We all know about the biological clock but recent research says that there is a property clock as well. According to new research, 49 is the age at which you need to own your home.
Senior Property Journalist Kirsten Robb of Fairfax says that “If you do not own a home by the time you are in your late 40s, you will probably never own one — and you will probably be significantly poorer than those who do.”
The claim is grounded in a report by Swinburne University which found that there was an increase in the number of Australians who were renting in retirement and that this factor was likely to cause significant financial stress, including “housing insecurity and impoverishment”.
The report author believes that Australia’s retirement income system is linked to retirees owning their home outright.
There is a lot of ‘funny’ data emerging recently on the issue of housing affordability. While we would expect that the unaffordability tide would have impacted Sydney and Melbourne hardest (let’s face it you can’t buy a cubby house for less than a million dollars in Sydney) – the level of home ownership has remained fairly stable in these markets, but not for Queensland.
Census data released this year (after the epic census fail of last year), shows that while the average Australian in Sydney and Melbourne is likely to live in a house and be paying off a mortgage, the same is not true of the average Queenslander who is just as likely to be renting.
While there is a lot of research indicating that this stability in home ownership won’t continue in Sydney and Melbourne, I think that for the Queensland market, it confirms the boom in investment that we have seen in the local marketplace as a significant driver of growth.
“It’s obvious why investors have been so interested in properties in Queensland and around the Upper Mount Gravatt area, specifically,” says James Bell of brad bell.
“There is no doubt that Queensland is offering more value on a brick for brick comparison to the southern markets. Even though we have seen a significant impact in foreign investments since the beginning of the year, we are still seeing many investors from down south heading to Queensland in hope of making a capital gain – feeling that Sydney and Melbourne may be heading into a plateau.”
“Not that we mind,” says James. “With zoning changes a significant development driver, upcoming investment in infrastructure and the proposed Brisbane Metro, plus unrivalled education options…I think there is definitely growth left for the local area – which is really a win for everyone.”
“The entry level is still accessible in this area for those wanting to get onto the property ladder.”
“With development, investor interest and lifestyle-centric growth factors at play – we can anticipate that the purchase of a local property will be insulated to some of those market factors which indicate that southern markets might cool off – I think there is still a lot of room for Brisbane, particularly the 4122 postcode and surrounds to be driven up – good news for those seeking to buy now; good news for those looking to sell.”
Not sure what to make of all the conflicting reports about the property market? We give you both sides and let you decide – click here to learn more.