This is a tale of different millennials in 2 countries – the United States and Australia. Both groups are fuelled by the “Great American/Australian Dream” of buying a home.
are miserable but one group has a stronger potential to accomplish its goal
than the other.
published by Bankrate showed that 63% of millennials in the United States have
buyer’s remorse or regret their decision of buying a home. One of the biggest
contributing factors to buyer’s remorse was having to deal with high mortgage
American millennials already have their plate full dealing with the burgeoning
student loan debt crisis which has blown up to $1.5 Trillion and has affected
the ability of the millennials to manage a comfortable lifestyle.
despite the financial difficulties, 79% of the American millennials intend to
pursue their dreams of owning a home. They regard it as more important than
saving up for retirement, buying a car and sustaining a successful career or
pressure to own a home has pushed more Americans to apply for home loans.
According to a report by the Mortgage Bankers Association, home loan
applications have been rising at a rate of 2.9% every week.
home loan rates are also rising. In 2018, the home loan rate topped 5% – 5.05%
for a 30-year term.
Mac, one of the United States’ biggest lending corporations, believes the
combination of factors – rising home loan rates and applications – have made
home ownership unsustainable.
Across the Pacific
Ocean to Australia, millennials are also grappling with the realization that
the Great Australian Dream may end up becoming the impossible dream.
to a study released by the Australian Institute of Health and Welfare (AIHW),
home ownership in Australia is down from 71.4% to 67.5%. However, this was
increased in the number of private rentals from 18.4% to 25.3%.
disparity in data appears to suggest aversion to home ownership is a matter of
choice among the Australian millennials.
Australian millennials prefer to rent homes or apartments that are located
closer to their place of work instead of buying a home and having to deal with
mortgage payments and maintenance costs.
is supported by a survey conducted by a WestPac Life which showed that
millennials would rather save up that get a loan to finance their dream home.
The WestPac study revealed that the Australian millennials would rather save 10
times more money for a home than for a vacation.
the millennials in Australia seem further away from realizing their dream of
home ownership compared to their counterparts in America, they are also further
away from being trapped in a debt nightmare.
justified to say that the greatest dream for anyone – regardless of where he or
she lives – is to own a home. However, you must acknowledge that your greatest
dream also carries the heaviest burden.
Taking on a
home loan will only make that burden heavier. Instead of going for quick-fix
solutions, take the hard road. Save your money. Park your excess cash in
conservative investments that offer higher rates than a savings account and
returns higher than the inflation rate.
should work for your money, make your money work for you through smart
In time, the dream of owning a home will become a reality.