Aussies put off holidays and flash cars to buy first home

AUSTRALIANS are putting off major life goals in order to buy a home, a new survey has found. 

A national survey commissioned by industry super fund−owned bank ME found Australians are putting off holidays and flash cars in order to achieve the great Australian dream of buying a home.

In a survey of 2,036 Australians, ME asked if any had sacrificed life goals to buy their first home. 

Nearly half of Australians (49%) revealed they've delayed important life goals to secure a foot on the property ladder.

Delaying or downgrading holidays is the most common sacrifice (30% of respondents), followed by delaying or downgrading a car purchase (21%).

Love, marriage and babies also get sacrificed in favour of buying and paying off a home:

• 14% of Aussies delayed or decided to have fewer children
• 12% delayed or downsized their honeymoon
• 10% delayed or downsized their wedding

But there are some non-negotiables.

Of those with children, only 7% decided to send their children to a less expensive school; and only 6% delayed or sacrificed starting their own business due to their mortgage. 

Gen Y sacrificing more

The research shows that over two thirds of Millennials (69%) had put off life goals in order to commit to a mortgage, significantly more than Gen X (46%) or Baby Boomers (41%).  

• 41% of Millennials are delaying or downsizing holidays compared to a 30% average.
• 27% are delaying or downgrading expectations on the type of car they want to buy compared to a 21% average.
• 24% are holding off having a family or deciding to have less children compared to a 14% average.
• 23% are cutting back on or delaying weddings and 21% are doing the same with honeymoons compared to a 10% and 12% average respectively.

ME Head of Home Loans, Patrick Nolan, said the research indicates Millenial first home buyers are doing it tougher than previous generations.

"Everyone who buys a house makes sacrifices in order to meet that commitment, but it's getting more difficult − not surprising when house prices have more than doubled since 2000, out-stripping rises in real incomes.

"Fortunately there are a number of smart strategies first home owners can deploy to make it easier, like buying with friends or family, buying in alterative locations, or starting out with an investment property.

Topics:  australian dream first home goals survey

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