First-time homebuyers consider a lot of things prior to their purchase. Among these concerns is age. Several people may think they’re “too young” or “too old” to buy a home, or even get a mortgage. In truth, the difficulty of buying new home and land packages lies not solely with age ranges. But, knowing such can offer a good perspective to new homebuyers.
How Old (Or Young) Aussie Homeowners Today
ING Direct shows that the average age of homebuyers in Australia is 37.7 years. In comparison, this number is a full three years more from the previous high (34.7 years) recorded in 2005. According to the researchers, property in most states are experiencing strong growth, pushing Australians to wait longer before entering the housing market.
There’s a gradual buildup to the current numbers from the past few years. Two years ago, the 30-year-old plateau already got broken. Petra Sprekos of the real estate portal RealEstateReview.com.au claims that high prices are keeping people from the market for much longer. As a result, first-time homebuyers are predominantly 30- and 40-year-olds (57 percent). Before, 20-something people used to crowd the market.
The Senior Citizen Housing Dilemma
While 30- and 40-year-olds are experiencing an uphill real estate battle, older people are having a much harder time. Senior citizen applicants for mortgages are being asked for additional information, like superannuation balances and exit strategies. Because of this, the elderly are flocking to the Human Rights Commission for being refused home loans due to their age.
This, of course, is somewhat counterintuitive. A lot of older Australians are asset-rich. They also earn bigger salaries than the younger ones. What this means is that they pose much less risk for lenders. It should be much easier for these people to get a home loan, but it’s not the case. Apparently, they’re “too old” to be homeowners.
Affordability is among the main reasons several buyers feel unprepared to face the housing market. About a third of these people want a more flexible lifestyle as well—the ability to move when they see an opportunity. They might have to come to terms with settling down first before thinking of becoming homeowners.