Home & Garden

Do you believe the 'Australian Dream' of home ownership is still achievable? (Reply + Win!)

Home & Garden

Posted by: TaylorCS

21st Jul 2021 02:17pm

A new report by the Australian Property Institute (API) says "professional property valuers believe property prices will continue to surge, locking more Australians out of the housing market."

Despite this, the ABS statistics show "the number of new mortgages taken out in March was 55% higher than it was in March last year."

If you've purchased or tried to purchase a home in the last year, is this data reflective of your experience?

And if you've tried to purchase a home or not this past year - do you believe home ownership is still the 'Great Australian Dream'? And is it achievable for most Australians? Why or why not?

Let us know here and you'll be in with a chance of winning one of two $50 eGift cards for your amazing response!

The winners will be the two most comprehensive answers as judged by our staff. The closing date is 5 pm AEST Friday, July 30th.

Comments 126

Josie1980
  • 30th Jul 2021 04:52pm

Yes, I do believe that the Australian dream is still achievable, however, people need to ensure that they are living within their means and going into home ownership in a sensible way. I believe that these record-low interest rates will not last and so overstretching to purchase property and going into heavy debt isn't the Australian dream; buying within ones means is the way to go, starting off maybe not in your dream home, but working towards it over time.

kidwithsmurf
  • 28th Jul 2021 07:21pm

I haven't personally tried to buy a home as I am one of those that are under 30 thinking, I'll never be able to afford a house. During Covid the housing market has gone crazy and rent prices are even rising to compensate for rental owners who have reduced work due to Covid and the shear fact there are less rentals on the market as less people are moving out of them during Covid etc.

In my opinion, buying a house before Covid was always out of reach for most young Australians who haven't been born into wealth or got lucky with their investments (Crypto, Shares etc) or even lucky with a high paying Job (Rare these days). So now with Covid, houses seem to be selling for whatever they want and are getting it. This is because of lower mortgage rates causing more people to take up mortgages during Covid and less people selling their houses. Thus, allows people to sell their house for whatever they want knowing people will take out a mortgage at a lower rate and pay for it as there is no housing competition to set the prices lower. This is a win lose situation for younger generation Australians like myself. This is because, yes, on one hand, we can get a cheap mortgage rate but we have an expensive house price on the other hand. Thus not being any better off as our jobs are uncertain and repaying the mortgage, even at a cheaper rate for a longer period is uncertain due to the unforeseeable future of job security.

Thus, with Covid, job security is a big issue. Most small businesses can't afford to pay more than the minimum wage or have as many staff and most big businesses are not giving pay rise due to the uncertainty going forward. This further makes it hard for people new to working and/or haven't been working in a position for numerous years to either find a job paying enough longterm to be able to afford a house at the extreme prices they are today or even be able to get a job for long enough at all.

Therefore, I believe, due to the low supply, high demand due to low mortgages and the low paying jobs/uncertainty of job security, owning a house isn't achievable anymore. Also, with the increased rental prices, bills piling up, people are earning less and paying through the roof just to live little own being able to afford a house.

angd
  • 27th Jul 2021 11:47pm

I think the dream is definitely still obtainable but people’s expectations of what they should get needs to be more realistic to match the uncertainty of the current pandemic and possibility of losing income. Older houses have such character and extensive potential

clem_lun
  • 26th Jul 2021 02:38pm

Yes, the property market is definitely getting out of control. I am trying to purchase another investment property but prices have gone up so much now. I am glad that I already own my own home.

michb
  • 26th Jul 2021 12:55pm

Home ownership for the young adults is out of reach for most due to exorbitant prices. House prices in mid-western Sydney are over the million dollar mark. If the young couple desire children, then I think they would have to make the difficult choice of home ownership or a family.

Marie-Clare
  • 25th Jul 2021 08:45pm

Property prices are increasing to rise in a disproportionate way to incomes, and therefore the average Australian is being priced out of the property market in capital cities of Australia.

dollymay
  • 25th Jul 2021 07:43pm

Home ownership is still the great Australian dream but I think it is becoming unreachable. There are no permanent jobs any more, they are nearly casual or part-time. The job industry
has become very unstable and you don't know if you will even have a job tomorrow.
The high interest rate with low income, alot of banks wouldn't give you a loan.

gmark
  • 25th Jul 2021 11:43am

Its always possible for people to own their own home if they are realistic on what they can afford and start off smaller and less lavage than their dream house. There are still plenty of good buys out there just maybe not in the right area or condition for what people want but sometimes its worth the sacrifice to buy something like this and work towards a better place in the future. We bought our 1st house at a good price, did some work on it ourselves, sold up to something better, did the same and have since done this a few times and always made enough money to get something bigger and in a better location. We know have the house we are so happy with and have never had to really stretch our finances. Work towards the future and you can do it

musicmum
  • 24th Jul 2021 09:48pm

I do believe for some people it is very achievable, but of course you need a good stable and well paid employment possibly as a public servant, in medical field or as a politician or a CEO of a company. For many of us it is not looking good. We can hardly afford rent which keeps increasing never mind saving up for a deposit. My personal experience is I am now a 60 year old student on Austudy after years as a single parent and my income is extremely low, as well as my son who is on youth allowance while he studies his income does not even contribute to rent, just covers his food, electricity and internet costs to study. Any savings I have is getting slowly depleted to make up for the rise in cost of living. I try to sell off things I don't need, do surveys and online research as well but limited to getting gift cards so they have to be spent on supermarket purchase and cannot be saved as cash for future use.
I am scared because my lease is ending in November due to the house being sold after years of living here and this will be a holiday home for the new owners. Rents have risen dramatically and there is very little in the lower rent bracket, who can afford $400 and upwards? I live in an area where we have a housing boom, new estates being built, double and some even three story houses, so clearly someone has got money and it's not me! (Meanwhile the kangaroos have less land to graze on)
I feel my only hope for home ownership is a tiny house and find a plot to rent to put it even when I get my inheritance in the (far off I hope) future once it is shared won't be enough to purchase a house or land, but will be enough for a deposit on a house (if I end up employed) or build a tiny house.
The scary thing is while interest rates are low now, what happens when they all go back up, will we see people having to sell off their homes due to long term unemployment if we cannot get this country back to what it was 18 months ago? The only people doing well as far as I can see are big corporations and the elites of the world (think Bezo and Branson), while small business have been devastated. We are living in a more unequal and unfair world while we all strive to keep a roof over our head the environment is being destroyed and we are facing climate changes. We should all strive for more sustainable housing, shared plots with tiny houses, and other alternative housing, we all cannot have a mansion!

Timbo
  • 24th Jul 2021 09:16pm

When we purchased our first home about 49 years ago we paid something like 7 times my gross annual salary. It was a modest 3 bedroom single storey home in an average-income suburb. To purchase that same home today I would need to be earning over $200,000 a year. I wonder why we allow foreign ownership of our property? Many countries only allow citizens to own property and foreigners may only lease it.

Frogsy
  • 24th Jul 2021 07:08pm

If you weigh up an average mortgage compared to renting for the rest of your life, rent has nearly caught up to mortgage payments per month for the average home loan of $750,000 @ 2.5% loan would cost approx. $2,700 p/m versus average rent at $450 p/w – will cost $1,800 p/m. My simple answer is ‘yes’ purchasing a home to reside at is the best option. There are many variables in life, but in terms of stability and long term needs then home ownership would be the logical answer. Wants and needs might be different for some who do not want to be tied up with a mortgage, prefer to be free as birds, couch surf and fleet from one lover to the next or travel around like there’s no tomorrow. Then there’s someone like me who craves security and stability.
To be honest I would be scared to rent as it may lead to vulnerability or worse still homelessness. If you start to plan early, have one of those things called jobs, then the Great Australian dream is still a possibility for many young Aussies. It would ensure self-sufficiency and enable you to start planning for other so called impossible dreams to come true. I think that being less reliant on material possessions and having a broader outlook would enable many to focus on home security. In conclusion on achieving this, the why's would be that it easy to plan early, simple to use essential banking tools to save, simple enough not to indulge in instant gratification and look towards the big picture. The why not’s would be freedom from a mortgage, you have found a sugar daddy or mommy, too hard to save because of low income and house prices continue to rise. The way I see it, inflation has gone up at the same rate as yesteryear, for instance $50 back in 1950 is now worth $1,430, buying a house or not could possibly be just a perception issue.

musicmum
  • 24th Jul 2021 09:50pm
If you weigh up an average mortgage compared to renting for the rest of your life, rent has nearly caught up to mortgage payments per month for the average home loan of $750,000 @ 2.5% loan would...

Where I live there are quite a few houses for rent for $450 and above but not houses to buy. I cannot afford either. I will be desperate when my lease ends in November and the house I rented for years will be a holiday house once again.

jtmorri
  • 24th Jul 2021 06:36pm

Housing demand of ownership has increased because rent has increased during the pandemic. This coupled with historically low interest rates and government incentives has fuelled the new home and established home markets and increased prices for ownership

I haven't bought a home in the past year, and I wouldn't purchase in the current market because the price you pay isn't good value for the actual property and not indicative of a property's true value. So you end up over capitalising and possibly selling below what you paid initially. The incentives by the government are partly to blame for the rush on home ownership and when you take into account the increase in prices, no advantage has been gained with the offering of the incentive. In the now home market of building a home, the situation is further compounded by timeframe blow outs and lack of materials and labour, which then puts the price of construction up and takes double the time to build the homes.

