(03) 9020 2905Aah, here we go again. The perpetual moan of youth and property ownership.
Perhaps we end this eternal whinge by getting the Federal Government to give everyone a home on their 21st birthday. Given the expense to taxpayers, you won’t mind living 80km out of town, will you?
Listen here, Young Turks. Property ownership is not a right. It’s a struggle. It’s a sacrifice. Saving a deposit means buying fewer clothes, driving cheaper cars, staying in with a DVD, rather than blowing $150 going out.
And when you do buy, mortgage pressure will be around for way longer.
When I bought our first home at auction, I was so nervous about the looming mountain of debt, I accidentally locked my keys in the car.
Those nerves were the same for my parents. And, I’m guessing, for their parents. Grandma Kerrin’s (right) words are wise again today.
But … property is “cheaper” than for several years. Prices are lower than two years ago and interest rates are in the bargain basement. The HIA-CBA Housing Affordability index jumped from 56.9 per cent to 69.7 per cent in the last year.
First home buyers make up 15 per cent of new mortgages. Investors own about 30 per cent of the property market. Both stats are at historical averages.
The average age of a first home buyer has changed. Since the early 70s, it has drifted from 25 to 31. But today’s kids stay at school longer (more do uni) and stay home longer too.
Those desperate enough for home ownership inevitably find a way. They always have. And they always will.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.