Buying and Selling Houses in Australia The Great Australian Dream in 2024

Introduction

There’s nothing more Australian than being a homeowner. The Great Australian Dream has always been about working hard, saving, and sacrificing to buy property. However, the circumstances surrounding homeownership have changed over the years. In 2022, the Australian Bureau of Statistics reported that the likelihood of owning a home for those aged 25-39 decreased with each successive generation. This means that for many younger Australians, the dream of homeownership seems more like a fantasy. Despite the odds, 54% of millennials managed to enter the property market by 2021. But how did they do it? In this article, we will explore the stories of six young Australians who managed to achieve the 1980s dream of homeownership in 2024.

Maggie, 24: Bought an Intergenerational Home

Maggie, a freelance writer and content creator, bought a semi-detached unit in March 2022 with her parents. They all live there together, including her younger sister. Maggie contributed $100k towards the deposit and stamp duty, while her parents and she split the mortgage three ways.

Maggie is aware that her situation is unique. She has been working since the age of 14 and has always balanced multiple jobs in the freelance media space. She also accessed the Victorian homebuyer fund, a shared equity scheme where the government co-owns the house. This allowed her to buy sooner and at a higher price.

Her decision to buy with her family was driven by her desire to help her parents financially. As a child of Chinese immigrants, she feels a sense of responsibility to support them. Maggie believes in shared responsibility when it comes to finances, which is a cultural belief she holds.

While buying with family relieved financial pressure, it also came with sacrifices. She didn’t have the sharehouse experience or the freedom to travel and spend as she liked. Nevertheless, Maggie feels proud and grateful for being able to build this nest egg and strengthen her bond with her family.

Mary, 34: Rode the Rising Tide

Mary, who works in publishing, bought her first apartment in 2019 with an inheritance from her grandfather and the help of her parents. She was able to sell it for a profit and buy a house.

Mary initially wanted to buy because she had inherited $120k from her grandfather. She also took a bank loan of around $380k and her parents contributed the remaining amount. The profit from selling the apartment enabled her to buy a house, but she had to take another loan from her parents.

She considers herself lucky to be in this position and acknowledges that she wouldn’t have been able to do it without her parents’ support. Mary went to a privileged private school where most of her friends are in similar situations. However, she feels uncomfortable about the different lifestyles between her and her friends now. Mary believes in being transparent about money to address any curiosity about how she afforded her house.

Ellen, 34: A Gift Deposit

Ellen bought her apartment in 2017 when she was 27 years old. The entire $60k deposit came from her mother, who had received the money from her own mother’s passing. Ellen had just started her teaching job and didn’t have any savings.

Her mother had been suggesting for a while that she should buy something, and Ellen always reminded her that she didn’t have the finances. Her mother offered to help her out with the money she had received from her grandmother’s passing. Ellen’s parents had received help from her grandmother when they bought their place, so they were happy to return the favor.

Ellen doesn’t think she could have done it alone, even with her mother’s help. She faced challenges getting a mortgage with gifted money because banks required “genuine savings.” It wasn’t until a bank finally approved her application that she was able to buy the apartment. Her mother doesn’t expect the money back unless Ellen sells the place to buy a property with a future partner.

June, 34: Freelanced for a Third Income

June, a producer, and her partner bought their apartment in 2022. They managed to save a deposit through intense work and multiple income streams.

The apartment cost $690k, and their deposit was $70k. They didn’t receive any external support and were able to save the deposit themselves through their work. Although they weren’t good at saving, they had a period of intense work where they effectively had three incomes.

Despite buying their place, June sometimes questions if it was worth it. She worked tirelessly for years and now feels trapped by the mortgage and high interest rates. Additionally, being in an apartment means constant owners corp fees and unexpected expenses for repairs. June wonders if investing in her and her partner’s creative work or traveling would have been a better use of the money.

Joshua, 33: Bought with Friends

Joshua, a service designer and artist, bought a rundown 20-acre regional property with five other people. They are currently renovating the property and renting it out on Airbnb.

The property was purchased for $1.42m in 2021, and the deposit was $562k. Joshua and his partners decided to spread the repayments and capital outlay by buying together. They assumed that having multiple parties would be seen as less risky by banks. However, they were mistaken, as banks still required one party to be able to service the entire mortgage.

Obtaining the loan was a challenge, and they had to approach Joshua’s parents to refinance their house and cover the remaining amount. Despite the difficulties, Joshua feels great about their choice. The property has brought friends and family closer, and seeing their reactions to the renovations has been special.

Conclusion

The dream of homeownership in Australia has become more challenging for younger generations. However, these six young Australians found their own paths to achieve the 1980s dream in 2024. Whether it was buying with family, receiving support from parents, or working tirelessly to save a deposit, they all found a way to enter the property market. While their stories may differ, they serve as a reminder that with determination and creativity, the Australian dream of homeownership is still possible in today’s challenging landscape.

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