Owning a home is still a top priority for most Australians, with a new survey revealing that many Australians are putting off major life goals in pursuit of getting onto the property ladder.
The national survey, commissioned by industry super fund-owned lender ME, found that nearly half of Australians (49%) admit that they have sacrificed important life goals to buy their first home.
Delaying or downgrading holidays is the most common sacrifice (30%), followed by delaying or downgrading a car purchase (21%).
Getting married and having children were even sometimes scarified or delayed in favour of saving for a deposit.
Fourteen percent of those surveyed said they had delayed or decided to have fewer children, 12% said they either delayed or downsized their honeymoon and 10% said they delayed or downsized their wedding.
However, there are some non-negotiables. Of those with children, only 7% decided to send their children to a less expensive school and only 6% delayed or sacrificed starting their own business due to their mortgage.
The research also revealed that Gen Y were sacrificing the most for the Australian dream of owning their own home. Over two thirds of Millennials (69%) had put off life goals in order to commit to a mortgage, significantly more than Gen X (46%) or Baby Boomers (41%).
ME head of home loans, Patrick Nolan, said the research indicates Millennial first home buyers are doing it tougher than previous generations.
“Everyone who buys a house makes sacrifices in order to meet that commitment, but it’s getting more difficult − not surprising when house prices have more than doubled since 2000, out-stripping rises in real incomes.
“Fortunately there are a number of smart strategies first home owners can deploy to make it easier, like buying with friends or family, buying in alternative locations, or starting out with an investment property.”
Jason Thomson | Mortgage Adviser and Finance Broker | Smartline Cairns