Aussies turn off buying homes

Home ownership is slipping down Australians’ list of financial priorities as people opt for paying for their dream lifestyle over their dream home.

More than half of Australians (55 per cent) are listing financial independence as their number one priority, according to Insignia Financial’s Financial Freedom Report.

Financial freedom is defined as having enough passive income (either from a business, investments or savings) to cover your daily expenses and give you “the freedom to achieve your ideal life and no longer need to work as an employee”, according to University of Canberra’s Gianna Thomson.

Australians have also reaffirmed their desires to travel after being cooped up during the pandemic with half of those surveyed saying they prioritise taking regular holidays.

Owning a home is now on par with having a good work/ life balance in terms of priorities with 45 per cent of respondents saying it was their top aspiration.

According to Insignia financial chief executive Renato Mota, the shift in priorities had occurred at a time when the impacts of Covid-19 and increased cost of living pressures had changed people’s shortterm behaviours.

“It’s clear Australians have changed their priorities in life from the traditional dream of owning a home to living their dream lifestyle, which, is under pressure from the current economic climate,” he said.

Facing record high house prices, 63 per cent of Gen Z (aged 13-27) list owning their own home as their top financial priority. More than half (54 per cent) of Generation Y (aged 28-42) say their biggest aspiration is to have a good work/ life balance. Gen X (aged 43-57) and Boomers (aged 58-76) are more likely to be striving for financial independence over owning a home.