Unattainable ‘Great Australian Dream’ to blame for stuck-at-home generation, Corelogic survey finds

first_imgZachary Jamieson has just bought his first house at the age of 21. Pic Darren England.MORE than 60 per cent of Queenslanders living with their parents say they can’t afford to fly the family nest, according to a new survey on housing affordability.Home ownership is increasingly out of reach, but nine out of 10 Queenslanders are still holding on to the great Australian dream, the Galaxy Research survey commissioned by property data firm, Corelogic, reveals.The survey of 2000 Australians aged between 18 and 64 found a growing proportion of younger generations are finding themselves trapped in the family home — increasingly into their 30s — as they try to scrape together a deposit.Nationally, 1 in 5 millenials expect to be locked out of the property market until at least their 30th birthday.But Queenslanders still living at home are the most motivated to move out and buy, with nearly half saving money towards a deposit.The survey found getting the deposit was one of the biggest impediments to buying a home, with a third of Australians admitting they could not manage 10 per cent.It comes as the nation’s biggest mortgage insurer this week raised concerns about industry pressure on borrowers to have larger deposits.Genworth Mortgage Insurance said home buyers were scraping together deposits with forms of “unsecured debt”, such as parental guarantees — something Zachary Jamieson has taken advantage of.HOW MUCH OF A DEPOSIT CAN FIRST HOME BUYERS AFFORD?13% no deposit35% could put down 1-9%27% could put down 10-19%18% could put down over 20%(Source: Corelogic)The 21-year-old saved for a year for a deposit for his first home while living with his father, but ended up asking him to act as a guarantor for a loan.“I only had to pay a small amount of rent while I was living there, so it did make all the difference,” he said.“I definitely wanted to get into the market early because I could see myself getting comfortable and just staying there forever.”He bought a two-bedroom home in Waterford West for $255,000 a month ago and now spends half his weekly wage on mortgage repayments.“It’s just a matter of staying on top of it and making sure you’re budgeting in a smart fashion,” he said.GETTING A DEPOSIT AN IMPEDIMENT TO AFFORDING A HOME48% = Qld47% = WA46% = Tas44% = Vic42% = NSW42% = SA/NT38% = ACT(Source: Corelogic)Ray White Waterford principal Kate Handley said about 30 per cent of her agency’s clients were first home buyers and it was becoming more common for them to seek financial assistance or guarantees from parents to get on the property ladder.She said it was still common for first home buyers to be priced out of the market by investors competing for the same property.“It’s really disappointing for them and we see it happen a lot,” she said.When it comes to housing affordability, the Corelogic survey found 60 per cent of Queenslanders believe it is worse than it was last year and just as many expect it to worsen further next year.CONCERN ABOUT HOUSING AFFORDABILITY71% = ACT68% = NSW66% = Vic63% = Tas60% = Qld56% = SA/NT44% = WA(Source: Corelogic)Corelogic’s director of research Tim Lawless said that was significant given home values had increased substantially more in NSW and Victoria than in Queensland.“Income growth is lower in Queensland, which is probably one of the reasons behind the more pessimistic outlook,” he said.But it’s not just would-be first home buyers who are struggling.The research also reveals 12 per cent of Queensland homeowners are having difficulty paying their mortgage — the second highest number in the country after Tasmania.WHICH STATES ARE STRUGGLING MOST WITH MORTGAGE STRESS?Tas = 13%Qld = 12%WA = 12%SA/NT = 8%Vic = 6%More from newsMould, age, not enough to stop 17 bidders fighting for this home5 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor5 hours agoNSW = 5%ACT = 4%(Source: Corelogic)And this figure would jump to 28 per cent if interest rates increased by up to 1 per cent.The younger generation is the most vulnerable when it comes to mortgage stress.If interest rates rose by up to 1 per cent, 35 per cent of millennials claim they would struggle to keep up with mortgage repayments.“A lot of affordability challenges are embedded with the millennial generation,” Mr Lawless said.He was surprised the survey found 96 per cent of Australian millenials thought owning a home was important.“I thought attitudes among younger generations had changed a little bit and the desire for home ownership had dissipated,” he said.Ahead of the federal budget being handed down on Tuesday, respondents revealed what they believe could be done to improve housing affordability.Three quarters of Queenslanders think removing or reducing stamp duty would help, while a majority also think more jobs should be created in areas that have lower priced housing.STRATEGIES FOR IMPROVING AFFORDABILITY73% — Reduce or remove stamp duty72% — Reduce or remove stamp duty for first home buyers71% — Create government grants or concessions for first home buyers65% — Create more jobs in areas with lower priced housing63% — Appoint a federal housing minister to improve affordability61% — Improve transport options and commuting60% — Release more vacant land57% — Limits on investment buying via regulation57% — Reduce costs paid by developers to build new homes53% — Build apartments close to major work centres51% — Reduce overseas migrants arriving in Australia(Source: Corelogic)“In reality it’s a federal, state and local government issue and involves each of those layers of government working together to manage housing demand and deliver appropriate housing supply, and ensure supply is connected with efficient transport infrastructure,” Lawless said.And he said there were conflicting interests in each layer of government.“When you look at the level of dwelling supply in southeast Queensland, there has been quite a bias towards dense stock which has outnumbered detached dwellings,” he said.“High rise apartments are more skewed towards investor demand, yet you’ll find the vast majority of first home buyers are young families.”The full Corelogic report can be found at www.corelogic.com.au/housingaffordability.last_img read more

