For young Australians, housing ownership does not need to be out of reach, this isn’t going to be a condescending article with ‘the hottest regurgitated tips to save’ but will hopefully ignite some self-reflection which is overdue for many people, not just young Australians who are saving for their first home.
Many Australians are experiencing a slowdown in wage growth and as a result of job competition are less likely to negotiate a significant raise. As a result, many Australians spending less wherever they can.
Is this a bad thing? Not for the individual, on a macro-economic scale it might be, although some Australians may be counting on a recession to take advantage of lower house prices. Spending less, may be a good thing. Australian’s are slowly learning to save.
One view may be that Australian’s want to be less reliant on debt to purchase their new home and therefore see no reason to save for the minimum deposit. Perhaps, Australians are going to keep on saving, giving the banks the wake up call they need after the ‘slap on the writ commission’.
Simply, housing doesn’t need to be out of reach as we know that Australian’s are investing in education and building their second income, becoming less reliant on their traditional wages.
The increase in home and land packaged will likely make the possibility of owning new home in the coming years more of a reality. New investors and first home buyers shouldn’t get their expectations up about buying that extravagant first home – it’s out of their budget. New investors and first home buyers need to be realistic in the next coming years.