Posted: 10 October, 2016
If You Don’t Own A House By This Age Then You’ll Probably Never Own One
A new study has pinpointed the age at which home ownership becomes out of reach for most people.
Those who have not bought a home by their late 40s (45-49) are unlikely to ever do so, according to a paper released by Swinburne University.
The study shows that an increasing number of older renters experience housing insecurity and impoverishment. There are approximately 426,000 Australians over the age of 50 living alone or with a partner in a private rental. Population projects suggest this could grown to 832,319 by 2050.
“That will put a lot of pressure on the pension system and even more pressure on the rental market, which does not cater to older people on low incomes as it is,” National Shelter executive officer Adrian Pisarski said.
The study’s authors believe that capital gains tax concessions should be axed, and death duties should be reinstated to reduce the wealth gap between homeowners and renters.
“Housing is a probably the key way of generating wealth, but people who are unable to purchase or fall out of home ownership will find that they don’t have as much wealth in retirement,” research author Andrea Sharam said.