“Property has traditionally been seen as one of the most reliable ways to build wealth through capital growth and rental income, and to create some financial legacy for future generations,” said Nick Burgess (pictured right), property expert at Money.com.au. “But now, more people believe that opportunity is slipping away and confidence in bricks and mortar is eroding.”
Confidence lowest among older generations
The survey found older Australians were the least likely to believe they could pass on property wealth. Among both Generation X and Baby Boomers, 56% held this view, compared with 47% of Millennials and 46% of Generation Z.
Do you believe you will be able to use property ownership/investing to create generational wealth for your children?
Responses by generation
Source: Money.com.au
“Older Australians are the generation closest to passing on their wealth, so they’re naturally more sceptical about how changing affordability and investment settings could affect what they’ll actually be able to leave behind,” Burgess said. “If they’re losing confidence that property will deliver the legacy they once expected, that’s a significant shift.
“On the other hand, younger Australians are likely more focused on the challenge of buying their first property than the practical realities of one day passing wealth on to their children.”
Affordability cited as the main barrier
Asked why they no longer viewed property as a means of building generational wealth, 51% of respondents pointed to high property prices and mortgage costs as the main barrier to entering the market.