Over many generations the Great Australian dream has always been home ownership. This status was believed to lead to a better life and an expression of success and security.
However is this still the “Great Australian Dream”?
It seems some first home buyers may be deterred due to housing affordability issues and undersupply of good stock but does this dream still exist?
The 2014 Housing Affordability Sentiment Index (HASI) recorded that property ownership remains the leading aspiration of many:
32% of property owners aspiring to buy another property
50% of those who didn’t own a property hoping to buy
23% of those who didn’t own an investment property, hoping to buy
HASI also recorded that 77% of home owners who were hoping to buy another property and 68% of non-property owners hoping to buy wanted to travel overseas in the next 5 years.
This latest research highlights that the Great Australian Dream is broadening to include a primary residence, investment property, a holiday home and travel.
Gen Y on average are more positive than other Australians. They report a positive shift overall in regards to their financial position and household savings, income and expenses.
53% of Gen Y surveyed were already property owners and 23% owning investment properties. This generation is also getting into the property market early with 50% buying their first property between 25-29 years.
Nationally, respondents believed they had seen an improvement in their financial position, more than half the respondents believed housing was less affordable.
To overcome the challenges of housing affordability, aspiring property owners are adopting a range of different strategies to achieve their goals:
Working 2 jobs (13%)
Drawing from other financial assets (12%)
Selling valuables (6%)
Leasing a room once they had bought a property (4%)
Most Australians are willing to make a sacrifice in order to afford property.
Property ownership is still a dream to aspire to with travel included. The changing sentiment in financial position and goal setting is helping keep this dream alive
With all this in mind, it seems our dreams are getting bigger. My question is have we become a nation that wants it all?