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1 Boomers Battled Huge Interest Rates but it's a Lie they did It Tougher

Baby boomers had it much easier than the younger generations purchasing a house - regardless of having to pay exorbitantly high rate of interest.
worldbank.org
The generation born after the war were struck with massive 18 per cent rates of interest back in the late 1980s.

Those repayments were debilitating, when they were maturing in the seventies and eighties, but homes were significantly more affordable compared to normal incomes.

That was also back when Australia's population was practically half of what it is today, long before annual migration levels soared.

Baby boomer financial expert Saul Eslake purchased his first house in Melbourne's St Kilda East for $105,000 in 1984 on a $35,000 salary when he was 26, after benefiting from free university education.

With an $80,000 mortgage, he was obtaining bit more than double his pay before tax and strikes out at any suggestion his boomer generation did it tougher - in spite of the high interest rates he paid.

'I paid eighteen-and-a-half percent for some of that but my very first home expense $105,000 and it took me less than three years to conserve up the deposit,' he told Daily Mail Australia.

'Even though rates of interest are less than half what I was paying, it was no place near as difficult as now and I didn't have HECS financial obligation to settle since I belonged to that lucky generation when it was complimentary.

The generation born after the war were struck with enormous 18 percent interest rates back in the late 1980s (visualized is Terrigal on the NSW Central Coast)

'My generation had it pretty simple - we got totally free education, we got housing really cheaply and we have made a motza out of the boost in home prices that we have actually chosen.'

In 1980, priced house expense $65,000, or just 4.5 times the average, full-time male wage in a period when a woman would have a hard time to get a mortgage without a signature from her other half.

Real estate information group PropTrack estimated Sydney's typical home would cost $338,000 today, or simply 4.3 times the average income now for all Australian employees, if home rates had increased at the very same pace as wages throughout the previous 45 years.

In 2025, Sydney's middle-priced house costs $1.47 million or 14.3 times the average, full-time wage of $103,000.

But that price-to-income ratio surges to 18.7 if it's based upon the average income of $78,567 for all employees.

AMP deputy chief economist Diana Mousina, a Millennial, stated the more youthful generations were having a tougher time now conserving up for 20 percent mortgage deposit just to purchase a home.

'The issue now is just getting into the marketplace - that's what takes the bigger portion of trying to save