Is the Great Australian Dream Still Alive?

Is the Great Australian Dream of home ownership still alive? In today’s world, is it still possible to save up for and eventually own your own bricks and mortar?

If you’re like many Melbournians trying to enter the real estate market, you might’ve found yourself wondering whether owning your own home is now out of reach. And if that’s the case, we’ve got good news for you!

In an environment where so much is changing, the goal of owning your own property is not ‘pies in the sky’. In fact, it’s still very much achievable. This dream is not just alive, it’s being realised by everyday Australians in every state and territory across the country!

Why is Property So Important to Australians?

Is it that we’ve inherited a good dose of courageous settler blood from our ancestors, or that we’ve carried on that indomitable free spirit that has made our country great? Whatever the case, Aussies love a challenge, and homeownership is ingrained into our culture. It’s part of our national psyche.

Like vegemite sandwiches, the cork-brimmed hat and pavlova, owning your own patch of green is embedded into our way of thinking. In fact, some say that Australians are obsessed with property, and whether that’s true or not, one thing for certain is that we don’t give up our dreams easily!

So, why do we so badly want to own our own homes?

Personal Security / Stability

For some, home ownership provides it’s a sense of security. There’s a certain peace of mind that only comes with owning your own four walls, regardless of the size of the house. Being able to settle down and enjoy life knowing that you are in charge of your home, not a landlord, is the long-term goal of many Melbournians.

And of course, there’s the aspect of financial security too. Property is generally considered a safe and secure investment, and by servicing your mortgage on or ahead of time, you can build up substantial equity in your property over time.

Is Now a Good Time to Purchase?

In recent years Melbourne has seen house prices at record highs, which does present some challenges for those wanting to get a foot in the door of the real estate market. But as the old saying goes, ‘when the going gets tough, tough gets going’ – now might be your golden opportunity to purchase.

The rising property prices in Melbourne have plateaued somewhat, and with more supply, the competition between buyers isn’t so fierce. This means that as a buyer, the odds are definitely in your favour and if you play your cards right, you might get the better end of the deal.

Government Incentives

Current government incentives are helping thousands of Australians to overcome the issue of housing affordability.

The First Home Guarantee, the Family Home Guarantee are two federal schemes which have been set up specifically with the intention of helping Australians to secure property with smaller deposits.

Like to know more about these incentives? Get in touch with your local Love & Co team about what you might be entitled to.

Re-focusing on the Vision

As cliché as it sounds, sometimes it’s about being prepared to think outside the box. The iconic brick and tile house on a quarter-acre block might be the stereotypical family home, but that doesn’t mean that it’s the only option for you.

Think seriously about the possibility of starting small and working your way up. While it’s great to set long-term goals for your life, it’s also important to set achievable milestones, and that might mean getting a point of entry into the market and working up from there.

It’s easy to get tunnel vision when it comes to housing, but in and around Melbourne, developers are providing a greater variety of housing opportunities, so be prepared to consider your options. From townhouses and apartments to large family homes, there is plenty of diversity which means opportunities for every family and budget.

What About Rising Interest Rates?

As usual, the media has created a lot of hype about the recent hikes in the cash rate, but it’s important to keep it all in perspective: it’s likely that interest rates will return to pre-covid levels, a time when plenty of first-time buyers were in the market.

The reality is that over the last two years we’ve become accustomed to historically low interest rates. The recent cash rate rises are not unexpected, and banks and other lending institutions are well prepared for these increases.

Want to know more about the current cash rate? Click here.

Get Advice from the Pros

Buying a property is a serious investment, so it’s important that you have a team that you can rely on to help you get it right, first time round.

With more than seven decades of experience behind us, our team of 8 local offices understand all the ins-and-outs of the real estate market in the North. And we’re here to help you realise your dream of owning your own home.

The information in this article is for information purposes only and should not be taken as financial, legal or personal advice.

While care has been taken to ensure that information contained in this article is true and correct at the time of publishing, any changes after the time of publication may impact on the accuracy of this information.

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