Having said that, I think starting off with a lower value property is a good strategy. If it is what you can afford and in your budget then it's the way to go. Some people have to get out of the mindset that they can have it all and have it right now. Therefore it comes down to what people can genuinely afford and their own expectations that dictates getting a foot into the Australian housing market and living the Australian Dream, as you can always buy a more expensive property later when your income and financial situation improves. So slow and steady in everything wins the race.

jtmorri
  • 24th Jul 2021 11:42pm
You wonder what will happen when interest rates on loans rise and people will once again not be able to afford the mortgage.

I think that is why it is important to live within your means and take the advice of lenders of how much you can comfortably afford with interest rate rises placed in the equation. Buying a home is a long-term commitment so you need to think about that when setting up your loan and choosing either a fixed or variable interest rate and then re-evaluating when market conditions change and possibly refinance to a more suitable interest agreement whether that be fixed or variable at that time.

musicmum
  • 24th Jul 2021 09:52pm
Housing demand of ownership has increased because rent has increased during the pandemic. This coupled with historically low interest rates and government incentives has fuelled the new home and...

You wonder what will happen when interest rates on loans rise and people will once again not be able to afford the mortgage.

hispania
  • 24th Jul 2021 05:08pm

I haven't tried to buy a house in the past year but I have seen family members go through this. The rapidly increasing prices, the rebates offered by the government in an effort to support the building industry, and the demand from people overseas and in other states has altered the way we approach buying a house. It seems to me that there is a panic approach to buying a house before the price goes up, before the subsidy period expires or before someone else gets in first. There isn't the time where you can think over the purchase and whether it is really what you are looking for or the location you want. It's a matter of looking at the house one day and making your mind up that night and phoning the agent straightaway. It is terrible to be rushed into a decision like that. I wonder whether the house values will hold up in a few years time because some of the prices paid are extraordinary. I feel for young people trying to buy their first house. I also wonder what will happen when interest rates eventually increase. So many people have had to borrow large sums of money to be able to take part in the housing market and can manage right now with the size of the loan (just!) but may find it much harder when interest rates do go up.

musicmum
  • 24th Jul 2021 09:54pm
I haven't tried to buy a house in the past year but I have seen family members go through this. The rapidly increasing prices, the rebates offered by the government in an effort to support the...

Where I live house prices are skyrocketed, and demands is huge, houses can sell within days or weeks and we have new estates building two and even three storey houses.

pebbles
  • 24th Jul 2021 01:50pm

If you keep your expectations at a level. You can afford and make sacrifices. I think home ownership. Is possible.
All three. Of my children. Have and they. All went basic. And all have. Avoided the buy on credit. Trap.
They all. Know. How to. Live with in their means. I actually think. Wanting it all now. Is. The easiest way to see yourself. In double. When interest rates go up our kids learnt. What it was to fly by the seat of your pants when we. Had interest of 18% on our mortgage. At one stage. And we. Just got buy. We set ourselves goals. Like. One new. Item. Each year. Till we had. All we needed. I also. Think if. City prices are out of reach. Look at. Saving. Live on one wage. To save. A deposit.
And then think about. Where you would like to retire.
And purchase there. And rent out the property. ,get the benefits of. Tax breaks. There are plenty of ways. You can. Purchase a home you just. Need to. Be able to pay. The mortgage. At a higher rate. Of interest. Than you get your loan at. And keep paying it. Say. You borrow at 2%. Work out what the repayment is at. Say 6%. Because it will get there. At some stage. Or more. So when get the loan pay repayments at. 6 %rate. You will get ahead. And pay off the home faster. They key to. Home ownership Is to. Know what you can afford ,another thing is while you rent take the opportunity to use it as a chance to. Purchase. The things you will need. When you buy a home. ,Fridge furniture. Ets.
Also. You will need to. Know if you can afford. Council rates. And water. And insurance. Then money for maintenance. And then before you purchase. A structural report. If the house is not new.
We bought our home many yrs ago. And did it on one wage with 3 children. My husband. Supported me. As I am deaf and no one wanted to employ me.
And I still do not work. And we live on my husband's age pension. As I am still not age pension age. It's. Tight. But. We manage. Just I think Covid. 19 has made. Things harder for. Many. And I do think. It will be around for quite a few more years. Till. We get a yearly. Jab for it. I also think. Greed is driving. Up the prices. Too. Especially real-estate. Agents. And builders. Shortage of labour and then the grants. From the government. Driving up the prices. ,The lack of vision or governments. , Urban infill. The cost of land. Is insane. And as it becomes scarce the price will keep climbing. I think there needs to be a rethink. On how. We all live. Especially the suburbs. We live in. I could go on ad infinitum. The dream of home ownership is still alive. It's just. Not. For everyone.

raejoanne
  • 24th Jul 2021 06:57am

In this day and age, with COVID-19 and the cost of living, I don't believe there is such a thing as the 'Australian Dream' any more. It costs too much to have a deposit and with all those that are not able to work, don't have the ability to save (unemployed) and interest rates being what they are, it would be too difficult to ever have the dream one wishes for.
It's not bad to have the dream, but unless you win lotto or are well off and know you won't lose your job renting is sometimes the only option. Yes the cost of rent is high, but banks don't take that into account when you apply for a loan for a house/apartment.
Morrison should do the right thing and help EVERYONE out, not just those that can afford it.

drums69
  • 24th Jul 2021 01:16am

THE GREAT AUSTRALIAN DISGRACE! This Morrison Government is the worst Gov in Australian History! They have thrown in the kitchen sink to keep their own property portfolios from crashing! During the biggest pandemic in world history to have a housing bubble is a total disgrace! To lure in first time homebuyers with Gov grants and low interest rates into a massive debt trap is a crime. There is no gain when the house prices are 40% over their true value. And who is to pay for the Trillion dollar debt from all these handouts! Yes you and I and our kids and theirs for generations to come! All to feed our corrupt governments fat pockets! I feel sickened!

musicmum
  • 24th Jul 2021 09:57pm
THE GREAT AUSTRALIAN DISGRACE! This Morrison Government is the worst Gov in Australian History! They have thrown in the kitchen sink to keep their own property portfolios from crashing! During the...

So true.

Trina32082520
  • 24th Jul 2021 12:56am

Well it's is I guess.

Angieg
  • 23rd Jul 2021 09:57pm

I'm renting and there is absolutely no way that I can afford to save at least $50,000 to cover the deposit, stamp duty and other fees involved - cost of living is increasing and rent increases just compounds the issue. The Great Australian dream may still be available to some, if they rely on the Bank Of Mum & Dad or have a financial windfall but for the majority, it is just not attainable anymore. It actually annoys me to no end when I hear of people whom belittle younger generations for not being able to purchase property, blaming them for too many avo on toasts, going out all the time, wanting everything new, etc. - times were different years ago, when house prices equated to 3 years of full time employment (now it is approx 13 years), inflation rates were low and people actually held permanent full time work. Maybe it is time to place less focus on home ownership altogether like many European countries, to lower expectations and stress ... just a thought.

musicmum
  • 24th Jul 2021 09:59pm
I'm renting and there is absolutely no way that I can afford to save at least $50,000 to cover the deposit, stamp duty and other fees involved - cost of living is increasing and rent increases just...

Yes in some European countries you can get extremely long leases, I have been renting my current house for years but only got 12 months at a time because real estates get more money each time they get a new lease signed! Now I have to look for another place to rent in November, most available are unaffordable or dumps.

2020
  • 23rd Jul 2021 09:21pm

Sadly more and more people wont get to own a house of any sort and if they are lucky enough they will face crippling repayments when interst rates start to rise in the not so distant future. The cost of buying a home is stupid fuelled by greed from owners and real estate agents.

2020
  • 25th Jul 2021 07:39pm
That's what I think, things will crash when interest rates go up and there will be an abundance of houses up for sale and the only ones who can afford it will be the already rich.

Yes very true. Next door to me put the house up for sale at 395K which is high for the small house which is over 30 years old and nes some doing up There were 3 offers and the carhighest offer was 484K which is outragous as i been great friends with the people and i know whats wrong with it. Someone bought because they were desperate for a house???? You can buy better houses in the area for less or home package with everything in the same area fences shed etc. Next door doesnt even have a carport or a space to park a car. So i say slick selling by the agent to someone who probably cant afford the re-paments later or its an investment for a landlord but its silly and how slick agents can con people into buying properties they really cant afford.

musicmum
  • 24th Jul 2021 10:01pm
Sadly more and more people wont get to own a house of any sort and if they are lucky enough they will face crippling repayments when interst rates start to rise in the not so distant future. The...

That's what I think, things will crash when interest rates go up and there will be an abundance of houses up for sale and the only ones who can afford it will be the already rich.

