When it comes to saving for a home, parents have harassed their children for years to reduce the luxuries to save a deposit.
But more and more millennials are raising their nose at the "Australian dream" and spending their hard-earned money on experiences – from overseas travel, to luxury items and the latest and greatest technologies – rather than a mortgage.
At 30, Druvi De Silva was on track to achieve his home storage goal. With $ 30k in the bank, which he had saved thanks to smart moves in the stock market and social sacrifices, its priorities only changed in mid-2017.
Mr. De Silva no longer wanted to follow life as a "safe decision" and buy a house. Rather, he wanted a challenge – and an experience that would change his life forever.
"The main reason I made the decision to travel was because it was much more difficult for me to buy a house," he told news.com.au for Travel Confessions of Cash, a series of stories that look at how Australians save and spend their money on vacation.
"The sure decision is what parents often tell you to do … have a good job, buy a house and settle down … for me, I didn't want that."
Mr. De Silva has decided to leave for a trip abroad in the Americas, venturing north, center and south over the course of 10 months.
It was a journey that has not completely overlooked – opting to spend money eating most nights and paying for lodging alone – but it was a decision that Mr. De Silva said that the more young Australians should consider rather than give in under the pressure of being the first bought home.
"When I made the decision to quit my job and spend my savings on a vacation, I couldn't get one person to say that I was doing the wrong thing," he said.
"In fact, everyone was extremely helpful and said it was a courageous request to make.
"I thought people would say," Think about what you're doing … but the family was really helpful too. "
In the final phase of the Australian elections, the Coalition announced a first home loan deposit plan to help young buyers try to enter the real estate market.
The scheme, announced on Sunday, essentially means that the first home buyers will no longer need to save for a 20% deposit, and will instead only need 5% with the Commonwealth that makes the difference.
The scheme will be available for single people who will earn less than $ 125,000, and couples will earn a combined salary of less than $ 200,000, a commitment that the Work equaled over the weekend.
In a research released at the beginning of this year and before the announcement of the Sunday Coalition scheme, Canstar's analysis revealed that those hoping to buy a home at a median price of worth about $ 1 million must pay an individual salary of $ 160.611, if the borrower has paid a deposit of 20% in advance and avoided paying the mortgage insurance.
This is equivalent to earning a pediatrician's salary package ($ 179.250) or a MP ($ 184.840) just to avoid mortgage stress, according to 2015/16 figures from the Australian Statistical Office.
On Tuesday, Channel 7's Samantha Armytage and David Koch questioned how young Australians still went overseas and bought "leather sofas" instead of saving their money.
In a Sunrise Discussion with social commentator Jane Caro and television presenter Seven, Ben Davis, discussed new research showing that 43% of Australians aged 20 to 24 still live with their parents for financial reasons.
Ms. Caro discussed how the younger generation today needs about a decade to save on a home storage, while previous generations only needed six years to save and buy a home.
It was at this point that Koch entered and commented that the young Australians were still able to afford certain lifestyle luxuries, despite not moving from home.
Intrepid's Annual Travel Index – which examines the latest trends and insights in the field of adventure travel with Australian tourists – Professor Joseph Cheer of the Wakayama University Center for Tourism Research in Japan said that The age of travel is changing, with consumers giving more value experiences than materialistic objects.
"This is the era of travel, in which consumer changes see the hoarding of material goods that are increasingly making way for the desire to have extraordinary life experiences, especially through travel," he said. Professor Cheer.
Now on the 31st, Mr. De Silva, who has been living with his parents since he returned home from his travels, said that many of his friends followed the path of buying a home and settling down with their family , however it does not seem that his put it in some way.
"I'd be lying if I didn't think so, damn it, I could have bought a house (if I didn't go overseas), but with this thought comes every experience I have acquired," he said. "And with that, I don't have an ounce of regret for what I did.
"My friends who own homes have families and so it makes sense for their situation (to buy a house) while it's not what I need or want at the present time.
"I will always recommend people to do what I did and travel. It is something that everyone should think about trying … because a home does not give you that experience."
Have you made a financial decision similar to Mr De Silva? Maybe you did a vacation that changes your life? Tell me about this: email@example.com
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