The median house price in Melbourne is tipped to reach $1 million soon. The housing market has soared almost 4.8 per cent or $45,000 over the March quarter to a record $975,000 median.
The dramatic rise in house prices is primarily due to pent-up demand during months of lockdown and people saving more money because they're not travelling overseas. Record low-interest rates also fuel growth by increasing people's borrowing capacity.
With no end in sight of the escalating house prices, it is getting more challenging for first-home buyers to enter the market. I am not sure how my two daughters will ever afford to buy a house. Regardless of how much they might have as a deposit, it will be harder to secure a purchase when bidding against existing homeowners or investors with more equity.
They may need to consider shared ownership, buying a house with a family member or a friend. However, they would need to be careful of who their share ownership with, as it can all go a little pear shape if they have a falling out with their co-owner.
But the most likely support option for getting into a house will be the support from the bank of mum and dad. We may assist with the initial deposit or repayments during the first few years of their loan. This option may relieve their short term financial stress and frustration when trying to go it alone.
The dramatic rise in house prices is primarily due to pent-up demand during months of lockdown and people saving more money because they're not travelling overseas. Record low-interest rates also fuel growth by increasing people's borrowing capacity.
With no end in sight of the escalating house prices, it is getting more challenging for first-home buyers to enter the market. I am not sure how my two daughters will ever afford to buy a house. Regardless of how much they might have as a deposit, it will be harder to secure a purchase when bidding against existing homeowners or investors with more equity.
They may need to consider shared ownership, buying a house with a family member or a friend. However, they would need to be careful of who their share ownership with, as it can all go a little pear shape if they have a falling out with their co-owner.
But the most likely support option for getting into a house will be the support from the bank of mum and dad. We may assist with the initial deposit or repayments during the first few years of their loan. This option may relieve their short term financial stress and frustration when trying to go it alone.
