dream still exist? Does the
In New Zealand, it’s the Great Kiwi Dream: the bach, the boat and the BMW, with the ‘three Bs’ an accepted stereotypical view particularly of why Kiwis go into business and what they expect to get out of it
Are those dreams fading? In November last year, ME Bank released new research looking at the pandemic’s economic impact on the younger generation. Almost seven in 10 young Australians believed that owning a home is increasingly impossible to achieve and that owning a dream home, finding a dream job, and retiring at or before the age of 65 is harder to achieve for their generation. Prior to last year, there had been a slow but discernible shift happening in Australia. We were doing more travel overseas and the most travelled were aged 30 to 34. In fact, 25 to 34-year-olds took almost the same number of overseas trips in 2019 as all Australians took in 1990.
Which country’s inhabitants most aspire to home ownership?
Great Australian Dream
A Google search brought up a 2019 list of countries by home ownership rate, the ratio of owner-occupied units to total residential units in a specified area, which was not exactly the question asked.
‘The dream’ stems from a belief that home ownership can lead to a better life and is an expression of success and security. Once upon a time it was only about home ownership, but our goals kept expanding. A home. A family. Steady employment, and a comfortable retirement.
The first ten on the list were Romania, Hungary, Slovakia, Singapore, Cuba, Lithuania, Croatia, China, North Macedonia, Nepal. At 41, Australia was sandwiched between Canada and the United States. New Zealand was 46th.
According to a finder.com.au survey, many of us think we’ve made it financially if we have paid off our house, have a healthy stash of super and take an overseas holiday every year (it obviously wasn’t a 2020 survey!).
THE NEW ENTRY IN THE INVESTOR DEMOGRAPHIC
‘livevestor’
Buyers who use government stimulus to secure their first home based on its long-term investment potential rather than being seen as their long-term home.
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The great Australian dream for many millennials had become, through both desire and necessity, the ability to travel widely and live and work anywhere rather than a big house and backyard. Then along came COVID and stymied that dream.
Could rentvesting be the new dream? Has the new dream for today’s generation become more practical, aligned with a stable income, good health and paying bills on time? Buying your first house and not actually living in it is emerging as an effective way for young Australians to get a foothold on the property ladder. Rentvesting is about buying where you can afford and renting where you choose to live. If you live in your own home, your loan repayments go towards paying down your debt.
