Can Gen Y’s afford an investment property
Baby Boomers to rescue Gen Y investment property woe's
These days with the price of properties being about 10 times the annual, average wage, how is a Generation Y going to afford an investment property? Well the answer for a lucky few are via their baby boomer parents who can leverage off the equity in their investment property or even the family home that now has been either fully paid off or the majority of the mortgage.
“1 in 5 Gen Y’s could not afford an investment property without their family’s help”
According to Australian Property sources, a staggering 1 in 5 Gen Y’s would not be able to afford a investment property without their parents property investment help. A one in five may not sound like a big statistic, however was this the case back in the day of the Baby Boomers? Two decades ago, it was the norm for the husbands wage to be able to cover the mortgage, while the new mum-to-be would have been busy toting a new baby bub, so their property investment path was on course to help them for their retirement and future in general.
With the year being 2011, it is now only possible for the majority of Gen Y’s getting into the property market by combining both wages, to be able to scrape together the property deposit needed for the financing and, most likely, struggle from that point on to securely make the investment property repayments.