The Australian housing market is enjoying an all-time high, all thanks to Aussie baby boomers on a house buying spree.
People may recall back then, when would-be Prime Minister Malcolm Turnbull said that boomers were rich enough to buy houses for their kids – people were outraged and said that the statement was a little bit insensitive and out-of-touch for ordinary citizens.
However, according to News.au, Turnbull actually was onto something and it turns out, a couple of years later, he was right.
With low interest rates and house prices rising like tides, interested buyers in parts of Sydney and Melbourne are now turning to their affluent parents to shell out some cash so they can afford their home.
In fact, the boomers filled recent housing auctions – most bidding on behalf of their children.
One older couple that failed to bid on 1 $1.3 million property said that they were there to buy the house for their kids.
They said, “We want to give our kids a start … In fact, I bought a unit for my daughter last week. I just had the money.”
Craig Pontey, the directory for Ray White Double Bay, said that his recent auction portfolio was so jam packed that about 50 people were left standing and added that most of the bidders were mothers and fathers – especially for properties in Sydney’s eastern suburbs.
He said, “I think it’s been going on for a while, but more so recently because there’s been such price growth in the last three or four years, it’s now starting to get out of reach for a lot of people,”
“Unless the parents help the children, then they’re not going to be able to live in close proximity to where they are. I know with my own children, when you want to visit your grandchildren you want to visit them close by if you possibly can.”
Housing prices and living expenses are definitely on the rise, while jobs and salary remain relatively stagnant. This presents a big problem for Millennials and Gen X-ers as most of them are struggling to even purchase a little property.
With this at hand, and with baby boomers having a lot of cash in their hand, expect this trend to continue which is good news for property brokers in Victoria.