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<br>Baby boomers had it much easier than the more youthful generations buying a home - despite having to pay exorbitantly high rates of interest.<br> |
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<br>The generation born after the war were hit with massive 18 percent rate of interest back in the late 1980s.<br> |
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<br>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.<br> |
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<br>That was also back when Australia's population was almost half of what it is today, long before annual immigration levels skyrocketed.<br> |
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<br>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.<br> |
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<br>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.<br> |
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<br>'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.<br> |
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<br>'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](https://avitotanger.com) when it was free.<br> |
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<br>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)<br> |
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<br>'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.'<br> |
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<br>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.<br> |
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<br>Real estate information group PropTrack estimated Sydney's average home would cost $338,000 today, or just 4.3 times the [average income](https://housingbuddy.in) now for all Australian workers, if home costs had increased at the same speed as salaries during the previous 45 years.<br> |
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<br>In 2025, [Sydney's middle-priced](https://patrimoniomallorca.com) home expenses $1.47 million or 14.3 times the average, full-time wage of $103,000.<br> |
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<br>But that price-to-income ratio surges to 18.7 if it's based upon the average income of $78,567 for all employees.<br> |
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<br>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.<br> |
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<br>'The problem now is just entering into the market - that's what takes the larger piece of trying to conserve |
