The great Australian dream has meant different things over time, but it is most notably used in reference to owning one’s own home – either with a partner, or on one’s own. The Australian dream to own real estate has been a long-running fantasy for millions of Australians. Across generations, this dream has been steadfast, and the current percentage of Australians surveyed that own their own home is at around 75%, with the other 25% being renters. As the dream continues to live on through the current generations, the thirst to own a piece of real estate down under has not only not wavered, but has heightened. There are some that are cautious about buying real estate, as investing in property requires a degree of permanence. Once one buys property, it becomes an investment of sorts. Real estate requires commitment, and it can be easy to feel scared or put off in the wake of investing in purchasing a home. Renting is great, but the reality is that in Australia (not to mention most of the world) rental prices are through the roof, and even when making a decent income, renters – especially young renters – are barely scraping by with little to no savings to show for their hard work. Now more than ever, young people should feel empowered to invest in their future, rather than pay for someone else’s mortgage.
It is undeniable that there are many mistakes that young people can make when looking to purchase real estate, but all of these rookie errors can be avoided if one is smart and does their research before investing in any kind of real estate. The biggest mistake is buying a piece of real estate that is perfect for one’s current circumstances. This might seem shocking, but the logic behind the idea throws it into focus – a home is a long-term commitment, and one should buy a home with their future in mind, not only their current reality.
If one buys a studio apartment in their twenties, it seems like the perfect investment. But further down the line, if one has a family (or just generally needs more space for their partner and themselves to have enough room) a studio does not have sufficient space to live comfortably. It might seem like common sense, but it is easier than one might think to buy with current goals in mind, and future goals in the back of the mind. What may surprise some people is that renting can be (and often is) far riskier and more tumultuous than biting the bullet and buying property. The most obvious risk in renting is that oftentimes tenants end up paying astronomical prices to rent properties – so astronomical in fact, that they have little to no savings at the end of the week.
Being aware of the opportune time to buy property can make the world of difference in the mere opportunity to invest in real estate. Buying a home when one is unsure if they are going to stay put in the area for a prolonged period is not the smartest move. Because real estate is a commitment, it only makes sense that buyers should commit to a property only when they have decided to either settle in the area for longer than five years, or when they plan to rent out the property themselves while they travel, move into a different home, etc. When an individual is confident in the area that they live in, then they can be steadfast in their decision to purchase property in that area.
Simple tricks like being smart with everyday spending shape the way that an individual lives – in adjusting small aspects of everyday life, one can make the room and finances for big changes. Additionally, taking advantage of real estate opportunities like house and land packages can bridge the gap between the individual that cannot afford to purchase real estate, and the individual that can suddenly make their dreams come true. Little things like doing one big grocery shop rather than multiple little grocery shops throughout the week, and putting loose change in a jar (cliché, yes, but very effective), can make all the difference.
Investing in one’s future and buying real estate can be a daunting prospect. As tomorrow’s generation gear up to take on the world of property investment, they are being forced to confront their fears head on and make the choice between investing in their own future by buying real estate, or continuing to put their hard-earned income into the pocket of someone else. With the right research, tools, and information, young home buyers can feel confident in their decision to purchase real estate and end up in a home that not only will prove to be an investment in their future, but the future of the future generations of their family.