Lots of absolute toss is written about the first home buyer in Australia.
And the commentary varies in the extreme – from how active they are; to how lazy they seem and that they want everything on a silver platter.
And now the Federal government has unveiled their scheme to help up to 10,000 first home buyers on low and middle incomes enter the market each year from January 2020.
I have enclosed two charts and a table in this post that I reckon sums up the real state of play when it comes to buying your first home down under.
Top 5 reasons why early adults move back home
|1. Trying to save money||50%|
|2. Convenient to my/our current needs||25%|
|3. Happy to live at home||21%|
|4. Want to move out but can’t afford it||20%|
|5. My job isn’t secure enough to leave||20%|
|Matusik + AHURI. Age group 25 to 34 years. Multiple answers given. 2019 Survey.|
These charts and table are something we shouldn’t be proud of.
In most places, today, more money is lent to investors than first home owners. Western Australia and Northern Territory are the two current exceptions. When I started in this business it was rare than investment loan totals exceeded that lent to first home buyers. Something is wrong here if you ask me.
The FHOG and FHOB was great politics but shit house policy. Ditto to the current proposed scheme. They inflate prices, distort the building cycle and have helped reduce – dramatically – the proportion of first home buyers.
Many young adults are now stuck at home. Burdens all round.
Those of us – with children in the 20s and 30s – should really hang our head in shame. My bad too!
For the most part, we will leave our children (and probably our grandchildren too) worse off, economically, than we are.
We are the first generation, in over 200 years in this country, to achieve such a feat.
Little wonder why they the younger generation are starting protest?
Big changes are coming. Are you ready?
I will leave you with this Confucius truism.
The strength of a nation derives from the integrity of the home.
Until next time,