Dream move Aussies are being forced to put off

Smashed by the cost of living crisis and worried about an economy on the brink, the majority of Aussies are being forced to bury these dreams for another day.

Smashed by the cost of living crisis and worried about an economy on the brink, the majority of Aussies are being forced to bury their these dreams for another day. Picture: David Caird

Smashed by the cost of living crisis and worried about an economy on the brink, the majority of Aussies are being forced to bury their financial dreams for another day.

With economic growth at its lowest in decades and Australia hit with a housing crisis and rabid inflation pushing prices up to 20 per higher than they were just three years ago, two in three Aussies say their financial plans – such as buying a house – have been set back by at least 12 months.

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Aussies of all persuasions are getting smashed by economic headwinds. Picture: Sam Ruttyn

Meanwhile, 10 per cent of homeowners worried about their capacity to pay off their mortgage.

According to Great Southern Bank’s new No Place Like Home report: “64 per cent of Australians say their financial plans have been set back by at least 12 months due to the economic climate”.

The report looks into “how Australians feel about their financial future in the current environment and whether home ownership contributes to financial security”.

And presently Aussies households are being hit hard by financial headwinds.

“Cost-of-living pressure is one of these challenges and while there is no doubt that people’s sense of financial security has been affected by the economic environment, Australians are a resilient bunch,” Great Southern Bank Chief Customer Officer Megan Keleher said.

“The home ownership journey typically spans many years and isn’t always straightforward.”

“Many are finding creative strategies to keep their financial aspirations alive or pay off their home loans sooner.”

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Homeowners are faring better than renters. Image supplied by Ray White.

AUSSIES REASSESSING FINANCIAL GOALS

The report highlights also how vital homeownership status is to the average Australian in terms of their financial wellbeing, even when it comes to short-term goals.

Homeowners surveyed were up to 50 per cent “more confident in achieving short-term goals, such as saving for a new phone or going on a holiday, compared to renters”, the report said.

“While cost-of-living pressures have prompted many Australians to reassess their goals, the signs are that many remain confident of achieving their financial goals – they may just take a little longer to get there.”

So, despite structural issues with the Australian economy, continued high inflation and seemingly no end in sight to the cost of living crisis, Aussies remain quietly confident about meeting their financial goals.

According to those surveyed in the No Place Like Home report:

+ 40 per cent of homeowners still feel very confident about achieving their long-term financial goals.

+ 90 per cent of homeowners remain confident about being able to pay off their loan.

For homeowners, owning a property outright was the top factor for them in achieving financial security alongside goals of retiring with a comfortable income and being debt free.

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‘STARK DIFFERENCE’ FOR AUSSIE RENTERS

Regardless the situation for renters continues to be a struggling with 39 per cent of renters surveyed saying their “rent has increased significantly”.

Renters surveyed ranked more immediate needs as most important to financial security, like food and bills and access to stable housing.

“The stark difference provides some insight into how cost-of-living pressures are affecting homeowners and renters in different ways, particularly when it comes to feeling financially secure,” the report said.

MANY AUSSIES EXPLORING ‘SIDE-HUSTLES’ FOR MORE CASH

The Great Southern Bank report also found that many Aussies were looking at a ‘side-hustle’ to improve their financial situation.

According to the report: “67 per cent of homeowners have started or are considering a side hustle, hobby business or a second job to help with their home loan repayments”.

“The report shows continued hope and resilience amongst Australian homeowners, despite current financial and economic pressures,” Ms Keleher said.

“It’s encouraging to see that they are using their entrepreneurial spirit to think about ways to boost their incomes and stay focused on paying off their home

“We know many small business operators are also homeowners, so it is not surprising more Australians are considering side hustles or ideas for their own business.”

Isobel Dear with some of the wares she stocks at the Love Me Again Fashion Markets in Milton, Brisbane as her side hustle to her regular marketing job. Picture Lachie Millard

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Originally published as Dream move Aussies are being forced to put off