Syria’s ‘brutal’ war enters 10th year

first_imgAt least 384,000 people have since died,including more than 116,000 civilians, the Syrian Observatory for Human Rightswar monitor said Saturday. (AFP) When Syrians took to the streets onMarch 15, 2011, they could scarcely have imagined their anti-governmentprotests would turn into a complex war entangling rebels, jihadists and outsideforces. SYRIA’S brutal conflict enters its 10thyear Sunday with President Bashar al-Assad’s regime consolidating its hold overa war-wracked country with a decimated economy where foreign powers flex theirmuscle.center_img Syria’s war has killed hundreds of thousands of civilians and displaced millions. AFPlast_img

Vigil held Tuesday for student injured in fall

first_imgThe Sigma Nu fraternity held a vigil Tuesday night for student Jackson Roddy, the freshman who fell from the sixth floor of Birnkrant Residential College early Monday morning.The vigil brought more than 100 students together in prayer to show support for Roddy, who is at California Hospital in critical condition with severe injuries.Police are still investigating the cause of the fall, according to Department of Public Safety Capt. David Carlisle.Brian Huefner, president of Sigma Nu, the fraternity Roddy is pledging, said Roddy was awake for short periods of time Tuesday.“We’re taking it one surgery at a time, one day at a time,” Huefner said. “It’s a blessing that he has everyone here for him.”According to Huefner, it will take one to two weeks before Roddy will be fully awake and possibly accept visitors.John Lee, a freshman majoring in biological sciences, attended the vigil on Tuesday.“It was pretty emotional. I’ve hung out with him quite a bit. He’s a good kid,” Lee said.Others said the vigil has a powerful message.“I thought it was a beautiful thing where everyone on The Row could lend support and prayer, and unite as one to wish for his healing,” said Amanda Borland, a freshman majoring in business administration.President C.L. Max Nikias visited Roddy on Tuesday and met with the family, according to Vice President for Student Affairs Michael L. Jackson.“His family is very appreciative of all the support they are receiving from the university,” Jackson said in an e-mail.Roddy’s pledge brothers decided to create a “24/7 prayer.” People are invited to sign up for 15-minute time slots to ensure that someone is always praying for and thinking of Roddy.“As long as he’s doing OK, I’m doing OK,” said Colby Audette, Roddy’s pledge brother. “Constant prayer can’t hurt; it’ll only help.”A Facebook page, “Prayers for Jackson Roddy,” was also created in support for Roddy on Tuesday.“The fact that he survived the fall is a miracle. Adding to the miraculous is he appears to have no head trauma or neck injury,” a post on the page said. “The outpouring of support has been amazing. Don’t take our reluctance to talk as a lack of appreciation. We just have a lot to process … keep those prayers coming.”Students seeking counseling or support can contact Student Affairs at (213) 740-2421 or the USC Student Counseling Services at (213) 740-7711.last_img read more