Mammabear
  • 23rd Jul 2021 08:46pm

Sadly, our children are out of the race to home ownership. They are living it up, spending on themselves rather than saving and putting themselves out of contention for sizeable deposits let alone qualifying for a home loan. As pensioners we are unable to help and it’s very sad and frustrating.

Mammabear
  • 24th Jul 2021 10:38pm
You need to buy them the book Barefoot Investor.

My son wants me to read it! Lol

musicmum
  • 24th Jul 2021 10:02pm
Sadly, our children are out of the race to home ownership. They are living it up, spending on themselves rather than saving and putting themselves out of contention for sizeable deposits let alone...

You need to buy them the book Barefoot Investor.

Jess
  • 23rd Jul 2021 08:11pm

We were lucky enough to have been able to purchase a house at the beginning of 2019 and it was hard enough for us then. I can’t imagine how difficult it is now and will be for many years to come. Quite a few friends of ours are renting and have looked into purchasing but it’s just not possible for them at the moment.

HWY84
  • 23rd Jul 2021 07:00pm

In 1978 I purchased my first home unit in Penshurst (Sydney) for $22,000, it seems quite a cheap price but wages were extremely low. In 1972 as a first year apprentice Toolmaker I earned $17.00 a week. During these years the Banks were very strict, an interview with the Manager was required. When they assessed you for a loan they only took the man's wage into account, they only allowed one third of your monthly wage to calculate how much you could borrow and you needed a deposit of 25%.

The prices of properties were relative to wages and I believe this continued from the 1970's, well into the 2000's. I think the rapid increase in population, particularly in Sydney and the record low Interest Rates has increased the demand resulting in more competition and inflated prices. We currently reside at Umina Beach, situated at the southern end of the NSW Central Coast and recently purchased a new home. Apart from the incredible price we paid, we were also stung with the $69,000 Stamp Duty. Since the Covid pandemic started I have seen ridiculous house prices. Just recently I heard of a knockdown in Umina Beach which was purchased in July, 2020 for $550,000. No renovations were performed on the house and in March this year it sold at Auction for $1,100,000. In a period of 9 months it doubled in price.

I'm now 65 and I truly feel for the younger people who wish to have the Australian Dream of a house on a quarter acre block. In 1988, we had Interest Rates of 18.5%. We only survived by budgeting and living a frugal life. The prices have become insane and my greatest fear is when Interest Rates rise and they will, it is going to cause so many grief due to the large loans that they have taken out. I have bought and sold 5 homes, each time going up the price ladder when I could afford it. It is only through saving money, not expecting the best house in the street and lucky decisions that we have afforded to reach our dream.

fovean
  • 23rd Jul 2021 05:40pm

When it comes to housing in Australia I really don't like terms like 'affordable' or 'achievable' anymore, as over the past two decades they have been perverted far beyond their original meaning in service of keeping prices higher and ever-growing. It can be (and always is) argued that home ownership is achievable so long as there are people out there buying houses. People will keep making this argument no matter how high prices get relative to incomes - "I bought a house therefore it is achievable"

"Affordable" is an even worse term. Every housing affordability policy actually implemented in my adult lifetime has been targeted not at reducing property prices, but instead at increasing credit accessibility via grants and LMI guarantees that only serve to increase prices by many multiples of the stimulus amount due to leverage. We're also finally seeing what happens when people take the oft-offered advice to housing woes "Move to the regions, where housing is affordable". Double digit growth during a recession, vacancy rates approaching zero, homeless numbers exploding. It turns out that when two-thirds of your population is in the capitals cities, regional areas can't absorb much of a population influx before any notions of apparent affordability evaporate.

So is home ownership achievable? Well yes, if you have a better than average income, live a below average lifestyle to save a deposit when the banks won't even match the reported inflation rate and move to an area far away from your job you too could be the proud owner of an astounding amount of debt. But if that sounds like the 'Great Australian Dream' I'd hate to see it's nightmare.

Elizabeth 31231703
  • 23rd Jul 2021 05:36pm

Too expensive

Maggie
  • 23rd Jul 2021 04:18pm

There are all kinds of reasons why home ownership is still the "Great Australian Dream". In my case, I saved up to purchase my own home simply because I got tired of living in poorly maintained and expensive rentals. The problem with 'getting in to the market' has always been, and continues to be, saving up the deposit. Saving the deposit requires keeping the end goal in sight. Personally I think it is best to set up an account just for the deposit and NEVER take any money out. Then it is important to put some money into that house account every pay day. I think the 'trick' is not being too ambitious to start with
and chose an amount that is easy to manage. Once you get into the savings habit, you might decide to put a larger sum into the account each pay day. You can also put any extra money you earn, for example, over time or part time work into the account. It is also important to set your priorities. For example, if you are saving for a house and you want to have a holiday, or buy a new car, the money for those items should NOT come from your house fund. The thing about real estate is that the prices always are going up. That has to be factored into your saving plan. The other thing to remember is that there will be set backs and it might take longer than you had hoped to get the deposit saved. Another thing is to keep up with the trends and movements in real estate so that when you have your deposit saved you can then have a pretty good idea of what you want to buy.

Iona
  • 23rd Jul 2021 04:14pm

I honestly have no idea how most people get into the housing market now. Surely only those in high paying positions can afford to, and even so must use a huge chunk of their take home pay for the repayments. Certainly a lot of people are left with almost no chance. When you look at the cost of renting in many of our cities, it's a wonder a large chunk of the low middle income earners can afford a home at all!

sweetanne
  • 23rd Jul 2021 02:55pm

I believe home ownership in this current market is still achievable for some depending on lifestyle choices and savings. Sydney prices is definitely unaffordable but moving a bit further the city help us achieved our goal in December 2019 we bought our first home in the beautiful coast of NSW. It took us 3 years to save for a deposit with 2 kids added on to that expense but we did it. Hard work and determination made it possible but we're both working and earning.
What we're paying on our mortgage is lower than current renting prices So "Yes" it's still a great Australian dream.

gramonaghan
  • 23rd Jul 2021 02:48pm

I am 73 married, and live in my own home with my wife. We were very fortunate to be able to buy our home many years ago, and have moved 3 times since our first home, but we would not be able to do it now.
We started our married life in Melbourne, but in 1988 we moved into the country where the lifestyle is much better, and healthier.
I am really sorry about how the young ones starting out married life (of Living together ) now, and wish to make a life for themselves with a home that they own.
It is beyond description where does one start. as renting and trying to buy a home is extremely hard for anyone starting off.
I can only wish them good luck, and say work together, and you will eventually get there.

Sim1here
  • 23rd Jul 2021 02:31pm

The majority of millennials are certainly struggling to break into the Sydney/Australian market. Many of my peers have not been as lucky as I have been. But is it really lucky if you have been saving since your very first paycheck and had a loved one pass away giving you a lending hand. In hindsight maybe I should have lived a little, as life is all too short and we are certainly not immortal.

Andrew 31639627
  • 23rd Jul 2021 02:26pm

I am in my mid 50s. I bought my first home in 2009, having moved around the world constantly since leaving school. Things were booming at the time and we were unfortunate to get on the property ladder almost at the height of the boom. Then in 2015 I lost my job and had made a lot of financial errors in judgement. I was unable to get a job at the income level I had prior to 2015 and therefore ended up having to let the house go. This was at the height of the trough in the market. So basically the $690000 house we bought sold for $500000. For me I am too old to go through this pain again, and if we manage our money now we can live comfortably renting and not have the noose around our necks.

So for me I think the dream of owning your own home has to be carefully thought out. Getting on the property ladder is difficult, and you never know what is around the corner. I think the dream is a good one to have, but you need to do it long before I did.

If I had my time again I would do it this way. Get a modest property that is no more than 20% of your income, even if it is out in the boondocks. Have at least 25-40% saved as a deposit before even looking at buying. If buying as a couple ensure you both have a good stable job, which is really hard in these times. Make sure you pay as much as you can off of your mortgage in the first five years.

If you can achieve these things then you can make it in the market. I don't believe the valuers hype, I think they are just trying to get a lacklustre market back up and running. Especially considering they make a bucket load when things are running hot.

If the negative gearing changes in the not too distant future the market will plummet again because the tax evasion capacity will be removed and investors will look to other avenues to invest in. So hang tough it will happen and don't stress if you don't own a house before you turn 40. Just stick to your budget and keep chipping away. Wait for the low times, they do come, and properties that are over priced now will be at bargain prices then.

Bigbear
  • 23rd Jul 2021 02:12pm

Australian property prices have experienced strong growth over the past 20 years or so, unfortunately the higher prices are making the dream of home ownership less likely for many Australians but I still like to think that the dream of home ownership in Australia is alive and well and would encourage anyone looking to purchase their first property to do their research and build a big enough deposit so you are not putting pressure on yourself when making loan repayments. Also consider the real possibility of rising interest rates and the impact that may have on your loan repayments.

