Although property ownership might be the great Australian dream, it could be some time before younger generations are ready to make those first steps onto the ladder. This is according to recent research from Suncorp and the Financial Basics Foundation, which has found there's a knowledge gap when it comes to the financial issues surrounding buying property in Allawah.
Over 80 per cent of the high school students questioned said they believe they know how to use credit wisely. However, when asked to calculate the amount of interest payable on a loan, only a third were able to come up with the right figure.
"Without basic money management skills, the risk of future debt problems and finance worries increase dramatically," noted Suncorp banking and wealth CEO John Nesbitt.
"The ability to manage yourself financially is as important as reading and writing. It's essential to give young people the tools they need to become prepared for the financial challenges of adult life."
This follows on from recent CommBank findings, which found that around half of homebuyers believe the median home price in their capital city is higher than it actually is. The study also shed light on people's lack of understanding of financial issues, as only 55 per cent of the adults polled could identify issues that would affect their ability to borrow.
CommBank urged people who are thinking about buying property in Allawah or other parts of the country to make sure they have a fairly accurate idea of prices and other financial information. This will help ensure they build a big enough deposit and take out a home loan that will meet their needs both now and well into the future.
For help getting onto the Sydney property ladder, make sure you speak to the team at Ray White Carlton today.