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?