New research finds that homeowners are better off emotionally as well as financially – yet the younger generation is essentially blocked from the market.
As a millennial living in Sydney, I know from the very beginning that I won’t be able to build my own home unless I win the lottery. It’s a very confusing situation, given that our parents were still in the generation that still believed they would grow up, get married, and buy a house.
This isn’t doomsday, or anything to do with avocado toast, it’s just reality—and seems to be getting truer every year.
In the past 12 months, Australian housing prices had Highest growth rate in 20 years, At the same time as prices rise, income is not increasing to meet them. Whereas in the 90s a homeowner only needed to spend a third of his earnings to pay off his debt, these days new home buyers have to set aside almost double of their earnings.
So no, it’s not laziness, or complaining, or entitlement – it’s hard facts. According to a new study, it is also affecting health.
A survey of 30,000 respondents by Finder Turns out that being a renter makes you more stressed, less happy and save less money than your home counterparts.
While 83 percent of landlords reported being happy, only 69 percent of renters could say so. Also, 26 percent of renters are on the other end of the emotional spectrum, admitting that they are ‘extremely stressed’ by their financial situation. Only 15 percent of homeowners felt the same way.
Which is understandable, homeowners were found to save almost twice as much money per month than renters.
A reminder that this extra money has nothing to do with someone working harder than anyone else. In fact, there was only a six percent difference in the number of tenants and landlords who felt secure in their jobs.
So owning a home puts you in a privileged position for both your emotional and financial well-being, yet younger generations are inevitably being blocked from the market through no fault of their own.
Despite this, some real estate is still expected from its tenants. Buy Chrissy Gifts for Landlords, What is the time to live