According to property experts -”The young Australians are more interested in rental homes rather than buying a home.”
As per the report – In the last 15 years, the rate of private rentals raised from 23 percent to 28 percent and very less number of people are buying their own homes. The reason behind this is raised dwelling prices and uncertainty in the employment.
In the period of 2013-2016 in Melbourne, only 10 percent of the renters moved toward homeownership, which was 13.6 percent in the year 2001-2004.
The adults between 35-44 age group, only 9.8 percent of people are moving into homeownership 2013-16. Which was 15 percent in 2001-2004. Which is relatively high in a 55-64 age group that is 11.6 percent in 2013-16.
The major reason behind not buying the home and increase in a number of the renter is high dwelling prices, but according to the property valuer Melbourne, the reason of the increase in renters and decrease in homeowners is the affordability and the high-interest rates are not allowing them to pay for the home loan.
Some households aren’t interested in purchasing a house because the risk is associated with the rise in the interest rates. People think they will end up with much larger repayments as a share of their income that they won’t be able to afford.
Geographical location is the biggest concern in the minds of people. Buying a home where access to the market, city, public transport, schools, hospitals, offices are more expensive and most people like to live in these areas only. This increases the demand among the buyers and ultimately makes the prices of these areas high.
So the people have to choose from two – either find a location where houses are less expensive where they can afford to buy a home or else find a location for rental purpose where their interest lies. And most are choosing rent over homeownership.
It is also seen among some young Australians that are becoming ‘re-investors’. They are choosing to live in the location where they want to live in on the rental basis and buying property in the area where they can afford that is for investment purpose.
Though these kinds of renters are increased who owns some property elsewhere but currently living as a renter. This is something called ‘trade-off’, that people have the potential to buy a home but not the place where they are living.
Most young Australians choosing to stay at their parent’s home. Thus the increase in households in Australia where multiple generations are living together in the same house as a result of increase in cultural diversity has been noted in these homes.
Property valuer says – “There are many communities where a lot of people living in a traditionally, multi-generational environment (when living with parents and grandparents) is just a common thing.”
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