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A young Australian has uncovered a huge problem with house hunting in Australia – and it’s more common than you think

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

Bailey, 25, who is trying to buy a flat in Sydney, revealed the ‘bank of mum and dad’ was helping most of his competition.

«I’ve got really bad news if you’re like me and your house hunting in Sydney or the rest of Australia,» Bailey said in a video posted on social media.

“I was house hunting over the weekend and every viewing I went to had people my age and in their thirties.

“And they were talking to their parents and I kind of heard them on the side. Parents say, ‘Oh, we can do this award, we can do that award’.

«And I’m like far, like how many people get help from their parents?»

Bailey claimed that 60 percent of buyers get help from their parents, who lend 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 you’re 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 that finding an apartment was «daunting».

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

Bailey (pictured) said most of his competition was getting help from their parents

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

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«I’m over 100,000, it’s so important not to compare yourself or get discouraged when you wonder how others your age have done it,» said one woman.

«I’m single and work part-time because I’m disabled, so I’d never manage a deposit myself – never – but I know so many people who have money and don’t want to admit it.»

«My parents helped my sibling out with $150K so the other three of us have to stick with this,» wrote another.

A third shared: “I have nothing. but I think it’s important for your parents to help you achieve your goals. I will save for my daughter with the hope of helping her one day.»

Bailey was highly critical of the current state of Australia’s housing market.

“I made a video expressing my frustration with the current state of things. However, the comments highlighted that we are in a scenario where many people need parental support to even consider buying a home.’

Sydney’s median house price has risen 12.5 per cent this year to an even more unaffordable $1.397 million, CoreLogic data showed, despite the RBA’s rate hike.

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

Most young Australians entering the property market are helped by their parents (shares)

But if they could get a mortgage, they would need a 20 per cent down payment of $143,368 just to buy a $716,841 house, which would buy them a unit in Sydney or a suburban house in Melbourne.

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

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«We know that in 2010, about 12 per cent of people (who were) first home buyers were getting help from the bank of mum and dad,» she told the ABC.

«Since 2017, it’s gone up to about 60 percent, so it’s grown enormously.»

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

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