Sep 04
Is the Great Australian Dream Falling From Our Grasp?
Posted by Peter Marmara-Stewart at Monday, September 04, 2017
Recent research has shown many young families are now either renting or living with their parents, with, according to The Australian, “soaring house prices robbing couples under the age of 40 the Australian dream…”.
What people think about the Great Australian Dream…
A June survey from Mortgage Choice found almost two- thirds of Australians consider home ownership to be something for the wealthy. However, an earlier survey by the same company indicated 86% of respondents still want to own real estate – most likely an apartment.
The median house price is now about seven to eight times the annual salary – triple what it was for Gen Y’s grandparents. This has seen a shift towards investing in real estate – as opposed to buying a home to live in – and renting. This strategy, called rentvesting, has been marketed as a way for first-home buyers to get a foot on the ladder.
First Home Buyers Australia co-founder, Taj Singh, said young Australians who were still keen to own a home, were having to compromise, by buying a smaller property, or something further away from the city, and delaying “big ticket items” such as cars or holidays.
What people think about the Great Australian Dream…
Source: ServiceSeeking.com.au survey of 3200 businesses and customers.
“This contradicts the ‘Great Australian Dream’ of property ownership and shows how rising house prices are changing Australian culture,” ServiceSeeking chief executive Jeremy Levitt said. “Housing prices and living costs are higher than ever, making it more difficult for younger generations to buy a home. The whole perception of home ownership and its importance in our lives has changed.”A June survey from Mortgage Choice found almost two- thirds of Australians consider home ownership to be something for the wealthy. However, an earlier survey by the same company indicated 86% of respondents still want to own real estate – most likely an apartment.
The median house price is now about seven to eight times the annual salary – triple what it was for Gen Y’s grandparents. This has seen a shift towards investing in real estate – as opposed to buying a home to live in – and renting. This strategy, called rentvesting, has been marketed as a way for first-home buyers to get a foot on the ladder.
First Home Buyers Australia co-founder, Taj Singh, said young Australians who were still keen to own a home, were having to compromise, by buying a smaller property, or something further away from the city, and delaying “big ticket items” such as cars or holidays.