Former Sunrise host David Koch said baby boomers didn’t have it easy despite much cheaper home prices.
Koch, who is now chief economic officer at Compare the Market, said his generation also struggled when trying to climb the real estate ladder and that it was a “right of passage.”
‘Did Boomers have it as tough as younger generations?’ Briefing podcast host Sacha Barbour-Gatt asked the 68-year-old this week.
“My verdict is that it depends on when you bought your house,” Koch responded.
House prices in Australia have risen on average about 382 per cent over the previous three decades, according to property research firm CoreLogic.
Former Sunrise host and financial journalist David Koch said baby boomers also had difficulty buying homes and it was a “right of passage.”
The median house price in Sydney in 1992 was $221,771 and in 2022 it has shot up to $1,346,193 thanks to population growth and a shortage of new homes.
“You know, I’m going to sound like your grumpy old dad or your uncle or whatever, but I went through 17 percent mortgages,” Koch said.
‘Yes, in comparison, it was a much lower loan.
‘Certainly, current home buyers and first home buyers need a larger deposit and their loan amount is much larger.
‘But when interest rates were, you know, mortgages were 2 percent not long ago, then my 17 percent was a lot harder.
“Now that home loan rates have risen to 6 percent, today’s home loan borrower is making it harder than they did in the boom days of 17 percent.”
Koch said the argument of who is struggling the most in the housing market is nothing new.
“When I was in my twenties, I felt the same way about my parents: ‘Oh, you’re making it difficult for us to enter the market,'” Koch said.
‘I saw a clip recently from the ABC archives of a house and land package sale in the late 1960s and they interviewed a couple who had missed the auction.
They had exactly the same arguments: we were the older generation, we were outbid, how can our age afford a home loan?
‘And at that time they were selling land packages for $2,000.
‘So it’s all quite relative.
“That doesn’t diminish how difficult it is, When you do a big ticket item like buying a house, it’s going to be difficult. unless you come from a very rich family or have inherited wealth.
The median house price in Australia has risen 382 per cent over the past three decades.
Koch also questioned whether the younger generation was suffering from a cost-of-living crisis or a “cost-of-lifestyle” crisis.
“Everyone wants to live their parents’ lifestyle,” he said.
‘But they started fighting and developed over the years.
You can’t rush. You have to work for it. Build a career, save.
‘Look at your lifestyle, people don’t want to hear, but aDo you find it difficult b?Because it is a cost of lifestyle issue rather than a cost of living issue?
Many young Australians are struggling to get on the property ladder (File Image)
Barbour-Gatt also asked Koch if the younger generation was choosing not to even try to own a home.
“There has been talk that many young people wait for an inheritance to be able to buy a house, perhaps they choose not to save and instead do well, “I know that one day I will be able to buy,” he said.
“Well, parents live longer,” Koch responded.
‘My mom turns 90 in August, his older brother will turn 100 next weekend.
‘So the age profile is changing and you will have to wait a lot longer.
“But many parents are helping children along the way… whether financially or in kind, you know, babysitting two days a week.
‘That’s why families are coming together.”
Kochie is the former host of Sunrise.
Koch also said he believes the housing market will remain difficult for “several years.”
‘HeIt’s all about supply and demand, and we need 250,000 new properties per year just to keep that supply and demand in balance.
‘Last year we built 160,000 and next year, only 170,000.
‘Building approvals, i.e. council approvals, are at their lowest level in ten years.
‘The government used to build between 50,000 and 60,000 houses a year.
‘Today they don’t build anything.
‘So don’t blame the landlords because they are the ones who actually provide the rental properties right now.
“They are suffering from high interest rates and also from high costs.”
