It’s the great Australian dream, owning your own home, but it is a dream less and less Aussies are likely to realise as home ownership becomes a faraway dream, rather than a reality.
With a quarter of all households stuck in the rental market, the dream of owning your own home is becoming impossible for many Australians. The news gets even worse, if you are between 25 – 34, 51% of you are stuck in private rental accommodation.
How are we ever meant to be able to afford a home?
If you listen to the older Baby Boomer generation it is a case that you’re entitled and need to lower your expectations, get out of debt etc. Cue the back in my day speech.
But, with some experts touting the average mortgage is 7 or 8 times the borrowers yearly wage, this doesn’t really seem like legitimate advice or helpful advice. Especially when house prices continue to rise, how are we expected to be able to afford the below median house prices:
Sydney – $1,025,478
Melbourne – $718,000
Hobart – $392,000
Canberra – $593,000
Brisbane – $490,000
Darwin – $608,750
Perth – $535,000
Adelaide – $430,000
Being a median, most houses will be much higher than the above quoted prices.
Is it possible to own a home whilst in debt?
As a debt management company the people we help are often in debt, a lot of it. They need help to get out of debt, but they don’t just want that, they want to see a light at the end of the tunnel.
The simple matter is, if you are in debt and cannot afford or are struggling with your current debt, you shouldn’t be taking out any more. You should be focusing on how to get out of debt.
You should take steps to address your debt, be this seeking professional debt help or by getting advice and support for cutting your expenses to put more money towards your debt. The sooner you address it, the sooner you can focus on your real goal – owning a home.
The journey to home ownership isn’t easy, and it does take a lot of sacrifice. The key to remember is that life throws things at you, things you aren’t expecting and which are expensive, it’s important to not let this get in the way of your main goal.
Bad credit, and bad debt is not an excuse for saying you will never afford a home, it is a challenge to get yourself out of debt and reaching towards the things you want. There are now more and more lenders out there who are happy to lend to people who have a bad credit rating, you just need to speak to a specialist mortgage broker who can unlock these deals for you.
Home ownership is slipping out of reach for many Australians, but with a bit of support and a helping hand it doesn’t have to be.