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Young Australians seem to be losing their confidence in their ability to achieve homeownership as they grapple between their short-term cost of living issues and their long-term financial goals.

Douugh’s Wealth Health research found that around nine in 10 Australians are worried with their financial situation.

Given their financial worries, more than a quarter of Australians are not confident they will achieve homeownership. Still, one in three Australian still have homeownership as their biggest financial goal.

The share of Australians seeing property as their current wealth building strategy varies — only 12% among 18-22 years old, 15% among 23-27 years old, and 21% among 28-32 years old.

In terms of gender, 78% of men are “somewhat confident” about their ability to achieve homeownership, compared to 66% of women.

Douugh founder and CEO Andy Taylor said the rising cost of living is taking toll on young Australians’ long-term goals and financial stability.

“The dream of home ownership is almost at the point it feels unachievable for a lot of Aussies — but it’s important we don’t lose sight of creating sound money habits in the meantime to build the necessary foundations to bring our long-term financial goals back into reach,” he said.

For more than a third of Australians, a lack of savings, unexpected expenses, and living paycheck-to-paycheck are considered key barriers to their financial goals.

Still, many Australians recognise the importance of setting financial goals and strategizing.

In fact, around four in five said building long term wealth is crucial, while around the same are utilising savings as their wealth building strategy.

However, 75% of Australians admitted that they have never sought professional help of advice, while 60% said their knowledge about investing is limited.

“Utilising a range of wealth building strategies, investing in small but frequent intervals, and seeking professional advice if possible is going to support Aussies through this rough period without having to choose between now or then,” Mr Taylor said.

A recent study by ING showed that the rising costs of living and the gradual winding of the pandemic changed the traditional concept of an ideal home for many Australian families.

The study found that many homebuyers are willing to sacrifice a big home to be closer to amenities, family, friends and work in order to spend more time doing the things that matter most to them with the people they care for most.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
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4.5 STAR CUSTOMER RATINGSINCLUDES NOV RBA RATE INCREASE
  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset 
4.5 STAR CUSTOMER RATINGSINCLUDES NOV RBA RATE INCREASE

Variable Home Loan (LVR < 90%)

  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset 
Variable
More details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMEYM. (T&Cs apply)

Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMEYM. (T&Cs apply)
Variable
More details

Variable Rate Home Loan – Refinance Only

    Important Information and Comparison Rate Warning

    Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of November 29, 2023.

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    Photo by Pexels from Pixabay.