More than 60% of household heads born between 1950 and 1954 had bought their first home by the age of 30 to 34 years.
Whereas only 45% of household heads born between 1985 and 1989 had bought a home by the same age, reports Domain.
The research was conducted by University of Sydney researchers from the Australian Housing and Urban Research Institute. Lead researcher, professor of economics Stephen Whelan, said the research showed that some young people, weren’t just delaying home ownership, they weren’t buying a home at all.
But some things could increase the chances of you getting on the property ladder. The research showed that a gift of $10,000 or more from your parents or a bequest could increase the likelihood of purchasing a home by 90%. Also, each extra year living at home with parents instead of renting, increased the likelihood by 30% to 40%.
“Older generations – parents and grandparents – have accumulated large amounts of wealth over the course of their life, and increasingly they’re transferring that wealth through gifts or bequests to younger generations,” he said.
“It makes that transition into home ownership much more likely.”
If the bank of mum and dad or a whopping inheritance isn’t likely to form part of your home ownership journey, it’s worth getting some independent financial advice to help map a home ownership plan that is right for you.
It’s also worth checking if you’re eligible for government support to buy your first home.
Be realistic about your budget and what you’re prepared to compromise on. With the right plan and advice, the path to home ownership can become more certain.
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Still renting? Check our listings for rent.
