Love the idea of building a property portfolio but struggle to imagine how you will ever get your foot on the property ladder?
Perhaps the latest data on the average age of 1st home buyers will make you feel more comfortable.
There is no denying that it is the Australian dream to buy a house young. An important step that most people believe will ensure they retire wealthy. But how many of us actually buy a house young?
Not many, new research shows.
First home buyers in Australia are closer to 40 than 20, according to new data from Money.co.uk. So if you’re feeling left behind the pack – don’t.
In Australia, the data reveals that the average first home buyer is 36. In comparison to other countries around the globe, we are towards the older end of the spectrum.
Relatively close to us on the scale is Switzerland, where it takes the most time to get on the property ladder. Swiss first home buyers are, on average, 48 years old.
According to the report, just 37.4 per cent of Swiss own their own home, despite having the second-highest salary of all countries surveyed. That’s due to property prices being so high. The average price of a two-bedroom home in Switzerland is nearly $1,000,000.
The youngest first home buyers are in Belgium and Iceland, with these European and Nordic buyers being just 27 when they embark on their first purchase into the property market. It’s unsurprising that Icelanders are the youngest of the bunch, with research showing Icelanders also earn the highest annual salary of all the countries in the survey.
In New Zealand, the average first home buyer is 35, while in the United States, they are 33 – as shown in the data below:
Property prices in Australia
Australia’s housing markets proved to be incredibly resilient through COVID-19, defying the doomsday forecasts predicted by news analysts as the pandemic hit. Australia’s wide array of property markets are likely to return to pre-covid highs as early as January 2021, new data reveals.
The CoreLogic housing value index showed property prices in all capital cities rose over the month of November – including Melbourne.
“The national home value index is still seven tenths of a per cent below the level recorded in March, but if housing values continue to rise at the current pace we could see a recovery from the Covid downturn as early as January or February 2021,” CoreLogic’s head of research, Tim Lawless said.
More people may be tempted by the housing market now, with interest rates confirmed to remain at record lows for “at least 3 years”, RBA governor Philip Lowe said in announcing the December cash rate decision.
The rise in corporate acceptance of a remote workforce is also providing a valuable opportunity for first home buyers to enter much more affordable property markets outside of the city boundaries and transition to regional hotspots.