Securing wealth for the next generation

While research reveals nearly two thirds of Australian parents are worried their children won’t be able to buy their own home, the news isn’t all bad says Property Council chief Ken Morrison.

Australia Today finds the cost of living – and the impact it will have on future generations – is a major cause of concern for many Australians.

The study, undertaken by Ipsos on behalf of National Australia Bank’s MLC wealth division, finds a third of Australian parents believe their children won’t be able to live the same lifestyle as them.

And 58 per cent of the 2000 people surveyed agreed that the next generation would never own their own homes and would be forced to rent throughout their lives.

Andrew Hagger, chief executive officer at MLC, says there’s a lot of work to be done to help the nation feel confident in its collective future.

“It’s concerning to see so many people worried about how their children will afford their own homes and live a comfortable lifestyle,” Hagger says.

However, Property Council chief executive Ken Morrison says the survey reflects what Australians already know – that owning a home is one of the best ways to become financially secure.

“In a time when governments are thinking short –term about our standards of living, Australians are thinking long term – and they are worried that the policy failures of successive governments will prevent their children from realising their own Great Australian Dream,” Morrison says.

But while Australians are increasingly anxious about the future, Morrison says it’s not all bad news.

“Around 70 per cent of Australian households either own or are paying off their own home.

“House prices have stabilised across the country, interest rates are low and rents have actually stabilized or are actually falling in most of our major cities.

“We keep working at removing the blockages to supply, because it is supply that will keep pressures off housing. Tax reform is also vital because we have loaded up property with $72 billion in taxes a year.

“This is not the time to load up the sector with more taxes. Proposed changes by the Opposition to negative gearing and capital gains tax are projected to raise $32 billion over ten years. These changes are a risk to an industry that is helping Australia through its current economic transition.

Download MLC’s Australia Today whitepaper.