Baby boomers have revealed how much they paid for their first home and warn young Australians must abandon their “luxurious lifestyles” to save for a deposit.
Sydney-based investment firm Coposit Street asked older Australians if they thought it was now more difficult for young people to buy a home.
A 72-year-old woman said she paid $82,000 for a one-bedroom house in 1985.
“It all depended on what I earned, that’s what I could afford,” he said.
“I’m lucky to have that house now, 40 years later, otherwise I couldn’t afford to buy it.”
The 72-year-old Sydney woman paid $82,000 for a one-bedroom house in 1985.
The Sydney woman said she had worked three jobs to save for the deposit and had never been dependent on a husband or had children.
He said it was a “very difficult” time for first-time buyers in Australia.
‘The city has become too expensive and for what? “Real estate development, the damn greedy investors and foreigners who have driven it,” he said.
He said young people should be prepared to abandon their “luxurious” lifestyles.
—You’ll have to give up the coffee and avocado toast. I saved. I worked hard for what I had, but it was affordable within what I earned,’ she said.
A Parramatta man said he paid $180,000 for a three-bedroom house in Ryde in 1991.
This Parramatta man paid $180,000 for a three-bedroom house in Ryde in 1991
He estimated the house in the city’s northwest would now be worth $3 million.
“It’s very difficult to buy a house in Sydney,” he said. ‘I can not believe it. It is too expensive for someone entering the market.
He urged interested buyers to save as much as possible for the initial deposit and make use of the stamp duty exemption for first homes.
“Buy as much as you can, and even if you don’t live there, you can rent it,” he said.
Allan Fels, a University of Melbourne professor, economist and mental health advocate, said life was much harder for the younger generation.
He said the figures showed it was now much more difficult to buy a house.
“We baby boomers have had it a lot easier than the new generation of young people,” he told Daily Mail Australia.
‘They face a future with much less home ownership and subsequent mental health stability. The mere fact that they are missing out is a cause of stress.
“The upward trend in prices increases the tension, as many thought they could buy their own home, but they miss out because prices continually rise and are out of reach.”
According to Corelogic data released earlier this month, the median house price in Sydney currently stands at $1,142,431.
The average price of an apartment is $844,659 and $730,651 for regional homes.
First-home buyers continue to struggle to purchase property in both capital cities and regional Australia (pictured, homes in suburban Sydney)
House prices in major Australian cities are expected to rise by more than a third over the next three years, with Sydney’s median price reaching the $2 million mark.
The median house price in Canberra is $972,699, followed by Melbourne ($941,698), Brisbane ($920,046), Adelaide ($800,648), Perth ($753,947), Hobart ($692,004) and Darwin ($579,229). .
The median house price in Australia’s combined capital cities is $966,570, while the median unit price is $664,596.
House prices in major Australian cities are expected to rise by more than a third over the next three years, with Sydney’s median price reaching the $2 million mark.
The increases planned between now and June 2027 would be even more significant than the price increases since the emergence of Covid four years ago, which included interest rates that rose aggressively from record levels as immigration soared.
Oxford Economics Australia forecasts Sydney’s median house price will reach $1.934 million by June 2027, with Perth reaching $1 million.
The median price in Melbourne and Brisbane was also expected to reach seven figures over the same period, as prices increased by between a third and 43 per cent.
