Young Aussie exposes huge problem with house hunting in Australia – and it’s more common than you think

A young Australian has exposed a significant problem with house hunting in Australia.

Bailey, 25, who is trying to buy an apartment in Sydney, revealed the ‘bank of mum and dad’ helped out most of his competition.

“I have some very bad news if you, like me, are house hunting in Sydney or the rest of Australia,” Bailey said in a video posted to social media.

‘I was house hunting at the weekend, and every inspection I went to there were people my age in their mid-30s.

“And they were talking to their parents, and I could kind of hear them next door. The parents say, ‘Oh, we can do this award, we can do that award.’

“And I’m so far away, how many people get help from their parents?”

Bailey claimed that 60 percent of buyers received help from their parents, who loaned them an average of $100,000 to cover the down payment.

“And I’m like, s***,” he continued.

“So if you’re like me and looking for a home right now, 60 percent of your competition is probably getting help from their parents.

‘And that’s usually around 100,000. Good luck.’

Bailey told Daily Mail Australia the search for an apartment had been “daunting”.

“It’s one thing to attend an open house with long lines, but it becomes even more intimidating when the inspection is filled with parents of potential buyers who have the necessary equity and cash,” he said.

Viewers shared their own experiences with the housing market on Bailey’s video.

“I have over 100,000, it’s so important not to compare or get discouraged wondering how others your age somehow managed it,” one woman said.

‘I’m single and work part-time because I’m disabled, so I would never have put down a deposit myself, but I know so many people who have been given money and don’t want to admit it.’

“My parents helped my sibling out with $150,000 so the three of us will just have to wait this out I guess,” wrote a second.

A third shared: ‘I have nothing. but I do think it is important for parents to help you achieve goals. I’m saving for my daughter, hoping to help her one day.’

Bailey was sharply critical of the current state of the Australian housing market.

‘I made a video expressing my frustration with the current state of affairs. However, it appears from the comments that we are in a scenario where many people need the support of their parents to even consider buying a house.”

The average house price in Sydney has risen 12.5 per cent this year to an even more unaffordable $1.397 million, CoreLogic data shows, despite RBA rate hikes.

An average income earner with a salary of $95,581 would barely get bank approval to borrow $573,486, or more than six times their salary.

The majority of young Aussies entering the property market are helped by their parents (stock)

But if they could get a mortgage, a 20 per cent deposit of $143,368 would be needed to buy a $716,841 house alone, which would buy a condo in Sydney or a suburban house in Melbourne.

Youth sociologist Julia Cook from the University of Newcastle revealed that the number of buyers receiving help from their parents has increased fivefold in the past decade.

“We know that in 2010, about 12 percent of first-time homebuyers got help from mom and dad’s bank,” she told the paper. ABC.

“As of 2017, that has increased to about 60 percent, so it has grown enormously.”

A survey of 282 mortgage brokers found that younger borrowers received an average of $92,000 from their parents.