The Australian dream is still alive
For current homeowners and those that are trying to get into the market, it seems like a massive effort to get “in” and make the Australian dream come alive.
If you are like me (and I think a lot of us are the same), we have been brought up to believe in and chase the “Australian Dream”. We have been taught to get a good education, get a good job that pays well, save money and buy a house.
Until recently, everything I knew about property was taught to me by my parents. They followed the Australian dream philosophy, and it worked well for them. So this is what I followed to purchase my first home (a unit).
The prospect of becoming a homeowner in Australia will evoke a sense of success, security, and if you’re lucky will open a door of prosperity.
What has happened to the Dream
However, in today’s market, it is getting more difficult for new home buyers to get in on the “housing action”. So it would seem that the Australian Dream is slipping away. The Australian homebuyers statistics, as reported by the ABC , state that there was only 13.2% of first home buyers in Australia for 2016-2017. This indicates that the first home buyers market has been dropping off since a small peak in 2011 with 21.1%, and further more since 2009, where there was a 30%+ average of first home buyers.
However there is Good news – the Australian Dream is not dead, although it has changed. Australia has gone through some significant changes in the past 30+ years. We have changed politically, economically, and demographically and our relationship with the rest of the world has changed. So the Dream has to, and needs to change. You can still own your home, and you can still get into the market! But, you need to take the time to get educated and get professional insight into today’s market. Please do not rely entirely on family members and friends for advice. As much as we love them and they are often a good source of a lot of wisdom, they may not have current expertise and intimate knowledge about the property marketplace.
Get educated, get a strategy
The Growing trend for acquiring property is “Strategy” – you will need to employ a strategy that is right for you. Among others, here are a few to choose from:
Flipping (buy low, sell high)
Renovate to sell
Renovate and hold, and
My personal favorite – buy and hold a brand new house.
This method will bring many tax benefits, along with other long term benefits if done right.
If I was to start again, I would not consider buying my first home as an owner-occupier dwelling. I would start with an investment property to get the most benefit from owning a house. Believe it or not, it is cheaper to hold a new house as an investment than to live in it. So you would continue to rent while your investment grows, thus creating more wealth to have access to.
“The poor and the middle class work for money.” “The rich have money work for them.”
– Robert Kiyosaki author of Rich Dad Poor Dad.
What can I do?
If you can avoid the luxury of living in your first home for a couple of short years, you will be setting yourself up for a greater chance of creating wealth using property. A buy and hold strategy for your first home can sound quite simple, but unless you follow a few simple principles, you may not see a return on your investment.
My first home (a unit), was a disaster in terms of capital growth. I bought the property under advice from my parents. It took about 8 years before I saw any significant growth, which was just enough to buy my next house.
This process can be short-tracked if you get the right advice. You may have access to all relevant data about buying a house, but do you know what to look for? As for me, I don’t know everything I need to look for. I am not an expert, nor do I have the time to spend researching development plans for a city or region.
What I Did..
So, I engage experts to do the work for me.
The Dream is not DEAD – it is alive, but it has changed. It is time for you to change. Get educated. Look into property strategies – there are a few to chose from – choose the one for you. The housing market is not easy or cheap. You can discover how to do it right, by getting expert advice. Sometimes you may have to pay for it, but you will get a better result in the end. Be of good courage, and go conquer the Australian dream.
Check out our Home Page to get more information.