Interest rate risk for under-40s as debt burdens
02 August 2017
The average mortgage burden on home owners aged under 40 doubled between 2002 and 2014 leaving them especially vulnerable to rising interest rates, a leading household survey shows.
The latest instalment of the respected Household, Income and Labour Dynamics in Australia (HILDA) Survey, released on Wednesday, demonstrates how high house prices are affecting the lives of young people in Australia's big cities.
After taking account of inflation the average mortgage among 18 to 39-year-olds ballooned from $169,201 in 2002 to $336,586 in 2014, a real increase of 99 per cent.
The survey also revealed a huge rise in the share of young adults living longer with their parents. In 2015, 60 per cent of men aged between 22 and 25 were living in their family home, up from 43 per cent in 2001. For women in that age group, 48 per cent were living in the family home in 2015 compared with 27 per cent in 2001.
Read More: http://www.smh.com.au/national/interest-rate-risk-for-under40s-as-debt-burden-balloons-20170801-gxnadg.html