Everything eventually reaches its expiry date. This goes for trends, fads, clothing styles, phrases, popular music and just about everything else you can think of. It is the natural course of life, birth and death. The same can be said for the traditional concept of homeownership. The Australian dream experienced its birth sometime after the second world war. Riding on the back of the American Dream, it became the ideal that all Australians would aspire to. The idea was to have your own home on the quarter acre block in the suburbs, to raise a family and keep until your golden years of retirement, where you would eventually pass the home down to your children. Well the Australian Dream has now run its course and it is no longer something the kids are finding cool.
A recent survey discussed in this article on Domain.com.au has shown that one in four people of a sample of 3200 have thought that owning their own home was an impossibility while 35 per cent have stated it is not a major priority in their life.
We can safely say this is a direct result of affordability taking shape in this country where the birth of the Australian dream was at a time when housing was at its cheapest. Young people feel as though homeownership is now out their reach particularly as east coast housing prices have rapidly risen over the last five years alone while wages and rent have remained stagnant.
Sydney’s median price is now at a staggering $1.17 million while Melbourne has reached $865,712. The effects of which have been shown in direct correlation with first home buyer levels falling to record lows.
Not all Australians are giving up on homeownership however with around 86% identified in a Mortgage Choice survey stating that they would still like to own real estate at some point, with more opting for an apartment.
On the opposite end of the spectrum, investing has seen as a rapid increase as a way of purchasing property for many young people as they choose to continue renting in the capital cities while investing elsewhere. Rentvesting has become the new way for first home buyers to get into the property market without having to sacrifice their budget or lifestyle.
Could this be the next incarnation of the Australian Dream? Our love of property investment is now revealing how it affects our capital cities but us humans are good at adapting to our environments, with millennials taking a stand to invest rather than own their properties. Rather than be tied down paying off mortgages, this up and coming generation have shown they desire freedom and refuse to compromise on their lifestyles to live an outdated dream. Instead, they are making their own way into the property market and it has shown to be a very effective way of getting a hold of property without being a slave to the banks.