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.