Did You Know:- One in seven first-home buyers in Sydney is in their 40’s and even 50’s due to the unabated rise in house prices according to the latest figures from Mortgage Choice’s The Saturday Telegraph and it seems it’s a similar situation in Newcastle. Previously, the majority of people wanted their homes fully paid by the time they are 40. Now, an increasing number of buyers are getting ready to spend their golden years still paying their mortgages.
Real Estate Institute of NSW president and Cunningham Real Estate managing director, John Cunningham, believes that this is partly due to lifestyle trend, with people now living longer and taking longer to settle down. Another reason is affordability – buyers need to save up to $130,000 in deposit to purchase a median-priced home in Sydney and here in Newcastle it is approximately $68,000.
The age of first-home buyers keep rising in recent years, with one in three now more than 35 years of age, said Finder.com consumer advocate Bessie Hassan.
The thought of people still paying off their mortgages in their 60’s or older is rather scary. For young people it is no longer a rite of passage to enter university, get married, and purchase their first home. They now need to realise that if they consider getting into the market early the Australian dream of owning a house with a white picket fence is really just that – a dream.
I’m also personally seeing more and more singles, siblings and even single parents teaming up with other’s in the same or similar situation with the purpose of getting into the market and buying a property together. Once they have the first property, they then help buy a second one so they both have their own home in the end.
I really believe that we are going to see yet another incline in the age of first home buyers this year as we struggle to find new stock and the number of available properties become even more elusive.