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Sun. Jul 14th, 2024

‘Lucky’ Boomers reveal how much their first home cost them

By Vaseline May27,2024

Older Aussies have revealed exactly how much they paid for their first properties. And the answers have left some younger Aussies ‘crying’.

After being stopped on the streets of Sydney by property platform Coposit, homeowners have exposed just how much property prices have skyrocketed. While the figures shared don’t take into account inflation or salaries at the time (plus how high interest rates used to be), they’re still a shock to some younger Aussies.

In 1970 the average house price in Sydney was $18,700. In 1980, the average home price was about $68,850. And by 1990, the average had more than doubled to $194,000.

Aussies share how much they paid for their first propertyAussies share how much they paid for their first property

Aussies have told how much they paid for their first property. (Source: TikTok)

Fast forward to today and the average home in the nation’s most expensive city tops $1.1 million, while homes across the country are valued at $800,000.

Here’s what five Aussies candidly revealed about buying their first home.

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A Sydney woman said she was “lucky” to buy a one-bedroom house hit by DMR in 1985 for $82,000.

“(I’m) lucky to have that house now 40 years later, otherwise I wouldn’t be able to afford to buy a house at all,” she said.

The 72-year-old said she had been working two or three jobs at the same time to afford the house, which was “relative” to her income at the time.

“I think it’s much more difficult now. I think we had jobs, we had opportunities. (It’s a) very different time,” she said.

Another Australian said he bought a three-bedroom house in Ryde in 1991 for $180,000. He estimated it was now worth about $3 million.

‘I can not believe it. It is too expensive and it is too expensive for someone entering the market,” he said.

He revealed he bought a three-bedroom apartment in Parramatta for $1.2 million last year.

The man advised people to save as much as possible for their first deposit, take advantage of first home buyer schemes and buy what they could afford.

Another man said he bought his first property in Melbourne for $56,000 in 1984. He then sold that in 1992 to accommodate his growing family and bought another larger property for $300,000, where he still lives.

“It’s probably worth over $2 million now and we’ve got 30 years, almost 40 years left on it, and we’ve grown up with younger kids,” he said.

“I think it’s very difficult right now… Don’t lose hope. I know it’s very difficult to get into the market right now, given the way real estate has gone up in price.

“I think something has to change. We are probably the generation that contributed a little to that because we received benefits such as free education and favorable tax schemes.”

One couple said they paid just $28,000 for their first property 48 years ago and were able to make a 30 percent down payment.

More recently they bought a property for $550,000, but this had now increased in value to over $1 million in the last ten years.

The couple said things were “so much easier” when they bought their first property.

Another Aussie man said he bought his first property for $45,000 in 1985 while working in defense.

“It was still seen as a pretty substantial amount at the time, considering the income and things like that,” he said.

“For us it was quite a lot of money as I think interest rates were somewhere around 13 to 14 percent,” he said.

When asked if he had to make any sacrifices at the time, he said he remembers going to the grocery store and having to “put things back” to make his mortgage payments — something many families do these days.

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