Young people shelve home buying plans
The great Aussie dream of owning your own home looks set to remain just that for one-in-three. Gen Ys, who say they will be locked permanently out of the property market. The sobering assessment by many Gen Y's in the latest Bankwest/Mortgage and Finance Association (MFAA) Home Finance Index adds fuel to the debate about a fast emerging “two speed” property market with more and more young Australians expecting to be life-long renters.
More than half of Gen Ys say they are shelving their plans for buying a home because of how much debt they would need to carry to afford a property – up more than 10 per cent from the last survey in November 2009. “We have never seen such pessimism amongst prospective first time buyers throughout the past five Indexes,” said Vittoria Shortt, Chief Executive, Bankwest Retail. “70 per cent of respondents were very concerned about the level of debt they will be committed to if they buy a property.”