Gen Y Aussies 'do not expect to pay off home loans before retiring'
Only one in 40 Generation Y Aussies expect to have paid off their cheap home loans to own their property outright by the time they retire, new data shows.
The Australian Housing and Urban Research Institute recently released a study which suggested that the number still paying off a mortgage during their retirement is set to triple by the middle of the century, reports News.com.au.
Catherine Bridge, co-author of the review, described the findings as "more alarming than we expected".
"The financial security of a house will be important to them as people will be living longer and super may not be sufficient to support them," she stated.
Five years ago, 40 per cent of people over the age of 65 owned their own abodes, 13.5 percentage points higher than the proportion still paying off their home loans.
This comes after Australians for Affordable Housing released a report suggesting a median property in Sydney costs 8.1 times more than the average annual income, up from 5.6 times higher in 2001.
Have a question about home loans? Ask the money gurus at Mozo Answers.