added.
The survey polled more than 1,100 people across Australia and is the eighth Index taken since 2004.