New generation of homeowners buying thanks to the bank of mum and dad

It's the best investment you could have made – buying a property in Sydney with price growth of more than 400 per cent in the past 30 years.

The enormous growth in equity, coupled with the lowest interest rates the country has ever seen, is enabling a whole new generation to achieve the great Australian dream of home ownership thanks to the bank of mum and dad.

A new report by CoreLogic and mortgage broker Aussie, exclusive to 9News, shows the median dwelling price in Sydney in 1990 was $180,000. By 2020, it was more than $870,000.

READ MORE: Extreme offers pricing first home buyers out of the property market

The median house price is much higher than that with predictions today of house price rises of 17 per cent next year following a 19 per cent surge this year.

The median house price is much higher than that with predictions today of house price rises of 17 per cent next year following a 19 per cent surge this year.

That growth in equity is allowing home owners to purchase investments and help their children get into the market.

If not for help from their parents, many would be priced out of Sydney as values soar.

Aussie chief executive James Symond said first home buyers were taking advantage of the equity in their parents' homes but also low interest rates and state and federal government grants.

"The bank of mum and dad is another key way in which consumers can get into the marketplace, using some of the equity in the mum and dad place to ensure they have a decent deposit," Mr Symond said.

They were also using that equity to serve as guarantors for loans.

Mr Symond said the residential property market had served Australians well over the years, with no capital gains tax to pay.

"It's blue chip. Over the 0, 20 or 30 years, there isn't a property that hasn't gone up in one way or another."

Corelogic head of research Tim Lawless said the growth in value was unsurprising. It's often said the price of property doubles every 10 years.

"For those people that did get into the housing market nice and early, they have managed to grow their equity and it has been a very strong form of wealth creation."

Over the past three decades, Point Piper in Sydney's eastern suburbs has retained top spot as the most expensive suburb by median house price, not just in Sydney but nationally.

As values have risen, so have our mortgages. Average mortgages have grown from $46,000 in 1995 to just under $207,000 in 2000 and $571,000 this year, according to Aussie.