C&G’s Guide to the Census 2016

Real Estate News

With Australia’s 2016 Census data released last week, homeownership has been a hot topic of discussion – both online and around the watercooler. Today C&G unpack the latest Census data, and explain why the property market has legs in it yet. 

The results of 2016 Census data showed an overall decline in homeownership and a rise in mortgage-less homeowners. These statistics illustrate that fewer people are buying homes, and those who elect to are doing so courtesy of longer, more costly mortgages. 

There are numerous ways to interpret key Census data around the affordability and accessibility of homeownership. The ability to borrow against home equity, or to refinance and release cash from assets means more people are splurging on holidays, investment properties and helping their children to buy their first homes. The result? Longer loan terms. What’s more, a decline in the cost of international travel and an increase in the cost of inner-urban housing sees young people settling down and buying property later in life. 

With interest rates at an all-time low, average monthly mortgage repayments are no higher than those recorded in 2006. After a steep rise between 2006 and 2011, the 2016 data showed that average monthly mortgage repayments now sit at $1755. Census results have surprised some real estate pundits, with Sydney commentators left perplexed by data that demonstrated a typical city resident had paid off their mortgage by age 38. Sydney - which has enjoyed exponential property market growth and houses a relatively youthful population – revealed Census data which showed that paying down a million-dollar mortgage before 40 is achievable.

Tenants are also spending big on accommodation, with the private rental sector growing from 20.2% - 23.6% between 2006 and 2011. Many tenants continue to rent rather than buy – some as a result of growing house prices. That said, entering the real estate market is still possible for first home buyers – with great value property to be found in proximity of capital cities and thriving towns.

As the effects of today’s low cost of borrowing begin to make their mark, the 2021 Census may provide a more accurate representation of the state of housing in Australia. 

Have you read through the latest Census data? Has it encouraged you to consider buying or selling property this winter? If so, Chisholm & Gamon can assist. Our friendly team knows the Bayside market intimately, and will be be able to provide insight into your property options.