Can the next generation afford to buy a home?

Adam Smith 5 April 2016

Can the next generation afford to buy a home

Nearly two-thirds of Australians believe the next generation won’t be able to afford their own home.

A new survey from National Australia Bank’s (NAB) wealth management division MLC has found 58% of Australians believe the next generation will be unable to afford home ownership, and will be forced into lifelong renting. The survey also found that one-third of parents worry their children will not be able to attain the same standard of living as their own.

“It’s concerning to see so many people are worried about how their children will afford their own homes and live a comfortable lifestyle,” MLC chief executive Andrew Hagger said.

The financial concern wasn’t restricted to future generations, though. Half of those surveyed believed they wouldn’t be able to maintain their own current lifestyle in 10 years time. Furthermore, one in five people surveyed said they would have to rely on a family inheritance to pay off their mortgage.

One positive sign from the survey was the indication that the superannuation system was increasing Australians’ self-sufficiency in retirement, Hagger said. The survey showed only around two in five Australians heading into retirement believe they will have to rely on the aged pension.

“That is why it is more critical than ever the objectives of super are enshrined in law as swiftly as possible to avoid constant political tinkering and provide stability and certainly to all Australians,” Hagger said.

Can you afford a home loan?

Want to see if you can afford a home loan? Check out our How Much Can I Borrow Calculator to get an estimate of your borrowing power.

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