Stephanie32103037
  • 23rd Jul 2021 01:32pm

I was lucky enough to be a first home buyer in January. It was a very hard market to get into and everything was going for 60-100k over reserve or the price of the home. I have always wanted to buy and felt very lucky in doing so however in the last month I have felt more of an urge to leave Sydney and I have been hearing that others have been the same. I think that a lot of people still consider owning a home “the great Australian dream” however it is getting less and less doable with the prices sky rocketing and our wages staying the same/the impact our wages have has in the current crisis. I have found while attending all the inspections/auctions that 80% of the time investors and developers were buying the homes on the market before first home buyers got a chance to get in the market.

musicmum
  • 24th Jul 2021 10:08pm
I was lucky enough to be a first home buyer in January. It was a very hard market to get into and everything was going for 60-100k over reserve or the price of the home. I have always wanted to buy...

This is a real problem when investors and property developers out bid first home buyers, very hard indeed, I feel something has to be done about it, I don't know what but seems unfair.

Gerry
  • 23rd Jul 2021 01:17pm

Not for people who spend 10.00 a day on coffee = 2000.00+ a year. Gamble 50 to 500 dollars a week. Smoking 30.00 a day or 200.00 a week. Alcohol purchases 20 to 50 dollars a week or more. No hope for these people to ever buy a house. I saved and had full time job and 2 part time jobs and owned my home at 50 y/o.

Kiki Chiki
  • 23rd Jul 2021 04:17pm
Yes some but many being at home most days get bored so do these. My uncle had a 4 million home and lost everything due to gambling and finished up in a 1 bedroom public housing flat bankrupt. Then...

that's sad. yes a fair few people fall victim to addictions which I imagine are very difficult to overcome. Sorry for your loss.

Gerry
  • 23rd Jul 2021 03:39pm
just like any vices though... but plenty of people either cut these habits or avoid them to start with.

Yes some but many being at home most days get bored so do these. My uncle had a 4 million home and lost everything due to gambling and finished up in a 1 bedroom public housing flat bankrupt. Then died of lung cancer like his wife who died at age 55.

Kiki Chiki
  • 23rd Jul 2021 03:01pm
Not for people who spend 10.00 a day on coffee = 2000.00+ a year. Gamble 50 to 500 dollars a week. Smoking 30.00 a day or 200.00 a week. Alcohol purchases 20 to 50 dollars a week or more. No hope...

just like any vices though... but plenty of people either cut these habits or avoid them to start with.

redgums
  • 23rd Jul 2021 01:10pm

To keep the dream alive is best to move to a regional town and in regional cities you can purchase a home without a huge mortgage so your interest payment are far less you will be a better position than purchase in the coast cities

musicmum
  • 24th Jul 2021 10:11pm
To keep the dream alive is best to move to a regional town and in regional cities you can purchase a home without a huge mortgage so your interest payment are far less you will be a better...

NO stay in the city! LOL, I live in a regional area and I am seeing house prices skyrocket because of this, and new estates with two and three storey houses going up fast. Rents are hard to find below $400 per week too. We are seeing city prices for the first time ever!

cas
  • 23rd Jul 2021 12:26pm

It is becoming harder and harder for young people to afford a house especially in the inner city areas. We have been in our current home for 30 years and am now enjoying retirement. Our grandaughter has just bought her first home in the country .She is 22 and working three jobs to afford a house in the country .I think it is still the Great Australian Dream to own your own home it is just becoming more difficult as prices are so high. The value of our unit has trebled and we live in an outer Melbourne suburb.

Lukey23
  • 23rd Jul 2021 12:18pm

I have to say no, with the allowing for foriegn investors and buyers to give them the chance to buy up the market and pay well more than what the average person is able to pay for the houses. It has become a struggle and i see that it is making a lot of people resort to paying well over their budget and being in debt longer with the banks as well as having to Rent as well. I feel that the Aus dream has shifted a bit now and more on the lines of getting the perfect job. I think people are trying to get that than owning a home. Just the hardship and trying to price match with other competitors who have more flex has become a problem ever since the ex PM's sold our lands to overseas investors.

Kiki Chiki
  • 23rd Jul 2021 03:02pm
I have to say no, with the allowing for foriegn investors and buyers to give them the chance to buy up the market and pay well more than what the average person is able to pay for the houses. It...

totally agree - too many foreign investors in the market making it harder for those living here to invest in their own home.

Bill Collins
  • 23rd Jul 2021 12:03pm

No, with all the property investors with multiple properties, have forced an increase in prices throughout Australia. Although foreign students & most foreigners barred from entry, this still makes it hard for all 1st Home Buyer's to get into the property market.

Bill Collins
  • 23rd Jul 2021 12:02pm

No, with all the property investors with multiple properties, have forced an increase in prices throughout Australia. Although foreign students & most foreigners barred from entry, this still makes it hard for all 1st Home Buyer's to get into the property market.

mumby
  • 23rd Jul 2021 11:55am

After my husband passed away I sold up and asked my daughter and son in law if they would like to buy into the market with me. I own 2/3 and they took a mortgage on 1/3. I have my own separate area and it works really well, plus they have built in babysitter if they just want to go out somewhere. I think this sort of arrangement is a good way for kids to get into the market. With this housing boom they have already made a profit.

Bez70
  • 23rd Jul 2021 11:54am

Covid has really made me appreciate not having a mortgage and owning my own home; as the bank can't kick me out for failing to make payments, or the landlord can't increase the rents or sell the house and turf me out. But I purchased my house 15 years ago, I doubt that with the current increased prices that I would be able to afford to buy or if I could it would be the bare minimum mortgage payments not extra. In the big picture, home is where your heart is and where you feel happy and safe - it is not bricks and mortar. I would like to think it is still achievable for most Australians but it may come with an increased commute which would decrease family time.

des
  • 23rd Jul 2021 11:46am

I think buying a home is the impossible dream for the vast majority of Aussies these days. Unless you are both in the high income category to be able to service the loan. I think in the future and I believe it has already started in some cases that intergenerational families will be buying houses together to be able to afford one. Much like European culture has for a longggg time. It could solve a number of issues with affordability of the loan as well as childcare having older generation on hand to do some baby sitting duties. I think as long as the house had clear boundaries with living spaces it should work fine. We have a son who can't get home because of the lockdown who is working his ass off to save as much as he can to try and get into a house when he gets home but is getting worried that the rise in prices is going faster than he can save. And looking at flight prices in the 10's of thousands to simply come home gets him depressed sometimes.
Feels very much like they are on the hamster wheel going nowhere fast.

wendel
  • 23rd Jul 2021 11:43am

If you are in a position to get a mortgage, which is hard enough these days, and don't have any future issues in being able to pay it off, then go for it.

sweetypieelizabeth
  • 23rd Jul 2021 11:32am

To Dream The Impossible Dream....It Is Like This For Many People Including Myself....Unless I Want To Live Far Out In The Sticks A Home In The 'Burbs Is Looking Impossible For Me !
At The Moment I Am Renting A Very Cheap Apartment.Old, Needing Things To Be Fixed Regularly But That Is Okay For Me...Ownership Is Not That Important For Me...Home Is Where I Am Comfortable And Feel Safe...Enough For Me.
I Think There Is Heaps Of Pressure Placed Upon Home Ownership..Life Is Very Different Theses Days Even More So With The Pandemic To Consider..Having Good Health Mentally And Physically Is Far More Important Than Having Property To Boast About !!!

freddy2112k
  • 23rd Jul 2021 11:30am

Today to be able to live in comfort you need a two income household with the cost of living and rent /mortgage. . The days of having the Australian dream of owning a home and having a family at a young age are in the past.
Today it's not only the man that has a career. Rightfully so woman are in the workforce and doing as good if not better than their male counterparts. With this in mind people have more money to spend on housing. It's the same in everything in life. The more money people have the more the market place will ask and get.
This has with many other things have driven house prices up. So these days it takes an 2 income household to be able to afford an entry level household no matter where you are.
So to be able to have the Australian dream of homeownership you are spending a large percentage of your combined incomes. Sadly woman are having to choose between their choosen career firstly and then the choice's of homeownership or having a family. Bring a stay at home mother which many women would love to do they are having to go back to work ,not because they love the career they love but to be able to afford a home for her family. Having to put her child into the care of others just so she can afford a home... It's so hard to have both.
I only am a homeowner due to cercumstancerd that allowed me to be able to have a largish deposit but if not for that I wouldn't be one. I have with my wife of 30 years just without discussing it really choose to have a family at a young age so we could enjoy going up with our children. 5 kids later I worked as the sole income so my wife could parent the way we grew up.. A mum at home any and every time a child would come home. Any time a parent was needed mum was there no matter when or where...so we could do this for our family we as a couple decided that if we couldn't have both that we would have a family... Sadly this is not an option for anyone in todays Australia.. to have both the children miss out on having MUM there every time.. having to miss out on the little things that you never get back.. having their first steps etc.. which do you choose... Never regret having my family.

