Almost three in five Australians believe the next generation will never own their own home, the results of a new survey have shown.
According to research from Ipsos and MLC, 58% of those surveyed said the next generation will be forced to rent all their lives and never own their own home. Much of this anxiety has been fuelled by the increase in house prices over the last five years.
Data from CoreLogic RP Data shows house prices across Australia’s capital cities have increased by a cumulative 49.2% post GFC, since January 2009.
Further, almost 1 in 5 (17%) in the Ipsos and MLC survey indicated that will be relying on family inheritance to pay off their mortgage or ensure their financial security.
This was higher among those who believed their parents to be a higher class than them. More than half (55%) of those who believed their parents were upper class said they would have to rely on their parents, while one in five (20%) of those who believed their parents were upper middle class expect to rely on their inheritance.
Almost a quarter (24%) of those respondents who went to a private school said they will need to rely on family money to pay off their mortgage.
This comes as no surprise given more than three quarters (76%) of the 2040 people surveyed say that their mortgage has a big impact on their lifestyle, regardless of their wealth.
The results of the MLC survey come just days after similar findings from lender's mortgage insurance provider Genworth, which showed potential buyers in Australia believe they are facing an increasinlgy uphill battle to come up with deposits for property purchases
Genworth chief commercial officer Bridget Sakr said that belief shows that current low interest rates aren't making entering the property market as easy as some would believe.
“The difficultness in saving for a deposit has increased by 20% since September. I think we need to keep that in mind in the home ownership issues, it’s not the affordability when it comes to interest rates, but the actual accessibility," Sakr said.
“Even though we’ve had those out of cycle rate increases, the interest rates in the first home buyer market are still pretty low, but it’s actually house prices that are making it quite expensive," she said.
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