According to a new survey by ME Bank, 18% of Australians believe they will never be able to afford to own a home.
I don’t know about you, but I find that disturbing. You see, I have a deep belief of my own that owning home is the foundation for wealth for most people. Studies around the world show that people who don’t own homes have far less wealth than those that do.
What really gets me squirming is that the survey goes on to make more distinctions – it showed that for people under 30, the percentage of people who believe they will never own a home jumps to 26%. That’s a quarter of the next generation can’t see themselves ever owning a home – something that most of us boomers and even Gen Xer’s have taken for absolute granted.
Are we headed for a generational lockout of home ownership?
Will your kids finally own a home only when you pass from this earth?
Or should we be looking at this from another perspective?
It is very clear to me, after more than 30 years of observing and investing in the real estate market that is has never been more challenging to own a home, let alone stretch to invest in another property for investment purposes. And that is despite record low interest rates that look to be relatively stable for the immediate future.
I think we need national action on improving the supply side of the equation – making it easier to access finance so developers can build more homes, streamline approval processes that hold up land development and housing projects, adopting cutting-edge construction techniques that will produce cheaper, more energy and environmentally friendly homes and most importantly, reducing the overall taxation on housing – which adds up to 30% of the cost of housing which goes in federal, state & local taxes.
But even these things, if implemented overnight, won’t change belief.
I believe that everyone who wants to own a home should be able to. This why I passionately support Habitat for Humanity (www.habitat.org). I also believe that if there is a will, then there is always a way. Belief is such a powerful factor in our lives, it shapes our thinking, actions and decisions. At age nineteen, I formed a belief that I needed to own real estate in order to have a financially free life – a life of choice. I then made a series of decisions and then took massive action to own as much property as I could, all based on my belief.
If you have read my first book – “It’s Easy to be a Property Millionaire” you may recall my story about my first property. I didn’t have enough deposit, so I went out and got a personal loan to make up what I needed and then got my first loan approval.
All because I believed.
One in four of our population aged under 30, does not believe they will ever own a home. What if we could change that belief? What would it take?
A last thought for you –