5 reasons home ownership can be challenging

If you’re deciding whether to buy your first home, you’ve probably heard from some doubters. Some people believe the younger generation aren’t taking buying a home seriously. Coffee and avocado, anyone?

However, the times have changed and many millennials are doing a great job to work towards their dream of owning their own home. If you're still yet to join the property market here are some reaons you might be finding it more difficult, but remember, it's still possible, just make sure you're making the right financial decisions for you. 

  1. House Price-to-Income ratios have changed

    In the past five years alone we’ve seen national dwelling prices rise by 19%, while research suggest household incomes only rose by just 9.2%.

    Looking back on earlier years, we can see wages are almost 10 times the 1975 level, but houses cost over 30 times what they cost then. No amount of takeaway coffee is going to cover that shortfall.
  2. Everything else costs more too

    If you compare the basics, it doesn't seem too bad. A loaf of bread costs ten times more than 40 years ago, and we earn 10 times more.

    Factor in how much home loans and rent bite into the budget, and everything else is less affordable. Plus, today’s 20 and 30-somethings are dealing with relatively new costs like health insurance and staying connected online.
  3. More flexibility with key milestones

    Every generation has their own timetable for key milestones. Forty years ago, people got married when they were 22, now it’s closer to 30. As people wait to have children, and life expectancy rises, buying a home may come at a later stage of life.
  4. Living in a sharing economy

    For generations growing up as part of the sharing economy, there’s not as much pressure to own everything right now. Milennials may choose Uber over buying a car, and use Airbnb for holidays. Home ownership is still the dream for most, but it doesn't happen for everyone in their early 20s anymore. Being part of the sharing economy helps build patience.
  5. Work priorities have changed

    Travel or choosing to spend time with family and friends instead of working more hours are both good investments. There’s no shame in valuing a work life balance.

    It’s true that some people will never own a house, just like in every generation. If that’s the case, there’s no reason to despair that you can’t crack the housing market. You can still save money and invest in other ways to build your financial future.

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Home Buying

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