Kate (not her real name) is 30-years-old and works as a paralegal at a property law firm in Sydney.
Despite earning $85,000 a year, she feels owning property is out of reach for her.
“The pandemic made me reflect that I should just be enjoying things whilst I've got the opportunity, rather than focusing on this unattainable goal that might never ever come to fruition,” she told The Feed.
Kate is prioritising fine dining experiences and special edition books over saving for a property. Source: AAP / Diego Fedele
Rather than saving for a house deposit, Kate said she enjoys spending her money on fine dining; she spends anywhere between $300 - $500 on degustations with wine pairings every couple of months.
“My other frivolous expense is book subscriptions, for special edition books. So that can cost me a few hundred dollars a month as well.”
“Previously I would have thought ‘No, you should be putting that money aside’, but now I’d rather have the pretty thing on my bookcase to look at every day rather than thinking about what I could own 10 years from now.”
Degustations involve multiple courses of small meals from a chef in one sitting. They are often paired with wines.
She said it would cost her $1.5 million to buy a house in Sydney’s inner-west, where she lives.
“If I'm saving 20 grand a year, it's gonna take me eight years to get even a 10 per cent deposit, ” she said.
“That's not even taking into account other costs like stamp duty and mortgage insurance.”
“And they say you should aim for 20 per cent of the property value. So that would take me 16 years to save by myself on my current income.”
Home ownership is becoming less of a priority
According to a report released by the financial services company Insignia Financial, the idea of home ownership being a part of the ‘Australian dream’ is shrinking with each generation.
Boomers are much more likely than Gen Z to believe that property owner ship is part of the Australian dream
These attitudes are reflected in the homeownership data from the 2021 Census.
Just over half (55 per cent) of millennials, 25–39-year-olds, were recorded as homeowners compared with 62 per cent of generation X (people aged 43-57) and 66 per cent of baby boomers (people aged 58-76) when they were the same age.
Baby Boomers average more than 10 times the cash savings of Gen Zs.
Gen Z have an average of $9,490 in savings and Gen X $43,956.
Changing values of younger people
Adrian Camilleri is an associate professor of marketing at the University of Technology Sydney. His research focuses on the psychology behind financial behaviour.
He told The Feed that a couple of generations ago buying a home and starting a family in your 20s was considered normal. Now people have different priorities.
“People are now aiming for a psychologically rich life, which is characterised by a variety of interesting and perspective-changing experiences, ” he said.
Adrian Camilleri is an associate professor of marketing at the University of Technology Sydney. His research focuses on the psychology behind financial behaviour. Credit: Shane Lo
“People are taking on more years of formal education, which delays getting married and starting a family. Buying a home tends to be linked to family building," he said.
“Moreover, attending university tends to expand one's horizons to overseas opportunities and adventures. The combined result is an extended period of “finding oneself” in the early-to-mid 20s.”
Primary education student Clare Took, 30, said travel, not owning property, has always been her priority.
“I’ve travelled to south east Asia, America, Europe a couple of times, New Zealand and lived in Canada for two years”.
Clare (not pictured) spent time living in Canada and travelling in America.
“I don't see myself moving from the city in the next five years. Even after I get a job teaching that salary won’t be enough to buy a house in this area.”
Claire said she prefers to spend her money on entertainment.
“I spend my money on going to see live music. I love to go to the theatre, eating out for social events.”
“I like to get my nails done and even getting a haircut every six months adds up, costing about $180 each time.”
Ruby Harvey, 26, lives in Brunswick, Melbourne.
“I always thought it was just going to happen, I'd be working and saving, and then suddenly, I'd have enough and I'd be like, ‘Oh, great. Now I can consider buying property as an option’, ” she said.
“But the older I am getting I can see how much the cost of living is going up and I’m realising that houses are ridiculously expensive.”
Ruby Harvey when she worked in Alice Springs.
“Now I feel like we don’t know what the future is gonna bring, and I want to enjoy my life now. I don't want to suffer.”
