According to Property Analyst Michael Yardney, median house prices are going to be over $1 million in every capital city by 2019. This means that for all the 21 year-olds graduating from university this year with HECS debt, and all the cost pressures they’ll discover as they enter working life, the Great Australian Dream of home ownership is moving further out of reach with every passing day.

Baby boomers are out in the investment market in full force. They are using the equity from their family home – which many have paid off and own outright by now – as a deposit to purchase investment property. They then use the growth in equity on the first investment to buy another one. And so the cycle continues. But are the Gen Ys being left behind?
Investors who are already in the market, or who are about to enter it will enjoy tremendous asset growth if they choose to hold their properties for at least 10 years. They already have a healthy nest egg to get them through retirement.

But if prices are going to rise so dramatically, what is the outlook for Gen Y? Will the majority remain renters from Baby Boomer landlords until the possibility of inheritance pops up? Will only those who have the foresight to get into the property market in their (very) early 20s be able to achieve the Great Australian Dream of a quarter acre and a backyard, or possibly a unit instead?

If you have Gen Y children, and have equity in your home, you are in a position to help them get a start. You could do this be enabling them to access this equity for the deposit they need to get into the market, buy a joint investment property, or similar.

Property is going to become less attainable and substantially more expensive for Gen Y investors. So why not help them get a foot on the ladder?

If you would like to learn more and discuss how McCarthy Group can assist you, click here.