Sydney house prices, big mortgage mean woman can’t leave her $260k job – World News

Sydney house prices, big mortgage mean woman can’t leave her $260k job

A woman hates her “soul-destroying” corporate job, but can’t afford to leave it because of her $2.3m home in Sydney and her “sky-high” mortgage.

Kate Thomas* earns $260,000 a year, yet she compares her salary to a “golden handcuff”, leaving her stuck in a job that makes her “pathetic” because she needs to pay off a mega mortgage. it occurs.

He is one of millions of Australians in the same situation, especially as property prices have skyrocketed during the pandemic.

New research has revealed that two-thirds of Australians feel they have to choose between their dream job and being able to pay off their mortgage or buy a home.

Research from Bluestone Home Loans found that high-income Australians, Millennials and NSW borrowers were most likely to be forced to remain in their current jobs.

Big earners in particular felt trapped, with 60 percent of those with household incomes between $100,000 and $149,000 stuck in their jobs, compared with 57 percent of those earning more than $150,000, only Earned less than 42 percent. $50,000.

‘Destroying the Soul’

While Ms. Thomas said she is looking for a new job, nothing pays as much as her current marketing role.

The positions she’s seen will require a massive $40,000 pay cut, meaning she’s “stuck” at her tech company employer, after buying a $2.3 million three-bedroom home in Sydney.

The mother, in her 30s, said her husband doesn’t have enough money to take a big hit on his salary and that paying off such a huge mortgage is “quite stressful”.

Yet, especially for the past two years, she felt that her work had been “soul destroying”.

Not only have they not been challenged, but their ethics and values ​​do not align with the business’s focus on profits, she said.

“I feel like I want to make a difference and improve things for others but by working in marketing you are selling s**t to people and I just don’t feel complete that way. What I’m doing I feel a certain level of guilt for that,” she told news.com.au.

“Maybe as I get older and have kids, I don’t feel like I’m giving back to society and my ethics and values ​​have evolved over time. That’s why I’m part of a bigger corporate giant and Wheels Moving around and it’s about being profitable, but how am I helping people and giving back to society?

But Ms. Thomas does not see an end to her misery, which she said “eats him up”.

“I feel like I’m on that mouse wheel where I’m just moving and I can’t really get off and I can’t change anything,” she explained.

“I’m sad at my job… there’s a lot of political stuff and the company culture isn’t great and it’s always about making sure the optics are right.”

He said the Australian’s “weird obsession with home ownership” didn’t help as the couple felt pressured to put it on the market a few years ago, yet still didn’t love the home they bought.

“I’m afraid if we didn’t have the house we’d have to pay the price and be in worse shape in the long term, so I hope it pays off in the long term, but who knows? It’s a strange place to live in.” is,” she admitted.

“I think I need to change my mindset and accept it, but I feel uncomfortable about it. But for the foreseeable future I can’t see anything changing with little kids, because we Call them money pits.”

Instead Ms. Thomas “fantasies” about becoming a psychologist, counselor or teacher to help people, but she said that would mean selling the house, which she said was impossible.

Millennials and Gen Z . bad choice for

Yet the stress around careers and home ownership is worse for the younger generation, the research found.

More than one in three Australians believe that pursuing their dream job will affect their chances of buying a home, with Millennials and Gen Z feeling it the most.

For borrowers who are not already in their dream job, 40 percent were planning to pursue their preferred career path within five years of buying their home, yet 50 percent were after their dream career. There was no plan to leave.

James Angus, chief customer officer of Bluestone Home Loans, said there is a lot of noise about The Great resignation as people reevaluate their priorities in the wake of COVID-19.

“Nevertheless, in Australia, the number of workers who have resigned has fallen to the lowest level ever. According to data from the Australian Bureau of Statistics, only 7.6 per cent of employed Australians changed jobs as of February 2021, a number that has been declining steadily since a peak of 19.5 per cent in 1988-89,” he said.

“As home loan affordability has declined sharply over the past few years and loan restrictions have been tightened, Australian borrowers have had to make the tough choice of whether to pursue their dream job or buy a home.

“And the data is showing that many people are choosing to realize their financial goal of owning their own home before pursuing their career goals. But ultimately, feeling trapped in a job is not good for individuals and it is not good for the health and innovation of the Australian economy.”

*Name has been changed

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