For generations, Aussies have dreamed of retiring in their own, fully-owned home. But is that even possible any more?
Many things have changed since the Baby Boomers were setting out in the world. They were taught that if they studied hard, worked hard, bought a good home and paid it off, they’d be set.
Now, it doesn’t seem so simple.
Today’s Gen Y’s are facing a prediction that just one in 40 of them will retire mortgage-free. Gen Y incomes are typically low, and forecast to stay this way. Priorities have changed; people under the age of 30 are more intent on travel and entertainment, avoiding the commitment of a mortgage and nine-to-five job.
The percentage of renters aged 18-29 has boomed 25% in 15 years. Many Gen Y’s aren’t buying their first home until they’re in their 30’s. Affordable housing in convenient locations is expensive and hard to come by, and demands a level of ‘settledness’ that many aren’t willing to commit to yet.
Has the ‘Great Australian Dream’ become unrealistic?
Just getting your foot in the door of your first house can seem impossible, but getting started in the property world has always been a challenge. Remarkably, recent studies suggest that home buying is actually as affordable now as it was years ago.
Part of the problem is that financial education is not prioritised in our system and most people don’t have a good finance role model. Nonetheless, there are more resources now than ever to educate and inspire the current generation to build wealth.
Gen Y is in the perfect position for property investment.
Time is space for wealth to grow and interest to compound, and Gen Y has plenty of it. What’s more, with housing actually no less affordable than it has been and banks competing to offer you the best deals, this is an exciting time to be investing in property.
Another thing to consider is that buying property doesn’t necessarily mean buying your dream home, or even your first home. There are many investment strategies, and sometimes buying an investment property first can be the perfect fit for your goals.
Are you ready to turn time into money and prepare your Great Australian Dream? Talk to our finance experts and find your perfect fit today.