Times have changed since the 1970’s when Baby Boomers could afford their first home on a single income and jobs were stable – a stark comparison to Gen Y and today’s property market.
Young first-home buyers looking to invest are facing challenges their predecessors didn’t, such as the ever-increasing issue of job security and median house prices spiraling well above what the average wage can afford.
Members Alliance CEO David Domingo says the younger generation are now asking for their parents to lend a hand in order to enter the property market.
“Some are lucky enough to receive financial help from their parents to secure their first property,” says Mr Domingo.
“Direct financial assistance is useful, but solid advice is just as good – parents who are unable to help their children with a deposit can help in other ways like attending house inspections and spotting a good investment where their child otherwise wouldn’t.
“Teaming the determination of a young saver and the first home buyers grant with the experience of a parent is profitable combination.”
The International Monetary Fund (IMF) has found Australia has the third highest house price-to-income ratio in the world, which means this trend will only grow stronger in the coming years.
The IMF’s Global Housing Watch also confirms global house prices have risen consistently for nearly the past two years and are well above the historical averages.
Mr Domingo says house prices shouldn’t defer those who are ambitious to enter the property market.
“The sooner they get started the better – home ownership doesn’t have to be out of reach for Gen Y, but they may need to ask for help at some stage, be it from their parents or the bank,” says Mr Domingo.
When thinking about your first property investment, talk to the Financial Advisors at Members Alliance who specialise in property investment advice. Call 1300 365 731 to see how they can help.