BUY, KEEP OR SELL

Make the most of your property decisions

The latest census data reveals some startling property trends that upend many of the long-held assumptions about home ownership. 

While home ownership in Australia has kept pace with global trends, it has declined at an alarming rate across all age brackets. Over the past 50 years, it has fallen from 64% to 50% for those aged 30 to 34 years and from 50% to a low 36% for those aged 25 to 29.

Aussies aged 50 to 54 are holding the fort – for now – with a 72% home ownership rate, although this is still down from 80% in the past.

Housing prices, evolving lifestyles and rising living expenses all combine to create an environment where property ownership is no longer the simple financial decision it once was.

In this issue, we explore the alternatives. First, we look at the reality of the growing number of people who rent by choice or due to affordability issues (“The great divide”). 

It’s interesting that there has been very little debate about what happens to non-homeowners given that the core plank of government pension policy is the assumption, now being challenged, that Australians retire with at least one asset – their home.

Next, we offer answers for those eager to buy property but who are struggling to save enough for a deposit (page 40, “Clear the deposit hurdle”).

Finally, we look at the ever-present challenge of the housing shortage and new ways to invest (page 42, “Investors can ease the strain”).

The concept of “buy, keep or sell” in real estate is changing and it’s never too early nor too late to explore your options, including those you did not know about or may not have considered before.

The great divide