Julie31637237
  • 23rd Jul 2021 11:26am

The Great Australian Dream is just that, a dream that unfortunately will not come true for the majority of Australians. Once upon a time it was possible when prices were lower and there was less competition and job security was strong but in the "new normal" due to covid people can barely afford to pay their rent, never mind about investing in their own home. The loss of jobs and financial security will unfortunately be with us for a long time yet. If you live in a city this dream is near impossible as housing prices are so high. On a positive note if you are willing to make a drastic lifestyle change to a small country town you will find amazing extremely affordable housing with some at ridiculous prices. I was lucky to find one of these when the owner needed to sell due to financial problems. This situation is happening to a lot of people as they are finding they need to sell their assets to make ends meet and here is where you may get a chance at the Great Australian Dream. If you are willing to look where no one is looking you can have that dream. And what says Great Aussie Dream more than a little cottage in the country.

shari
  • 23rd Jul 2021 11:26am

It is very hard for young people to afford for buying a house.

tans
  • 23rd Jul 2021 11:22am

Yes ..all you have to do is what we did when we started out ..save and work for it. We stayed home a lot and focussed all our efforts in reducing debt no extravagant hobbies or vices

snowbelldb
  • 23rd Jul 2021 11:07am

We have been very lucky. We originally owned or the bank owned our home in Sydney. We sold and moved to the Central West NSW. We poured all our extra money into our loan and for the last 10 years, because we worked our butt's off that we now own our home outright. Recently my husband and I decided to have a sea change. So we sold our home and made the decision to move interstate to Queensland. We kept in mind that we are debt free and therefore we decided to purchase a new home within our budget to keep it that way. I dont think owning a home is achievable in most major cities as the prices are astonishing. But if people looked further afield they could own their own home. To me personally it is the Great Australian Dream.

D_D
  • 23rd Jul 2021 11:05am

Nope, it's a hoax to make people spend all their money and force people into being hooked into employment and thus paying tax for life.

Kiki Chiki
  • 23rd Jul 2021 03:05pm
Nope, it's a hoax to make people spend all their money and force people into being hooked into employment and thus paying tax for life.

that's a bit cynical.

Noels1968
  • 23rd Jul 2021 11:04am

For me, being on DSP, the is zero chance I will ever own my own home. My nephew wants to buy but lives in Sydney, and the prices there are through the roof. He said it is cheaper to buy over seas than it is in Australia, which I think is quite sad. So much for the Big Australian Dream

Sil sil
  • 23rd Jul 2021 10:45am

In Sydney, I can't afford to buy in the area I grew up in. I worry for my children, this means we have to move far, breaking down family unity. With my parents aging it will be difficult to then look after them. Property sizes are getting smaller, the trend to live in a unit is growing, reducing the quality of life. I loved having a yard to play in, park my car safely in front of my house, feeling the sun in my living room, opening windows and hanging out my washing. I feel it's very expensive to live in strata buildings, with A/C and dryers on all the time, traffic and congestion everywhere....not the Australia I remember...

bj
  • 23rd Jul 2021 10:39am

Where I live in Tassie it is a real problem to buy a home. The real-estate people have lists of folk who want to buy in certain areas, and boom the home is sold. That is a worry because if you havent already put a deposit on another home then you are in deep water, Rentals i most areas are very high and hard to find. There is a lot of dairy in the area, and produce so the employment is a lot to seasonal workers from overseas. We would like to sell but are unable to find anything similar to what we have closer to town. So we are waiting to see if prices drop, and more homes become available. As to young ones and the Great Aussie dream, I think it is off limits to many for years. Most young ones are struggling to pay rent, and being young they need a few Fun Dollars so they can enjoy life. They have no comprehension of the battle their grand parents went through to get a home and the hard work and suffering that went along with it. To be young these days has many great inventions but some of these give them a false out look on life and its struggles.

Jade Simpson
  • 23rd Jul 2021 08:19am

I recently purchased my home in September after selling my previous home. I find the houses here in Darwin much more affordable and I enjoy living here, less traffic, very sport oriented and quieter. My house has a pool and is up in the trees is fully fenced and has an electric gate.

Kiki Chiki
  • 23rd Jul 2021 03:06pm
I just wanted to add that I have lived quite a frugal life to achieve and maintain home ownership.

well done - I can relate with a similar story but in Victoria.

Jade Simpson
  • 23rd Jul 2021 08:23am
I recently purchased my home in September after selling my previous home. I find the houses here in Darwin much more affordable and I enjoy living here, less traffic, very sport oriented and...

I just wanted to add that I have lived quite a frugal life to achieve and maintain home ownership.

mysteron347
  • 23rd Jul 2021 03:23am

As it ever was. It depends on your priorities.

If you are prepared to forego the weekly restaurant trip, grog, smokes, new cars, overseas holidays, producing a family before you can afford it and work in preference to socialising then - well, it may be dull, but you'll be able to afford a house.

On the other hand, you could have the latest overpowered 4WD in the driveway of your rented property which you take to the shops to resupply your addictions and fill your larder with imported "gourmet" products for your brood. You'll be popular as long as you remain employed and are hosting the parties with the free food and grog. Then you lose your job, or your "friends" find more exciting things to do, and you're left with a weekly accommodation bill that eats a large proportion of your income. That's when it's too late.

Your choice - live for tomorrow or for today.

BernardMP
  • 22nd Jul 2021 09:32pm

Yes, I believe it is still achievable. The good thing is that whilst house prices have gone up, so have salaries. I know that salaries have not kept up with the pace of inflation in house prices but I think people have to be realistic. If you think you can drive a nice car, own a nice new phone with a large data plan, go out to eat in restaurants every few days, buy fancy clothes, wine, beer and take your 6-monthly trips away because you are "stressed" you will always chase ownership. But if you knuckle down, work hard, avoid the restaurants, the outside coffees, the bottles of wine and beer and look for an average house in a nice area you cant go wrong. I still believe in buying an average house in a good area, rather than a good house in an average area as its not just the price of the house that appreciates differently but also the social circle, the school your kids go to, the local shops, supermarkets, hospitals and more importantly the people that "hang around" the carparks, and empty spaces. And stop spending money wastefully. That morning coffee and lunch you buy will cost you $3500 over a year. If you take your lunch to work and buy only occasionally, you'd have around $20000 in 5 years. Thats an expensive coffee and lunch! Add to that cost you pay for your fancy phone and its plan and all the subscriptions you pay, reduced takeaway on weekends, less wine and beer and get rid of those cigarettes and constant "long weekends away" and you'll probably have close to $50000 in 5 years whiich would be 10% for a $500000 unit or 5% for a million dollar house.

Let me be brutally honest. People grumble and want something for nothing. They especially want quick money and instant gratification. Go to uni, take a loan, get a good job and work hard. Settle for what you can afford, not for what you want. And be happy wherever you are.!

Mike84
  • 23rd Jul 2021 11:03am
Yes, I believe it is still achievable. The good thing is that whilst house prices have gone up, so have salaries. I know that salaries have not kept up with the pace of inflation in house prices...

Seriously wages have gone up? I haven’t seen any of that

gobombers
  • 22nd Jul 2021 09:25pm

Me personally I think it's going to be hard with the covid situation as we are all losing our ability to gain money for our dream home as banks are not so reluctant to offer money and I just sold my home and now renting because I got separated with my wife and yes I have got half of the house money but I think for me it's going to be a bit of a struggle to borrow these days and love to be in a home one day I mean a might have the deposit but I still have to borrow about $250,000 and I can't see them giving me that amount if I'm on a pension so I might have to think of getting a business so I don't borrow I think that that's the way to go now days to try not borrowing as in the long run the house will cost at least double the interest and to sell a home you don't get what you expect as the realestate companies go for what's going around the neibourhood which I don't find it far if you done more things to your home.

Bella4927
  • 22nd Jul 2021 08:50pm

I feel like it will be harder for people going forward trying to get home loans. I purchased just before covid and it was hard enough then.
I still is the dream but in the literal sense people are dreaming if they want to buy as it is not achievable for most Aussies.
I think banks are reluctant to lend to people due to the uncertainty of jobs now.

pickle
  • 22nd Jul 2021 07:00pm

Once upon a time Yes was very achievable.These days sadly becoming a bit out of reach for people to achieve.Especially in uncertain times that are present at moment.Unemployment unstable job security and just the mad prices of housing now.Mortgages are low and should be a real opener for purchasing but is far outweighed by job loses and wage uncertainty.Unless you have something to sell and buy on same market becoming a fairytale.Is sad alternative renting but comes with own uncertainty no security can be kicked out If owners get in trouble or just want to sell.Nothing to really call your own and at least if you have a house and fall on hard times or your circumstances change you have a viable asset to consider

Bazz
  • 22nd Jul 2021 06:41pm

I agree with the API. Land will soon be just about the only thing we can invest in now that will hold up against hyperinflation. I've recently made a couple of purchases and my experiences back up the ABS data too. March last year saw everyone fearful & we only recovered months later. In March this year, I again took out a small mortgage on an investment property and found the wait time for loan assessment for me had doubled within a year and both times I was pre-approved with substantial savings. I bought a CBD apartment that had just been built and the only ones who could settle on time were done with cash-only while all the others had to have settlement extended by weeks because of the banks. My agent witnessed in-person at auctions just how crazy prices here in Adelaide have become - extremely high clearance rates and record prices. Even non-auction buyers are bidding with straight cash & zero conditions way above the asking price range! I'm also building a family home and the prices for basics like timber are up 300%.

