Property priority over other life goals
Nearly half of Australians were sacrificing life goals in order to be able to purchase property, industry-fund owned bank, ME Bank reveals..
A survey of 2,036 Australians found 49 per cent had delayed life goals to buy a home, while 30 per cent of respondents delayed or scaled down their holidays, which was also the most common sacrifice.
Many were also delaying marriage and children, with 14 per cent of respondents delaying or deciding to have fewer children, 12 per cent delaying or scaling down their honeymoon, and 10 per cent delaying or downsizing their wedding.
The survey also showed generation Y (18-34) were sacrificing more, with two thirds of millenials (69 per cent) delaying life goals for a mortgage, compared to 46 per cent for generation X and 41 per cent for Baby Boomers.
ME Bank head of home loans, Patrick Nolan, said this illustrated that it was tougher for millenials to attain their first home than previous generations.
"Everyone who buys a house makes sacrifices in order to meet that commitment, but it's getting more difficult − not surprising when house prices have more than doubled since 2000, out-stripping rises in real incomes," he said.
However, only six per cent of all respondents delayed starting their own business due to their mortgage, while only seven per cent with children decided to send them to a less expensive school.
AUTHOR
Malavika Santhebennur
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
