Housing affordability is changing Aussie culture
For many of us, the Great Australian Dream of owning your home is the reason we get up in the morning, or so we thought.
A recent survey by ServiceSeeking has found that homeownership is no longer a priority for 1 in 3 Aussies, while 1 in 4 believed that they would never be able to own a home.
“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 during an interview with Domain.
Levitt also explained that the drop in enthusiasm “could be due to unaffordability of housing in key east coast capital cities”.
According to Domain Group Data, the median house price in Sydney currently sits at $1.17 million, with Melbourne’s shortly behind at $865,712, which Thalia Group Chief Executive, Marion Mays said is 7 to 8 times the annual Aussie income.
“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,” Levitt continued.
While housing affordability is an issue in capital cities, according to a recent study by Westpac, rentvesting is on the rise, as young Aussies are getting smarter about how to get their foot into the property market.
Rentvesting is a term used to describe purchasing a home in a cheaper area, while renting in an area you’d like to live in.
With most banks now requiring a deposit of at least 10% of the purchase price, saving for a deposit can be tough, but there are simple things you can do daily to save more and spend less like:
- Taking your lunch to work three times a week: save $1440 a year
- Ditch the gym for the great outdoors: save $780 a year
- Take advantage of coupons and other special offers at stores you shop at regularly
Getting closer to owning your first home? Check out our Home Loan comparison table today to find out what you could be paying.