Home ownership is no longer the Great Aussie Dream. Buying up on sufficient investment properties as part of a balanced investment portfolio is a survival essential, along with owning your own home free-hold titled without a mortgage. Learn from history, of course, but be prepared to throw out the old rule book. Do not rely on government hand-outs nor even banks to play by the rules. All that money in your savings account can now be legally taken by any bank who feels like they're about to go under. Although there were pandemics in the past, there have never been lock-downs and over-arching control like now.

Joh :)
  • 22nd Jul 2021 06:31pm

The Great Australian Dream of home ownership lives on; but the reality is that the one-size-fits-all quarter-acre block approach of yesteryear has not kept pace with our modern lives. Today we live in denser, more transit-oriented towns and cities where high quality and amenity-rich public domain functions as both meeting place and back yard.
In general terms, this means addressing more than just housing and roads and how many schools you’ll need, but also employment, leisure, transport, retail, entertainment and civic services. It means stepping into the customer’s shoes and really understanding their aspirations, hopes and frustrations. Not just designing for the way people live today but designing for how they really want to live in the future.

PGS
  • 22nd Jul 2021 06:08pm

I have looked, mainly in country areas - but that is not likely to happen for a whileas Mrs is in a nursing home & I want to stay close by.

It is achievable, providing you don't want to live in a capital or, possibly, major city.
For the capitals the starting price is far too high without at least $150-200k as a deposit.
200-300k will get places like Kempsy; 90-130k Broken Hill/Albury/Wagga (maybe). Up to 300k it is fairly easy to find places, if you're ok with starting a new life. Of course, if you need lots of medical attention, stick with the capitals & majors - at least you have a reasonable chance.

Thinkhard
  • 22nd Jul 2021 05:52pm

In NSW, property’s market is still remaining up trend. As you mentioned “ property prices will continue to surge, locking more Australians out of the housing market” that’s correct. Furthermore, population is increasing and with property’s market increase in prices this is not due to international investment such as Chinese population. As the researched showed that most of the prices are due to the increase of local community has took most part in the market. Thus, it is also good to either invest or first home buyer. However, interest rate is low at the current COVID 19 - Delta strain. But what happened when the situation cool down and interest rate goes up? So it is better you get a fix rate for several years to back yourself up if interest rate goes up.

dva
  • 22nd Jul 2021 05:04pm

I think it is harder now because the house price just goes up too much even during the COVID pandemic.

ab
  • 22nd Jul 2021 04:52pm

It used to be the dream, but if you look at the insanity shown in the media on what's happening, we could be forgiven for calling it the Great Australian Nightmare.
When I got into real estate as a young man on a single income I decided that it was only going to happen through incremental steps...so my first property was a vacant block in a new subdivision in Kiama Downs...over several years I paid it off, all while paying council and water rates. Once paid off I sold that to buy a home unit...then I slowly paid that off to buy a house. That's it...I think the 'nightmare' is achievable as long as they plan ahead, and don't want to walk into a you beaut new home with all the mod cons, a stones throw away from work. I'm tempted to say it's easier with two salaries but I suspect it's not that simple...the extra salary probably helps you sleep at night, or helps with task of actually living your life while your repaying a mortgage. You know, things having children, taking o/s trips, going to the snow, not living on bread and water, whatever.

As I said, yes it's still achievable but they definitely have to start planning early. If I were a young man today in the exact same circumstance I was in back then, maybe I wouldn't start with a block of land...I'd start with buying blue chip stock portfolio and re-investing the dividends into more until I had enough capital growth to liquidate that and throw that into an investment unit (obviously planning to stay at home with the parents for longer than ideal). During that time I'd hope to meet a young lady with similar financial strategies ... if the planets align and you marry you then the pooled assets may be enough to buy a home on Sydney's outskirts before you relocate at a future stage in your lives. Or am I dreaming? :)

musicmum
  • 24th Jul 2021 10:31pm
It used to be the dream, but if you look at the insanity shown in the media on what's happening, we could be forgiven for calling it the Great Australian Nightmare.
When I got into real estate...

"Tell em' they are dreaming" I never had the planets align and have no hope as a single parent without a job on Austudy and my my son on youth allowance studying also.

MariaG
  • 22nd Jul 2021 04:33pm

I do believe in the great Aussie dream, but already own my home.
I see young people around me struggle just to get a deposit together and once the children come, say goodbye to the possibility of home ownership. Prices are out of hand.

Having said that, I feel the expectations of many people today outweigh the probability of ever having enough resources to even get close to owing a home. 40+ years ago we scratch around, bought a cheap block and went without until we got the stuff we needed to be comfortable and safe. Now, so many people expect all the bells and whistles and a debt lasting 50 years. It's a shame really, because, the sense of achievement that comes with building things up slowly is beyond compare.

I do feel for those out there who are working their bottoms off to just get a deposit together. House prices make things really tough for young Mr & Mrs average to get the ball rolling.

Right now, 2 home upgrades later, hubby and I are in our drop off the perch home. We are on one level, smaller size, near hospitals and shops and hopefully, will be here until the carry us out. We achieved this by hard work and serious budgeting. Probably would be much more difficult in today's environment.

Radda
  • 22nd Jul 2021 04:03pm

Home ownership can lead to a better life and is an expression of success and security. Can we achieve this ownership now with everything that is happening in the world? The world is crazy, people are more concerned than ever, the economy is going downhill, the house prices fluctuate like the mood of some people, up and down with frustration. The joy of owing your own home is more of a dream than reality. It looks like it will stay this way for many years to come. This bastard Covid shattered every dream, every hope. I dont think there is much more to do to repair the damage. More people will suffer, more sadness it will bring into everyone's lives. The rich will become richer and the poor... Dream on Australia... :( But still, people, let's hope for better brighter times.

Keerah1
  • 22nd Jul 2021 03:59pm

Yes if you have $60000 saved. Depending on the home price of course. Hey there’s always retirement IF you have enough to buy. So what I’m trying to say Yes there are possibilities depending on the circumstances. Happy hunting🥳🥳🥳

justal
  • 22nd Jul 2021 03:56pm

Home ownership is still the great Australian dream, however for some it will never be a reality. Although interest rates are at an all time low and it would be a good time to take out a fixed rate mortgage, house prices have rocketed meaning that anyone trying to get in the market has to pay $100’s of thousands more to buy a home. With the need of a large deposit, for many younger people it is almost impossible to save the required deposit amount. The banks have relaxed the amount needed for a deposit a little but this still excludes a lot of people from buying their first home. We were fortunate to sell a home in this crazy market and move to a regional area where we could purchase another home significantly cheaper, but this is not an option for those who need to stay in an area for work, especially anywhere within commuting distance of a city.

Michael31984373
  • 22nd Jul 2021 03:31pm

I've been looking to purchase an investment property over the past year but haven't found the right one due to short supply in the market. It's indeed possible to own your own house. We have 2 kids and single income and we're going just fine paying off our mortgage. I think young people just think they can have it all without saving. My wife and I grew up from humble beginnings where treats were rare and saving up was how you afforded big ticket items. Yes houses are expensive these days - especially with rich people who can't spend their money on luxury travel buying houses instead. But work hard, save up and start small and it can definitely be done

It'sOnlyMe
  • 22nd Jul 2021 02:37pm

I think that to be able to afford to enter the housing market it is very dependant on your income. Prices have recently increased in a rather dramatic way and I wonder if the housing bubble will ever burst.
This is a great time to seel properties but it definitely is not the time to buy.
I understand what the data is saying but I would like to know who is buying. Is it the super funds? Is it people who have SMSFs? Developers? Investors? Corporations? The data is not showing this info.
I think that if you really need to buy, and eventually own outright, a home, then it would be prudent to go a little out of the city where prices can be more manageable.
However, in these times of businesses closing and the unknown ways that Government is reacting to a virus, it would pay to be careful of gathering more debt.

Amelya
  • 22nd Jul 2021 02:30pm

My husband and I arrived in Australia 2.5 years ago from a third world country. As first generation immigrant, we don't have any relatives to ask for help unlike from the country we're from where we live in the house for free. Ever since moving here, rent has took up 60% of our monthly expenses. After some consideration, we decided to cut off all unnecessary expenses to be able to save some money for 20% down payment. I am not sure about the 'Australian Dream' but it seems that there is no other way to escape the rent, especially in the State where we live.

We finally saved up the 20% down payment we need so we won't be able to pay LMI. Me and my husband works as professional so it's not too hard for us to achieve this in 2 years but imagine the people who doesn't have the privileged especially those single parent or the sole provider of the family. However, there are a lot of programs that the government is assisting so that most 'Australians' can own there home.

We've finally signed the contract early this year, and we feel lucky enough to have jumped early since the market is still going crazy as we speak. We got a house and land package, and our builder recently informed us that he could have sold our property for an additional of 100K if he have waited for another 6 months. I've known a lot of people who recently jumped in the market but it still looking for more than 3 months already because they think they are paying more than the price of the property.

I believe that property prices will continue to surge in the next 1-3 years. I can't advice you to jump in now since we all have different circumstances. However, before you plan on purchasing any real estate property, may it be for investment or residential property, you need due diligence to learn all the necessary things we need to consider before buying. Remember, knowledge is power.

musicmum
  • 24th Jul 2021 10:34pm
My husband and I arrived in Australia 2.5 years ago from a third world country. As first generation immigrant, we don't have any relatives to ask for help unlike from the country we're from where...

