Invest
Should we give up on the Australian dream?
Home ownership may not be in the future for many Australians, but that’s driven by choice as well as financial reality, the CEO of a fractional investment service has said.
Should we give up on the Australian dream?
Home ownership may not be in the future for many Australians, but that’s driven by choice as well as financial reality, the CEO of a fractional investment service has said.
According to CoVESTA’s Daniel Noble, the conversation around what Australians want from their homes has returned to utility and choice.
Speaking to Nest Egg, he said buying property won’t be an option for a lot of Australians today, “at least in the capital cities”, due to the sheer financial difficulty.
“The drive for fractional investment isn’t driven by purely a pragmatic need; it's also a cultural and social acceptance of not owning something outright,” Mr Noble said.
“You see that with holiday houses and Airbnb and car shares and the rest of them. They don't need to own stuff to get the utility.”
The Australian approach to home-ownership is a product of post-war capitalism, he argued.
“What we're seeing now is this kind of move back to utility of a home and not being tied into traditional long-term norms of buying a place. It's not because they want it, it's just because it's a reality that we have to navigate,” Mr Noble said.
He said people who rent or travel still want to invest in property, but might not want to or have the ability to put all their savings in. In this instance, he argued fractional investment is a way to access that exposure without losing their lifestyle.
As cities like Sydney and Melbourne reach maximum density, it’s likely to become more prevalent, Mr Noble added.
The problem is for essential workers like teachers, nurses and police officers who can’t make it in with a property purchase.
The Sydney population centre moved east for the first time in more than 200 years last year as high-rise apartment construction took effect, Mr Noble noted.
“Some people go, ‘That's it. I just cannot move further away from infrastructure and services and work’,” he said.
He recounted the story of a 36-year-old nurse who was still house-sharing because of the realities of shift-work.
If a nurse finishes a shift at 4:30am, they’re not going to want to travel for an hour to a home they can afford, Mr Noble explained. The nurse will want to sleep.
“But here's the thing, you can imagine that if you had people who are police or nurses or teachers who go, ‘Look, I've saved $150,000 or $100,000 and I want to buy within a year’, they can put their $50,000 in a year to invest in properties that are going to pay a return, but also allowing them to live close to where their service is provided,” he said.
“It's a great mix of bringing different investment objectives but solving major problems together.”
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
Property
More than 1 in 3 Aussie properties are cheaper to buy than rent
Having a mortgage is even more likely to be cheaper than renting than it was pre-pandemic, new research has revealed. ...Read more
Property
How will the moratorium on evictions impact landlords and tenants?
The NSW government has announced a 60-day moratorium on evictions, with landlords gifted incentives to reduce the burden on COVID-19-affected tenants. ...Read more
Property
Young renters cry out against ‘lack of respect’ in rental market
Young Australians have expressed dismay over the perceived discrimination within the rental market as the wealth divide forces them into long-term renting. ...Read more
Property
Note investing: A way into the property market for younger Australians?
As the traditional route into the housing market becomes more difficult, could unorthodox alternatives like note investing bridge the gap? ...Read more
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
Property
More than 1 in 3 Aussie properties are cheaper to buy than rent
Having a mortgage is even more likely to be cheaper than renting than it was pre-pandemic, new research has revealed. ...Read more
Property
How will the moratorium on evictions impact landlords and tenants?
The NSW government has announced a 60-day moratorium on evictions, with landlords gifted incentives to reduce the burden on COVID-19-affected tenants. ...Read more
Property
Young renters cry out against ‘lack of respect’ in rental market
Young Australians have expressed dismay over the perceived discrimination within the rental market as the wealth divide forces them into long-term renting. ...Read more
Property
Note investing: A way into the property market for younger Australians?
As the traditional route into the housing market becomes more difficult, could unorthodox alternatives like note investing bridge the gap? ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
