After a happy healthy family and the financial freedom to do what they want in life, Australians dream most about owning a house.
Owning a property has long been a cornerstone of the Great Australian Dream however with the growth in house prices, especially in metropolitan areas, the dream is evolving to encompass more options than the traditional freestanding home on a quarter-acre block.
In a bid to understand Australians’ new attitudes to the Evolving Great Australian Dream, MortgageChoice surveyed more than 1,000 Australians, investigating their thoughts and opinions on getting into the property market and exploring the paths they are prepared to take to secure a property.
As you'll see from the infographic below:
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- 77% of Australians were forced to buy a smaller property for affordability reasons;
- 89% moved into more affordable suburbs to get into the property market;
- Most Australians (90%) think if they don’t get ‘money smart’ they will get left behind, an increase of 18% on last year;
- 2 in 5 Aussies do not understand Lenders Mortgage Insurance;
- 5% of First Home Buyers bought with a guarantor;
Home Buying strategies
Here are some ideas Aussies used to get into their first home sooner:
- Progressive upgrading - Unfortunately, many of us won’t be able to afford our dream home straight off the bat. Instead 1 in 4 Australians said they purchased an affordable home in the first instance and then ‘progressively upgraded’ into bigger and better properties over the years.
- Apartments instead of houses - an increasing proportion of first home buyers are opting for an apartment rather than a house, which is a long way from the ‘traditional Great Australia Dream’ of owning a free-standing, suburban house on a quarter acre block.
- Moving further out - 20% of Australians bought further from the city than they would have liked simply because a property is more affordable in the outer suburbs. Sometimes you have to make various sacrifices in order to make those dreams a reality.
- Renvesting - as 30% first home buyers bought an investment property before an owner occupied dwelling. Rentvesting gives buyers the chance to get on the property ladder and build equity in a property, all whilst having the freedom to live in their desired area.
- Moving in with parents - Living with family is a great way to reduce day-to- day expenses and ultimately free up some of your cash flow – cash flow that can then be injected into your savings account, where it will form part of your future home deposit.