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1 Boomers Battled Huge Interest Rates however it's a Lie they did It Tougher

Baby boomers had it much easier than the more youthful generations buying a home - despite having to pay exorbitantly high rates of interest.

The generation born after the war were hit with massive 18 percent rate of interest back in the late 1980s.

Those payments were debilitating, when they were coming of age in the seventies and eighties, but homes were considerably more affordable compared to common earnings.

That was also back when Australia's population was almost half of what it is today, long before annual immigration levels skyrocketed.

Baby boomer economist Saul Eslake bought his very first house in Melbourne's St Kilda East for $105,000 in 1984 on a $35,000 salary when he was 26, after gaining from complimentary university education.

With an $80,000 mortgage, he was borrowing little bit more than double his pay before tax and hits out at any tip his boomer generation did it tougher - regardless of the high rate of interest he paid.

'I paid eighteen-and-a-half percent for a few of that but my very first home cost $105,000 and it took me less than three years to conserve up the deposit,' he informed Daily Mail Australia.

'Despite the fact that rates of interest are less than half what I was paying, it was no place near as difficult as now and I didn't have HECS debt to pay off due to the fact that I became part of that fortunate generation when it was free.

The after the war were struck with huge 18 percent rate of interest back in the late 1980s (imagined is Terrigal on the NSW Central Coast)

'My generation had it pretty easy - we got totally free education, we got housing really cheaply and we have actually made a motza out of the increase in house rates that we have chosen.'

In 1980, Sydney's mid-point priced house cost $65,000, or just 4.5 times the average, full-time male wage in an era when a female would have a hard time to get a mortgage without a signature from her hubby.

Real estate information group PropTrack estimated Sydney's average home would cost $338,000 today, or just 4.3 times the average income now for all Australian workers, if home costs had increased at the same speed as salaries during the previous 45 years.

In 2025, Sydney's middle-priced home expenses $1.47 million or 14.3 times the average, full-time wage of $103,000.

But that price-to-income ratio surges to 18.7 if it's based upon the average income of $78,567 for all employees.

AMP deputy chief economic expert Diana Mousina, a Millennial, said the more youthful generations were having a harder time now saving up for 20 per cent mortgage deposit simply to purchase a home.

'The problem now is just entering into the market - that's what takes the larger piece of trying to conserve