With house prices reaching dizzying heights, it is easy to conclude that entering the property market is extremely difficult for Gen Y homebuyers. But according to finder.com.au's Property Update figures, it is not true that Baby Boomers had it easy, as they were faced with higher repayments and greater mortgage stress.
ABC Bullion chief economist Jordan Eliseo said that things were tough for Baby Boomers since they had to deal with very high interest rates from day one. But then, they had the advantage of declining interest rates.
"Over the last two decades, (Baby Boomers) have benefited both from the decline in interest rates and the huge rise in property values."
Still, he emphasized that Gen Y is facing other risks because they are paying the highest house prices on record, as well as high superannuation.
Mortgage Choice National spokeswoman Jessica Darnbrough also said that Gen Y people have every right to complain about buying a home because getting onto the property ladder has never been more difficult.
"In Sydney, with the average house price being around $800,000, and taking in a 20 per cent deposit, plus costs, that's $180,000," Darnbrough said. "That's an enormous milestone, especially for first-home buyers."
Finder.com.au money expert Bessie Hassan also noted that figures from the Australian Bureau of Statistics showed that the number of first-home buyers continues to decline.
"The latest figures show first-home buyers now account for just 13.4 per cent of all home loans financed," she said. "This shows that first-home buyers are having an increasingly tougher time entering the property market."
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