Housing affordability a continuing struggle for Aussies
More than a third of Australians renting or living with family cannot afford even a 10% deposit toward a property.
More than a third of Australians renting or living with family cannot afford even a 10% deposit toward a property.New research by CoreLogic has found Australians have a dim view of housing affordability. The researcher’s Housing Affordability Perceptions report, released ahead of tonight’s Federal Budget, found 35% of respondents who were renting or living with family could afford less than a 10% deposit, while it would take 1.5 years’ worth of median household income to afford a 20% deposit.
The survey found many young Australians are remaining in the family home, with more than 20% of those still living at home saying they didn’t expect to move out until after the age of 30. The survey also found 62% of respondents who currently live with their parents said they couldn’t afford to move out of home.
In spite of the challenges, home ownership remains a priority for Australians. More than 90% of respondents in NSW and Queensland said buying a home was very important. However, 74% of respondents said they were either very concerned or quite concerned about being able to afford a home, and 58% said they expected home ownership to become even more challenging next year.
For current home owners, mortgage payments are a struggle. More than 50% of respondents said they would struggle if interest rates rose 2%, while almost one in ten (8%) were already facing difficulty.
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How would the housing scheme work for people who are jut starting out and only have 2000 in their superannuation. Would they have to have a certain amount in their super fund to salary sacrifice
Hi KB!
Thanks for the question.
Our understanding is that you can only withdraw the funds you contribute into your super account specifically for saving a home deposit under the First Home Super Saver Scheme, so any other amounts already in one’s super account would not be able to be used towards the purchase of the property. For more information about how the scheme might work, please read our guide, “Budget 2017 Housing Affordability.”
I hope this helps,
Regards,
Marc