Why Australia is a rent king: Why it’s expensive and why we should buy now

Australia’s housing market is far from healthy, and the current level of home ownership is unlikely to recover anytime soon.

A lack of demand for rental accommodation has been a major concern for many economists since the financial crisis, and while there is a large number of Australians with no home to rent, there are many who are finding that their options for a new home are limited.

The cost of owning a home in Australia has become the main reason many Australians choose to buy.

“If we are going to have to rent for long periods of time, we will need to get used to paying more for a property,” economist Robert Leckie said.

According to the Reserve Bank, home ownership costs about $50,000 per annum, with mortgage rates as high as 7 per cent.

But, Mr Leckies research also shows that people who are able to save for a down payment and get a deposit into a property before the loan period expires will pay less for a home than those who don’t have the means to do so.

This is because the majority of home owners who do have a deposit are likely to save it for their deposit and have the option to withdraw it later if their income falls.

If you or anyone you know needs help with a financial problem, call Lifeline on 13 11 14 or visit the Australian Red Cross website.

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