While the elimination of stamp duty for first home buyers is expected to lure young people to the property market, there lies a greater concern about the affordability of owning a first home.

Owning a home is becoming less common as the cost of living and property prices continue to rise, according to wealth advocate Marion Mays. 

For most, financial education is a generational matter – passed on by parents or grandparents. More often than not, we are lead to believe that we should work hard to buy a home for our families, as our parents did. 

According to the 2016 census data, 7739 people in the Southern Highlands owned their homes outright, 5841 people owned their home with a mortgage and 3519 rented their property. 

Compared to data collected in 2006 there has been a decrease in homeowners in the Southern Highlands. The 2006 data showed that 9477 people owned their homes outright and 10,201 people owned thier home with a mortgage. 

According to Ms Mays, who is the CEO of Thalia Stanley Group, the median house price has grown to about seven or eight times the annual salary. 

In the Southern Highlands, the median mortgage repayment was $1600 in 2006, which has grown to $1842 in 2016, indicating a growth in property prices.

This is in comparison with the average weekly household income of $1064 in 2006 and $1334 in 2016. 

“How this plays out is that we are seeing a 50 per cent decline in first home buyers in the under 30 age bracket, and a dramatic increase from buyers in their 40s and 50s,” Ms Mays said. 

While this may seem daunting for first home buyers, Ms Mays said there was a solution. 

“[First home buyers] should consider using property investments as part of their financial planning scheme, as opposed to just fulfilling their homeowner dream,” she said. 

The concept is called ‘rentvesting’. 

Rentvesting allows first home buyers to get into the property market by buying a place within their budget and leasing it to tenants while renting in their preferred location.

Ms Mays said this had proved to be a popular way for young hopefuls to enter into the property sector quickly.

“What people often fail to see is the restrictions they are placing on themselves when they buy their own home - focusing on the up-front gratification of the great Australian dream instead of looking at the long-term picture.”

While rentvesting may look attractive, Ms Mays said it was not a one-size fits all option. 

“A common mistake that many people are making is relying only on their financial planner, bank, or even their accountant to help them make these big decisions – you need a team of experts who work with you towards your long-term goals,” she said.