Economist tells young Australians to rent, not buy

Font Size:

Deloitte Access Economics economist Chris Richardson told the National Press Club on Wednesday that right now younger Australians should be looking to rent, not buy.

“The one bit of advice I give to young Australians is right now you know…amid our housing markets of the moment is ‘don’t buy’,” said Mr Richardson.

Mr Richardson is one of many economists who has continued to suggest that inner-city properties are over-priced and set to tumble by as much as 15 per cent in Brisbane and Melbourne by 2019.

Deputy Prime Minister Barnaby Joyce weighed in on the debate by suggesting there was no national housing crisis and that if people are unable to buy in capital cities, they should consider moving to regional areas.

Findings from the Retirement Affordability Index 2017, produced by YourLifeChoices and The Australia Institute, showed that retired single renters spend on average almost 30 per cent of their income on housing, which is the rate at which people are considered to be in ‘housing stress’. This is a stark comparison to the 10 per cent retired single homeowners on an Age Pension spend on housing. These findings suggest that the first priority of any Australian should be to purchase a residence to ensure a more comfortable retirement later in life.

Do you believe younger Australians should be looking to invest in housing despite the warnings of Mr Richardson, or is renting a very reasonable option for the following three to four years to allow the market to settle? Do you expect property prices in Sydney, Melbourne and Brisbane ‘correct’ any time soon?

Read more from abc.net.au
Read more from afr.com

RELATED LINKS

Housing affordability not an issue

The Government's 20-month inquiry into housing affordability gave its findings on Friday.

Our research shows retirement renters are doing it toughest

Scott Morrison needs to consider housing affordability for retiree renters.

Written by Drew

Starting out as a week of work experience in 2005 while studying his Bachelor of Business at Swinburne University, Drew has never left his post and has been with the company ever since, working on the websites digital needs. Drew has a passion for all things technology which is only rivalled for his love of all things sport (watching, not playing).
Contact:
LinkedIn
Email



SPONSORED LINKS

Sign-up to the YourLifeChoices Enewsletter

continue reading

COVID-19

Australian doctors call for calm over coronavirus vaccine blood clots

Doctors have demanded the media be much more cautious in the way blood clot cases are reported in people who have...

Technology News

Research shows people trust computers more than humans

Computers continue to defy expectations about their capabilities, and it is happening at a much faster rate than most people...

Relationships

How to handle conversations with a relative expressing racist views

The Duke and Duchess of Sussex's interview with Oprah Winfrey highlighted an issue that many people will relate to -...

Lifestyle

Friday reflection: Why is packaging so difficult?

Is it just me or do others over 50 struggle with opening things? Why is packaging so difficult? It seems...

Finance News

2021's top 100 most reputable brands

Reputation is everything - in business and in life. It's hard won, but easily lost. It can cost politicians their...

Health news

Best treatment for bedtime performance anxiety

Trying to sleep produces a kind of performance anxiety, and the more you worry about it, the worse your sleep...

Finance

Five mistakes to avoid when investing in property

Investing in property can be a complex and overwhelming journey, particularly for first-time investors. If you are thinking about investing...

Competitions

Score a double pass to see Supernova

In two minutes, I was brought to tears. That's about how long the trailer for Supernova lasts. It's the new...

News

Perfect Sticky Toffee Pudding

This is perhaps my favourite cake of all time. It’s moist and slightly chewy, and it tastes like holidays in...

LOADING MORE ARTICLE...