A resurfaced interview from almost exactly seven years ago of Anthony Albanese talking about the housing crisis has come back to haunt the Prime Minister.
On November 25, 2016, when Mr Albanese was Labor’s shadow minister for infrastructure and cities, he told Channel 9’s Today show that young people had less and less chance of ever becoming homeowners.
He said it was ‘an issue that Australians know is an issue for their kids and their grandkids. They’re being frozen out of the (housing) market.’
Seven years later, the now Prime Minister is leading a government where home ownership for huge numbers of young Australians is more unattainable than ever after 12 interest rate rises since he came to power.
A recent poll showed that 54 per cent of Aussies on middle incomes and 63 per cent in the low income bracket think they will never be able to afford their own home.
A resurfaced interview from almost exactly seven years of Anthony Albanese (pictured with his partner Jodie Haydon) talking about the housing crisis has come back to haunt him
House prices in Australian cities have surged by double-digit figures in less than a year despite 13 interest rates rises in 18 months that have seen the cash rate soar to 4.35 per cent.
Twelve of those rate rises have come since Labor won the last federal election in May 2022.
In late 2016, Mr Albanese said Australia was ‘in danger of developing a society whereby some people are able to buy their sixth, seventh, eighth home, but people trying to get into the housing market to buy their first home, simply aren’t able to’.
The Prime Minister rakes in an estimated $104,520 a year renting out his two Sydney homes as he lives rent-free in the taxpayer-funded Lodge.
On top of his salary of $586,768, Mr Albanese now has an income of $691,288 – more than seven times the average full-time Australian salary of $95,581.
Property expert Michael Yardney said he was not surprised by how many people had abandoned hope of becoming a homeowner given the average price of homes.
‘There is no doubt that it is harder for first time buyers to get into the property market at present,’ he told Daily Mail Australia.
In November 2016, when Anthony Albanese (pictured at the time) was Labor’s shadow minister for infrastructure and cities, he said young people had less and less chance of ever becoming homeowners
Economist Saul Eslake, who has long been a critic of Australia’s housing policy, said the situation had become so bad it is undermining the living standards of coming generations.
‘I don’t understand why younger people today aren’t out on the streets, protesting against their parents and their grandparents for what they’ve done to the cost of housing in this country,’ he said earlier this year.
Australia’s spiralling house prices is happening in tandem with record-high immigration and a 40 per cent plunge in building approvals in little more than two years, as construction companies collapse.
Sydney, the recipient of a large share of overseas migration, saw its median house price climb by 10 per cent in the year to October to $1.397million.
Brisbane has seen its mid-point house price rise by 10.3 per cent since the start of 2023 to $860,465, putting it further beyond the reach of average-income earners.
Perth, Australia’s most affordable state capital city market, saw its median house price soar by 11.1 per cent since January to $660,069.
Melbourne, another major host of overseas immigration, has seen a more subdued 4.1 per cent increase since January, taking the median house price to $937,736.
In the year to August, 413,530 permanent and long-term migrants arrived in Australia.
This net intake, including skilled migrants and international students, looks set to surpass Treasury’s 315,000 forecast for 2023-24 made in the May Budget.
During the last financial year, only 168,231 private homes were built, with 27,213 finished in June 2023, an 11 per cent drop from 30,685 in March 2022.
An astonishing two-thirds of young Australians have given up on ever owning their own home, a shock survey revealed
With an average of 2.5 people per home in Australia, the 420,578 people they would theoretically house was well below the annual population increase of 563,200 in March, covering both net overseas migration and births minus deaths.
The housing shortage is set to continue with 8,338 new houses approved in September, a sharp 39 per cent drop from 13,717 in May 2021 when Australia was still closed to foreigners.
The slowdown in new homes, both being built or completed, is also occurring as higher building costs leads to construction company collapses.
And all of the resulting housing pressure has come on top on Mr Albanese pointing out seven years ago when he was in opposition that young Australians were ‘being frozen out of the (housing) market’.
How to save for a deposit while you’re renting
Work out your deposit size and price range
Do some research on where you want to buy, what sort of property you’re interested in, and be realistic about how much you can afford to pay in monthly home loan repayments.
This will help you determine your deposit size and give you a realistic saving target.
Create a budget
As a general guide (and depending on your lifestyle needs), you should allocate around 50 per cent of your income on living expenses (such as rent, transport, insurance and utilities), 25 per cent of your income on entertainment (such as dining out, movies and concerts) and roughly 25 per cent should go towards your savings.
Around 15 per cent of the amount you’re saving should go directly towards your deposit fund.
Find more ways to cut back on spending
Find a roommate, move to a cheaper suburb or consider downsizing to a smaller or older place. If you’re currently paying $300 per week in an inner-city location, consider moving to an outer suburb location where you might pay just $200 per week.
A $100 weekly saving may not seem like much, but this could add over $5,000 to your savings account each year, which could fast-track your way into the real estate market.
Look for a higher interest savings account
Open a high interest account that is dedicated to your deposit savings. You can separate your deposit funds from your other accounts and keep track of how much interest you’re earning each month.
When it comes to applying for a home loan, making regular deposits into a high interest savings account will demonstrate to the lender that you have good financial discipline.