Gen Y's Buying Crisis
It’s no secret that Gen Y are struggling to find affordable first homes. With consistent price growth across most of Australia, even with efforts like Australia’s historic low interest rates and the increased First Home Owner’s Grant, younger buyers with fewer assets often find owning a property just isn’t in the budget. So just what’s happening out there?
How Did This Happen?
First, it’s important to know what’s led to this. Australia has seen prices steadily increase for a while now, with income not keeping pace. The Australian Bureau of Statistics reports those aged between 25 and 34 have seen housing expenditure rise by nearly 33% compared to people of the same age in 1984, and such an increase is unaffordable for many.
What’s Going to Happen?
The worry now is that with Gen Y unable to buy a property, the market will collapse once Gen X and Baby Boomers are too old to continue buying, which is why Federal and State governments are trying to make properties more affordable and entice young people back to buying.
However, with Sydney and Melbourne seeing unsustainable year-on-year price growth of 18.9% and 15.9% respectively, it’s likely these bubbles will soon burst, and prices will topple in these regions.
What Can I Make Happen?
Luckily, Brisbane’s year-on-year growth of just 4.3% is more sustainable, although it’s still possible we’ll be affected by a fallen Melbourne and Sydney market.
Also, with a possible oversupply of apartments currently being built in the city, suburbs further out from the CBD, such as those serviced by LJ Hooker Sunnybank Hills, are seeing more modest growth that’s less likely to be affected by a crash.
If you’re thinking of buying, you may want to consider buying away from central locations and city suburbs. Property prices further out can be less volatile, and though they’re not always as desirable, they can provide more reliable growth, and help you better plan for your future. If you want to see what’s possible, call us today for more in-depth analysis on your local market.