Why Millennials are bidding a mortgage goodbye
Australians in their 30s are choosing travel over housing, as home ownership grows increasingly out of reach.
A study of 1,200 Australians aged between 28 and 42 found that leisure spending, not saving for a home deposit, is their top financial goal, with 48 per cent of respondents listing leisure as their number one savings goal.
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“While the Aussie dream of home ownership is far from dead, couples and singles in their 30s are prioritising holidays as their top financial goal,” trading platform moomoo reported.
According to the company, the reason why travel is taking over as a major financial goal is because it feels more within reach for young people.
According to the firm, a three-week holiday to Europe costs around $8,000 “when including flights, accommodation, insurance, and enjoying local delicacies”.
In contrast, a 20 per cent deposit for the median Australian home now costs $220,000 – a staggering 27 times more than the cost of a short overseas holiday.
For many young Aussies, the wait just isn’t worth it.
“Having money locked away (in a mortgage for example) isn’t helping me,” said Emma Lovell, a 36-year-old small business owner based on the Gold Coast.
“Having money to invest in shares, or my business, or holidays is important to me these days,” she said.
According to the survey, there is a high correlation between holding clear financial goals – such as travel – and a feeling of concern about economic trends.
“About 90 per cent of Australian Millennials who have financial goals in 2024 are concerned about inflation and the state of the economy,” moomoo revealed.
With home ownership more of out reach than ever, many Australians in their 30s are exploring alternative pathways to finding financial stability.
Miachel Boyd, a 30-year-old corporate banker from Sydney, is one Millennial who has turned to less conventional options.
“I am investing across property, with some money in an offset account and investments in equities, and did use investing as a way of getting the deposit for my mortgage,” Boyd said.
“During the pandemic and afterwards, I put money in blue chip stocks and index funds to help keep up with the rising property market and inflation,” he explained.
“I was willing to accept this risk to help achieve this outcome.”
According to Boyd, some of his friends are even turning to high-risk investment options, including “speculative stocks and cryptocurrencies” in an attempt to secure their financial futures.
Moomoo stated that investing is increasing focus on savings plans “whether it’s a holiday or a retirement fund”.
