Moira Geddes explains why you should rent where you want to live and buy where you can afford.

TONY Abbott is pointing to the real estate success of his daughter to show it’s not impossible for young people to buy a home while paying off university debt.

The Prime Minister said one of his daughters had bought in Canberra, but conceded his other two were finding it harder to get into the market.

Louise Abbott works in the Department of Foreign Affairs and Trade and appears to have benefited from a Canberra housing market wilting after widespread public service job cuts.

Bridget Abbott pays $250 a week rent to live with dad and mum Margie in Kirribilli House, the Prime Minister’s official Sydney residence.

Daughter Frances has been working in Melbourne, which has pockets of soaring home prices matching those of Sydney.

The family home still has a mortgage on it after Mr Abbott took out a second loan and in Opposition successfully lobbied for shadow ministers to be paid a premium for their extra work. He privately pleaded he was struggling with household expenses after losing the salary of a cabinet minister.

The Abbott family’s housing ambitions — similar to those of thousands of families — were drawn into the national debate on affordability after Treasurer Joe Hockey this week said the first step for first home buyers was to get a good job.

Mr Hockey also denied Sydney had an affordability problem because people kept buying real estate.

The housing market was daunting for young people, Mr Abbott told 2GB today.

“It’s not impossible because remarkably a lot of people do it (but) it’s not easy, no doubt about that,” said the Prime Minister.

He repeated Treasurer Hockey’s prescription of increased supply to counter unsatisfied demand which is pushing up prices, and cutting red and green (environmental) tape which he said was “literally killing people” trying to enter the market.

The Prime Minister stood firm on rejecting changes to negative gearing, saying “mucking around” with the tax concession on rented out investment properties would lead to increased rents.

The Labor Opposition is considering proposals to limit negative gearing to investments in new homes.

Shadow Treasurer Chris Bowen said Treasury secretary John Fraser and Reserve Bank governor Glenn Stevens had been “ringing alarm bells” about the exploding housing market.

“Everybody should pay very close attention,” Mr Bowen today told ABC radio.

“The only people who seem not to be paying close attention to the governor and the secretary are the Prime Minister and the Treasurer.”