Cost of property has blown out. Rents have needed to increase to make the abysmal yields look less embarrassing. This means that the average home buyer of the future will not be able to save a deposit. The property market will eat itself;
ONE in four aspiring homeowners say they can't save enough money for a deposit - and the rising costs of living are making it tougher.
The finding comes in research by comparison website finder.com.au.
Mortgage broking expert John Kolenda said the increasing costs of living had made it a challenge for first-time buyers to break into the market.
"The cost of living is going up and also utilities and supplies and most other costs, they are going up quite substantially," he said.
"It's difficult to save a deposit and to pay all their expenses."
Mr Kolenda, managing director of 1300 Home Loan, said for those who already rented a property it was tough also put aside money for a house deposit.
"They are virtually incurring some of those expenses that would ordinarily go to pay off a mortgage," he said.
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"On top of that how to you get to allocate enough to save a deposit at the same time."
Publisher of comparison website finder.com.au Fred Schebesta said the average deposit required for a deposit - often a minimum of 10 per cent - was difficult for many to save.
"Rent's up, petrol's up, energy is up, car insurance is up," he said.
"With a lot of loans you will also get hit with lender's mortgage insurance (if you don't have a minimum 20 per cent deposit."
The research also found about 70 per cent of respondents thought kids should move out of the family home by 25.
Australian Bureau of Statistics figures found over the past few decades more adults were living at home with their parents - 19 per cent of adults aged 20-34 lived with mum and dad in 1986 compared to 23 per cent in 2006.
Mr Kolenda said while it was a "buyer's market" those living with their parents had a better chance of pocketing a deposit.
"That assistance while staying at home and living with their parents is a better way to save and deposit and once they have got it they are in a much better position to buy property," he said.
"The market hasn't been as good as what it is now (for first-home buyers) for a couple of years."
Experts also remained split on the Reserve Bank of Australia cutting rates next month the surprise decision last month that kept rates on hold at 3.25 per cent.
