Not good news for those wanting to buy a home, especially for new home owners. I would recommend to consider smaller non capital cities like Newcastle, Woolongong etc that you can still get to a major city in driving distance. Properties in these smaller cites are starting to rise as many people get pushed out of the city markets so get in now before it's too late. Melbourne and Perth, Brisbane, Adelaida have similar options outside of the main cities where you can find smaller cities that still offer a lot of the benefits of a major city.
Read the full article here: http://www.theaustralian.com.au/news/na ... ews-story/The Australian dream: soon, fewer than 50 per cent will own home
The Australian dream of home ownership will reach a tipping point, possibly as soon as next year, when fewer than half of all adults are expected to own property, a scenario with “undesirable social consequences” according to the University of Melbourne.
The university’s Melbourne Institute has been collecting data on almost 20,000 Australians since 2001, checking in every year and building one of the most complete pictures of the lives, loves and finances of the nation.
The proportion of adults who own their home has fallen from 57 per cent in 2002 to 51.7 per cent in 2014 but Roger Wilkins, the deputy director of the Household, Income and Labour Dynamics Australia survey, says that based on trends the ratio will likely fall below 50 per cent as early as next year.
“I think this is a real cause for concern,” Professor Wilkins told The Australian.
“I don’t think there has been a real decline in people's aspiration to own their own home other than the fact people have just given up on it because it seems unattainable.
“This decline is driven by affordability, not changes in preferences to home ownership. For a society like Australia this has undesirable social consequences.
“Given the insecurity of tenure associated with renting in Australia, home ownership is strongly associated with being invested in your local community, feeling a part of your community and contributing to it. It is important to the social fabric.”
Victoria has experienced the sharpest decline in the proportion of households classified as homeowners, falling from above 72 per cent around 2007 to 66 per cent in the most recent survey.
The NSW ownership rate has fallen during that period from almost 67 per cent to 63 per cent, though there have been small ownership upticks in Western Australia, Queensland and South Australia.
The family home accounted for 43 per cent of household assets in 2014 but the share of households that owned investment properties grew from 17 per cent to 21 per cent between 2002 and 2014.
Meanwhile, superannuation is on track to overtake the home as the most important family financial asset in decades ahead, hitting a mean value of $186,000 in 2014, from $112,000 in 2002.
But for the moment home ownership is still the primary means by which Australians generate wealth and that has flow-on effects to other aspects of life, such as family planning.
The survey finds that women are the primary decision-makers when it comes to starting families, basing their judgments on their own financial situation and satisfaction with partners.