13 November, 2015
Research finds half of home buyers making life-goal sacrifices to purchase property
A national survey commissioned by industry super fund−owned bank ME found Australians are putting off major life goals in order to achieve the great Australian dream of buying a home.
In a survey of 2,036 Australians, ME asked if any had sacrificed life goals to buy their first home.
Nearly half of Australians (49%) revealed they’ve delayed important life goals to secure a foot on the property ladder.
Delaying or downgrading holidays is the most common sacrifice (30% of respondents), followed by delaying or downgrading a car purchase (21%).
Love, marriage and babies also get sacrificed in favour of buying and paying off a home:
But 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.
Gen Y sacrificing more
The research shows that 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 Millenial 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 alterative locations, or starting out with an investment property.
The survey was conducted in October 2015 via global business intelligence and media provider, RFi Group, using an online survey method. Survey completed by >2,000 Australian adults.
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