Wow you must have a good paying job to be able to do that it such a short time.

Allan31627449
  • 22nd Jul 2021 02:25pm

The surge in prices is definitely not helping the first time buyers but the grants and discounts that are available are definitely a step in the right direction.
I would love to see stamp duty scrapped and the first time buyer grant available for both new and existing homes.
Home loan rates are low and currently more affordable, it's about being realistic and looking at what you can afford as a first time buyer.
We moved from the UK 7 years ago and are in our second home, it feels more achievable here than there.

pegz
  • 22nd Jul 2021 02:21pm

I bought my house on my own 20 years ago. Previously I owned an older style apartment which I paid off in 10 years. It was hard getting a loan I remember. I have since paid my second purchase off by putting most of my weekly salary into my mortgage account and living simply. Now I am mortgage free and only work part time. If I was the same age now as when I bought the house, and tried to get into the market in my current Melbourne suburb, it would only be a pipe dream. The same apartment I owned recently sold for $200,000 more than what I paid for my house back then.

GarryM
  • 22nd Jul 2021 01:44pm

I own a residential property I live in and an investment property.
Both properties have mortgages.
I believe home ownership is still possible in Australia but it takes a lot more time to get a deposit.

r23
  • 22nd Jul 2021 01:21pm

Hi everyone,

In my opinion the surge in median housing prices will make it really difficult for new home buyers. I have seen a trend in increase in people buying their second/investment homes since the interest rates are low and their first home valuations have gone up significantly. This will only make it difficult for young and new home buyers in the future. Just an hypothetical example- A 15% downpayment today for a house supposedly costing $550,000 comes down to $82,500 (To save that amount of money for a young and a first home buyer is in itself very challenging. If the same/similar house costs me $600,000 after one year I would have to save an additional $7,500 in a year ($625/month) to make a downpayment of $90,000. This thought scares me.
It will be interesting to see the statistics which mention out of the 55% new mortgages in the month of March how many were first home buyers. I believe this % it would be significantly lower.

Ruskie30748487
  • 22nd Jul 2021 01:19pm

I think it's up to how much you earn and can afford. If you can afford repayments, rates, insurance, water rates, electricity, etc then go ahead and buy a property. If you can't afford all that then rent.

jpi
  • 22nd Jul 2021 01:17pm

I dont think there is an issue with buying a new home. In fact I think it would be cheaper considering the Covid 19 pandemic situation because there are many people in Australia staying home I think this is the best time to apply for a house because you will get better benifits such as a cheaper Home loan and the banks might offer you a better deal on borrowing money for a house. It just depends on where you look for a home loan as different banks offer different types of loans some might be a bit pricey and others might be at affordable rate you just have to google what your looking for and shop around online to find the best possible deal. It also helps to have savings because if you can show the banks that your able to save this is a major plus because it means that you have a better chance of getting a house especially if you have more than the house deposit amount. I think alot of people are looking for a house and I think within the next 3-5 years the housing market could improve it all depends on what the government decides to do with the housing market and only time will tell.

musicmum
  • 24th Jul 2021 10:39pm
I dont think there is an issue with buying a new home. In fact I think it would be cheaper considering the Covid 19 pandemic situation because there are many people in Australia staying home I...

Not cheaper around our area, prices have skyrocketed and statistically all around Australia house prices have risen, so don't know how you can think it is cheaper to buy a house.

ivory
  • 22nd Jul 2021 01:12pm

I think many people will find it impossible to buy a house due to the surging prices. Some places have literally doubled in price over the last couple of years. I know as I'm trying to buy out my brother and the price has risen by $1 million in the last 31 months! The great Australian Dream is gone for many people!

GreenLego
  • 22nd Jul 2021 12:54pm

I don't see an issue here. According to stats, average house price is $550k. AWOTE is $89k/yr. For a couple, the average house price is only 3 times the average annual wage. I think people are prone to living outside of their means. With self restraint, buying a house shouldn't be an issue.

musicmum
  • 24th Jul 2021 11:35pm
I don't see an issue here. According to stats, average house price is $550k. AWOTE is $89k/yr. For a couple, the average house price is only 3 times the average annual wage. I think people are...

Not as cheap as your Lego houses. The house I rent has just been sold for $580,000 which was over $30,000 the listed price and it needs a complete reno job, house still stuck in the 1970s and has had nothing done to it. I have seen houses that normally sell for $600,000 sell for over a million in our regional town, so I don't believe prices have risen dramatically. I don't know which state you are in but average price must be cheaper than here in Victoria.

Captured
  • 22nd Jul 2021 12:39pm

I think the biggest problem is people are buying houses they can't afford or buying houses for "investment" reasons. Overseas purchase of properties i feel are a part of the problem too.

We have been living with Hubby's parents for the past 19 years so we could save up enough to buy a house for our own family. I have been watching the real estate markets for most of that time in the areas we have an interest into moving to.
We are now in a position to buy, having a 30-90% deposit saved up. Obviously the large range of deposit % is because we have a budget in mind and have been able to find places we can afford to buy almost outright, but then there are other places at the upper end of the budget which will mean we'll have to borrow some money too.
The biggest hurdle we face now is the fact we currently live in Sydney and want to move to regional NSW and we are stuck in lockdown.
We are hoping to get to the areas once lockdown eases so we can secure one of the homes we have shortlisted. Over the past few months, over 20 of our shortlisted homes have sold. 2 of those sales hurt quite a bit as they seemed to be perfect for our family and lifestyle and needs. I will just keep looking and hope that some stay on the market long enough for us to at least inspect.

I have noticed that the price of housing has gone up quite a bit over the past decade in the regions we're looking at. What was selling for $70K a decade ago is now asking $200-250K for the same or similar properties.

I have read quite a few articles that mention how many people do not believe the Great Australian Dream of owning their own home will ever be a reality, but there are others who mention that they are very happy to just rent for their whole life as they can choose to live in different areas and have different experiences throughout their lives.

My personal opinion is that i think owning your own home in a Captial City could be very hard to do, especially if the price of housing continues to be pushed up. I think another problem is that developers are paying inflated prices for family homes on larger suburban blocks and redeveloping them to become blocks of flats and then making many millions of dollars from the same block of land. Quite often too, those apartments have been poorly built and the flats sold off the plan which ultimately end up with the home owners having structual issues with their homes within a number of years after moving in.

I hope to move into a country home in the next year or so, so my children have room to play and we can be relatively self sufficient as well as giving back to the town/village we move to.

I think the dream IS acheiveable as long as people are willing to see the bigger picture and think outside the square. People have to be willing to give up on regular holidays, luxuries and expensive things now and save that money for their future home.

saras
  • 22nd Jul 2021 12:28pm

Yes I believe the Australian Dream of home ownership is still achievable although currently it does seem out of reach but as demand slows new incentives will appear.
Historically house prices have risen for example when I bought my first home in 1978 I paid $27500 and that seemed demanding at that time but now house prices have skyrocketed.
The recent increases are due to high demand due to lack of stock and people can afford these prices because interest rates are historically low.
In the past home loan rates say on mid 1900's rates reached 18% or more but loans were smaller. Now it is the opposite in that rates are very low 2% but loans are higher.
The government is offering special low deposit loans for first home buyers so that they can still purchase their first home and builders are designing living in multi level units so that their industry can continue to employ workers.
Although new mortgages have risen this will slow when interest rates begin to rise also banks will start to make qualification tougher and this will help to slow house price increases.
So the great Australian dream will continue.

Amu
  • 22nd Jul 2021 12:19pm

Yes, about Australian dream of home is a very interesting topic. i bought my Unit more than 13 years ago, now that COVID-19 impact the property market is back to business again. But i believe that price of property will be higher but not that higher before COVID-19 pandemic. So, I am working on the ups and downs of property market. I know, as a retired pensioner like me, it's really a big ask to buy a "Australian Dream of home" but despite that, I believe I have super savings and CBA Fixed deposits, savings accounts can meet my requirement to sell my old unit and buy an " Australian Dream Home " in the long run. Hence, I am a step ahead to get my "Australian dream home" true. I believe I can. That's my hope, my ambition. So, time will tell whether I can buy " Australian dream Home" or not? Wait and see.

Vivek32053011
  • 22nd Jul 2021 12:04pm

Yes I do believe the same that home ownership is better. If a working couple stays in a rented house say $2000 per month, they r spending $24k AUD on rent. instead if they purchase a house on loan for $1million dollars. same rent amount they can pay through EMI which will be beneficial for them.

Rossissmellingtheroses
  • 22nd Jul 2021 12:01pm

I do believe home ownership is still achievable, but the purchaser must now do much more research into matters like schools, transport & shopping availability etc. Now, it is probably wiser to look at places that require renovation, which may be done over time whilst living in the property. I think the stratospheric prices are being paid for mostly "move in & do nothing" properties. Another option is to look at a building block or house in a rural town. It can be wonderful for kids, but an important factor is parent vocations.

