The strong desire for home ownership in Australia

on April 18, 2024 / by Financial Mindfulness

The desire to buy a home is deeply ingrained in the Australian psyche and culture. It stems from various factors that reflect both practical considerations and emotional aspirations.

Here are some key reasons why Australians aspire to buy a home:

Sense of Security and Stability

Homeownership is often equated with security and stability, providing individuals and families with a place to call their own and establish roots in a community.

Owning a home offers a sense of permanence and control over one’s living environment, which can be particularly appealing for those seeking stability in an uncertain world.

Investment and Wealth Building

The strong desire for home ownership in Australia is viewed by many Australians as a sound investment and a pathway to long-term wealth accumulation.

With Australia’s historically strong property market, homeowners may benefit from potential capital gains as property values appreciate over time.

Additionally, paying down a mortgage allows individuals to build equity in their property, which can serve as a valuable asset for future financial goals.

Cultural Norms and Expectations

In Australian society, home ownership is often seen as a rite of passage and a symbol of adulthood and success.

There is a cultural expectation, especially among older generations, that individuals should strive to own their own home to indicate financial responsibility and achievement.

Financial Stability in Retirement

Owning a home can provide financial security in retirement, eliminating the need to pay rent or make mortgage payments during one’s later years.

For many Australians, home ownership represents a form of forced savings and a means of ensuring financial stability in old age.

Sense of Pride and Identity

Homeownership is closely tied to notions of pride and identity, with many Australians taking pride in homeownership as a reflection of their personal achievements and aspirations.

Owning a home allows individuals to put down roots, create a sense of belonging, and establish a place for themselves within their community.

Desire for Independence and Autonomy

Homeownership offers a level of independence and autonomy that renting cannot provide.

Homeowners have the freedom to personalize their space, make improvements, and make decisions about their property without seeking permission from a landlord.

Family and Future Planning

For many Australians, buying a home is intertwined with family and future planning.

Homeownership allows individuals to create a stable and secure family environment, provide for future generations, and pass on assets to their heirs.

It represents a significant milestone in many Australians’ lives, reflecting their aspirations for stability, success, and prosperity.

Happiness: Homeowners versus Renters

But are homeowners happier than renters? According to Great Southern Bank, they are.

In their No Place Like Home report, homeowners are happier with their current housing situation than renters.

According to Megan Keleher, Chief Customer Officer at Great Southern Bank;

“there is the strong link between home ownership and happiness- in fact seven out of 10 Australians say home ownership is important to their overall happiness.

Just 5 per cent—or one in 20—say it is not at all important. Perhaps not surprisingly, happiness with our home increases as we get older and as we move towards becoming mortgage-free.”