Ownership of the family home is likely to continue to be one of the best routes to securing a comfortable retirement for most people. Yet home ownership rates are falling. Not only do more people retire with mortgage debt, but today's younger people are also more likely to rent for life than earlier generations. The biggest obstacle to getting in the property market is coming up with the deposit. Illustration: Michael Mucci Credit: For those thinking of getting into the property market, now may be best time in years. That's because prices in Sydney and Melbourne are still down about 10 per cent on what they were two years ago and, following recent cuts to interest rates, mortgages are cheaper to service than ever.

However, Sydney and Melbourne home prices are now rebounding faster than expected. The interest rate cuts have fuelled a rapid rise in prices over the past three months, with prices in both cities up by about 3.5 per cent. Those still thinking of getting into the market risk prices getting away from them once again. Even though they are able to afford the mortgage repayments, often the obstacle is saving a deposit, which, for first-home buyers, is usually 20 per cent of the purchase price. Research shows that almost 40 per cent of all recent first-home buyers relied on parental or family assistance, either as a loan or a gift, to either supplement their savings towards a deposit or by family members going guarantor for the mortgage. The figures from the Genworth First Home Buyer Sentiment Report for September are based on a survey of 3000 prospective and recent first-home buyers by national researcher CoreData.

The report underlines how coming up with a deposit remains the biggest block to getting a foothold on the property ladder. During the May federal election campaign, the Morrison government announced it would establish a scheme to help first-timers into the market with as little as 5 per cent deposit. The proposed legislation has been introduced to Parliament, with an intended start date of January 1 next year. Under the scheme, the government goes guarantor on the first-home buyers' loans. However the scheme is limited in scope. It is designed to help only 10,000 first-home buyers a year and eligibility is restricted, likely limited to singles earning less than $125,000 a year and couples earning less than $200,000.