Cheran
  • 22nd Jul 2021 11:58am

Oh, gee, what a hard question. I think the Australian dream of home ownership is still achievable, ut at a higher cost. by cost I mean it's going t take longer than ever to buld a deposit and I thik the Government should be doing more to assist in that regard. The fact that we are till paying Stamp Duty (which was supposed to be abolished when the GST came in) takes a huge chunk of cash so you have toallow for that as well. Seems young people don't want to start small the way it was done years ago (and yes I'm guilty of being old) but they don't seem to have the patience to WAIT until the tme is right to upgrade - everything has to be now. I speak as one who has had mortgages in the past but now, happily, through hard work we've paid off our mortgage and only have our usual utilities etc, to deal with. I do feel for young people wanting to own their own slice of heaven, but you've got to be realistic and the Banks don't help - they offer far more than can be happily repaid and sometimes cause more heartache.

Ramanjeet kaur31983844
  • 22nd Jul 2021 11:55am

owing the dream home in Australia is certainly very challenging and demanding. But, I believe that it is achieveble also with effective investemnets and savings. Even the Governmnet also supoort its citizens ti buy a new home bu grating the financial support in diffrent states. Banks also also made the mortgae easy and accessible to people to fulfil their dream.

GarryM
  • 22nd Jul 2021 11:50am

I own a residential property I live in and an investment property.
Both properties have mortgages.
I believe home ownership is still possible in Australia but it takes a lot more time to get a deposit.

BCafeS15
  • 22nd Jul 2021 11:49am

No way am I paying the asking prices for property. They can stick it. I’ve done my calculations and I would pay a lot less over a lifetime paying rent than I would paying a mortgage. I encourage everybody to do their own research and they’ll see that what I’m saying is true. Adding to this I can live within walking distance to my work in the city. You don’t have all the associated costs of owning like maintenance, council or strata fees and the likes. I’ve been contributing to super to ensure I can retire.

BCafeS15
  • 22nd Jul 2021 12:37pm
Do you believe your landlord is renting to you at a loss? Are you happy to live with the prospect of having to move out at the will of your landlord & having to pack all your stuff & pay for a...

Hi Ross. I’m 42 now and still renting close to the city. I started renting some 25 years ago where I was paying 150 a week. Currently I pay $350 a week. I did a simple calculation of $400 by 52 week by 50 years which equates to $1040000. Now considering the median house price in Sydney is around that much, tell me how it would make sense for me? I live very basic and only buy what I need and whenever I move most of my stuff is had it and needs to be discarded so moving has never been an issue. Another thing that astounds me is that only 2 generations ago, people could buy a big home on one single basic income very easily. What happened? What is happening now is totally criminal. No one should be expected to pay the sort of asking prices being asked for. You cant take it with you when you die and plus I’ve seen people lose everything too.

Rossissmellingtheroses
  • 22nd Jul 2021 12:05pm
No way am I paying the asking prices for property. They can stick it. I’ve done my calculations and I would pay a lot less over a lifetime paying rent than I would paying a mortgage. I encourage...

Do you believe your landlord is renting to you at a loss? Are you happy to live with the prospect of having to move out at the will of your landlord & having to pack all your stuff & pay for a removalist etc?

dee
  • 22nd Jul 2021 11:47am

I don't think it is as the prices are simply too high and most people simply cannot
afford to buy.

Momma Bear
  • 22nd Jul 2021 11:42am

My brothers and I have just inherited properties and are in the process of selling one of the properties so I can buy a home. It has been hard though with COVID-19 trying to make meetings and settle dad's Will. I hope I can get my inheritance soon so I can move on with my life and buy a place for me and my son to share.

knaufie
  • 22nd Jul 2021 11:28am

We live in a small village of mostly retirees in older homes or working families in modern 'acreage' places. The rental situation is dire; when a new medical centre was opened the owners had to actually purchase homes for the doctors and families to live in. Those of us who never made it to 'home ownership' and are now too old to obtain finance, are living in rental properties and are at the total mercy of their landlords. To move home in your 70's/80's would be quite traumatic. But, due to rising returns, many landlords are selling their rentals and enjoying a great result. Sadly, their tenants are not.

musicmum
  • 24th Jul 2021 11:42pm
We live in a small village of mostly retirees in older homes or working families in modern 'acreage' places. The rental situation is dire; when a new medical centre was opened the owners had to...

Yes and I am one of them, I have rented this house for 15 years and my owners just sold the house to someone who is going to do it up for their holiday rental, or so they say. I am struggling to find anything affordable in my local community that I love. Investors are buying up so fast within days when houses are listed here. They do them up and put high rents on them to pay for their mortgages.

cowboy71
  • 22nd Jul 2021 11:27am

One thing I find with this situation is the media likes to make it appear like its a recent event the whole 'escalating house prices' thing. Fact is, its been going on for over 20 years. I bought my first home in Brisbane in about 2000. Brand new home, suburb about 20km south of the Brisbane CBD. Not a mansion, a definite "first home", but it was $165k. Brand new house and land package. Sold it less than five years later, didn't do a thing to add value to it, for almost $350k. More than double what I bought it for.

As to is the dream still achievable? Yes, as others have said, as long as your expectations are greatly lowered. Don't expect to own a home in the inner burbs of sydney for starters!

I currently live in a nice oldish, smallish home in Ipswich on a large block which cost about $340k 3 years ago. I would think that would be very achievable as a first home.

GK31610191
  • 22nd Jul 2021 11:26am

It is a very hot topic in the market right now as it is just becoming a dream to own a house in today's time.
Fortunately I own a house a years ago. Even rental market is going up.
Everything getting expensive and not going to stop. Prices are increasing day by day . More of this, they are being purchased as well by not first owners. It is definitely not achievable by first owners.

GarryM
  • 22nd Jul 2021 11:26am

I own a residential property I live in and an investment property.
Both properties have mortgages.
I believe home ownership is still possible in Australia but it takes a lot more time to get a deposit.

David W
  • 22nd Jul 2021 11:07am

Thankfully in Adelaide it is still possible but the more affordable suburbs are probably the less desirable! We built our current house in 1996 and I am fairly sure we could not afford an equivalent house / location now. When we built I had been working for 15 years and had paid off my first house, unfortunately when sold it was in a slump and only got a little more than what I paid for it. I wanted to keep it and rent it out until the market picked up but my bank would not let me do so. Within about 2 years I could have sold it for twice as much as prices boomed. To this day I wish I had bank shopped but in those days ‘the bank’ was ‘the bank’. Back on subject I do strongly think home ownership is a dream for most young people starting out and government needs to sort out affordability, I personally think the way forward is to enable the development of the tiny house revolution in special estates / developments allowing people to affordably get into the housing market. A problem is there is a psyche of wanting it all now these days in a lot of young people.

jr
  • 21st Jul 2021 09:13pm

Yes it is affordable you just have to be realistic on what you can get ( eg location, size). Covid has definitely changed the playing fields in terms of where you can work from. Many jobs don't require workers to commute into the big cities as they can be done from anywhere there is internet access.
Young people need to decide they want to save for a deposit on a house rather than spending on other items (eg buying $1k+ phones every year, when a cheaper phone every few years would do the same job. Eating out versus making your own meals. Clothes don't wear out every season and if you can ride your bike to get around rather than run a car you should still be able to fit into the same clothes for years).

Kiki Chiki
  • 21st Jul 2021 07:45pm

This is highly dependent on location, location, location. To purchase in the big cities it's hardly worth it anymore if you're not wanting to spend the rest of your life paying down a mortgage, or buy a small property for the price of a much bigger one further out. But like a lot of people have done, if you look further and have the ability to live outside of a metro setting, you can find something to purchase that won't break the bank or have you chained to a mortgage for 30 years to come. With the advent of working from home and flexible working arrangements for a lot of people, a tree or 'C' change has been on the cards or has made the great aussie dream affordable. The key here is sustainable change - extension of flexible working from home arrangements past COVID lockdowns and work from home mandates. Working from home has enabled some, like myself, to pick up a second job - moving from one to the next within a short space of time. This would not be possible or would be much more difficult if travel between offices was required. This in turn increases borrowing capacity, or aids individuals to pay down debt further. For myself, I was able to purchase in regional Victoria much earlier than I expected last year as I started working from home on a full time basis and was no longer required to commute to work (unless you count commuting from the bed to the coffee machine to my home office...). All in all, its mixed and highly location dependent. There are a lot of people who are still struggling to find appropriate housing to live in, let alone buy. But then there are others like myself who are fortunate enough to be in a position to extend out of overpriced metro areas and invest in a little bit of the aussie dream of their own.

Kiki Chiki
  • 23rd Jul 2021 03:11pm
This is highly dependent on location, location, location. To purchase in the big cities it's hardly worth it anymore if you're not wanting to spend the rest of your life paying down a mortgage, or...

I should add here that I saved for about 12 years whilst renting and was able to pay my half of the house outright in cash. I don't earn a lot but I don't spend a lot either. Like many others have said, If you are frugal, you work hard and save, and buy in an area outside of the metro areas it is still achievable.

michb
  • 21st Jul 2021 03:42pm

With the current price of houses in Sydney, I don't think that many young people will be able to afford to buy their own home. Sadly I think that with the way the world is slowly deteriorating, quite a lot will never manage 'the Australian dream'.

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