A young Aussie has exposed a significant problem with house hunting in Australia.
Bailey, 25, who is trying to buy an apartment in Sydney, revealed that the ‘bank of mum and dad’ was helping the majority of his competition.
‘I have some really bad news if you’re like me and your house hunting in Sydney or the rest of Australia,’ Bailey said in a video posted to social media.
‘I was house hunting on the weekend, and every inspection I went to, there were people my age and in their mid-thirties.
‘And they were speaking to their parents, and I could kind of hear them on the side. The parents are like, ‘Oh, we can do this price, we can do that price’.
‘And I’m like far out, like how many people are getting help from their parents?’
Bailey claimed 60 per cent of buyers were getting help from their parents, who would loan them an average of $100k to cover the deposit.
‘And I’m like, s***,’ he continued.
‘So if you’re like me and you’re out there looking for a home right now, 60 per cent of your competition probably gets help from their parents.
‘And that’s usually around 100 grand. Good luck.’
Bailey told Daily Mail Australia the search for an apartment had been ‘disheartening’.
‘It’s one thing to attend an open home with long queues, but it becomes even more daunting when the inspection is filled with parents of potential buyers equipped with the necessary equity and cash,’ he said.
Bailey (pictured) said the majority of his competition were getting help from their parents
Viewers shared their own experiences of the housing market on Bailey’s video.
‘I got more than 100k, it’s so important to not compare or get disheartened if you’re wondering how others your age somehow managed it,’ one woman said.
‘I’m single and work part-time because I’m disabled so I’d never have managed a deposit myself – ever – but I know so many people who got money and wont admit it.’
‘My parents helped my sibling with $150k so the other three of us just have to sit this one out I guess,’ a second wrote.
A third shared: ‘I got nothing. but I do think it’s important for parents to help you achieve goals. I’ll be saving for my daughter with the hope of helping her one day.’
Bailey strongly criticized the current state of Australia’s housing market.
‘I created a video expressing my frustration with the current state of affairs. However, the comments highlighted that we are in a scenario where many people require parental support to even contemplate buying a home.’
Sydney’s median house price has this year surged by 12.5 per cent to an even more unaffordable $1.397million, CoreLogic data showed, despite the RBA’s rate rises.
An average-income earner on a $95,581 salary would barely get bank approval to borrow $573,486, or more than six times their salary.
![](https://i.dailymail.co.uk/1s/2024/01/24/02/80390745-12998851-image-m-16_1706064902163.jpg)
The majority of young Aussies entering the property market are helped by their parents (stock)
But if they could get a mortgage, a 20 per cent deposit of $143,368 would be needed just to buy a $716,841 home, which would buy a unit in Sydney or an outer suburban house in Melbourne.
University of Newcastle youth sociologist Julia Cook revealed the amount of buyers receiving assistance from their parents has increased by fivefold in the last decade.
‘We know that in 2010 around about 12 per cent of people [who were] first home buyers were getting assistance from the bank of mum and dad,’ she told the ABC.
‘It got up to about 60 per cent from 2017 onwards, so it’s grown enormously.’
A survey of 282 mortgage brokers showed younger borrowers were receiving $92,000 from their parents, on average.
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Read more at DailyMail.co.uk