A hot topic that's been around for quite some time now is the difficulty for the current and upcoming generation to buy real estate and get on the property ladder.
This article by Nick Alexander and Joseph Barino published on ABC describes the problem - https://www.abc.net.au/news/2024-10-31/will-todays-teenagers-ever-become-homeowners/104525642 .
The article highlights the fact that over the last decade there has been a 74% increase in house prices but only a 27% increase in wages across the board. The median household income in Australia is approx $100,000 and the estimated median property value in Australia is around $800,000 (8x the median household income).
It generally requires a 20% deposit to purchase a property to avoid LMI (Lenders Mortgage Insurance) - that is $160,000. The article goes on to say that if a buyer saves 15% of their income per year it would take 10+ years to save this deposit amount. That is why so many first home buyers must dig into the 'bank of mum and dad'.
The article goes on to criticise politicians with extensive real estate portfolios (such as Anthony Albanese who just bought a $4.3 million waterside house in the Central Coast) who are setting policies for housing in this country. Is this fair criticism?
What are some ways first home buyers can get their foot into the market without being stuck making landlords rich by renting?