Listen up, Australia. Almost 75% of young people believe they’ll never own a home.
Let that sink in.
The Great Aussie Dream has morphed into a nightmare of endless rent and impermanence for an entire generation.
How did we go from “She’ll be right, mate” to “She’ll never own a home”?
Beyond the financial repercussions, think about the emotional and psychological toll this takes. Imagine being in your 20s or 30s, working hard, and yet feeling like you’re running on a treadmill that never stops.
The dream of homeownership, of building a stable future, drifts further away with each passing year, despite your best efforts.
It’s an affront to the Aussie spirit of ‘having a fair go,’ and it’s a reality we at PWF refuse to accept as inevitable.
The Great Australian Dream: Reimagined
Today’s young adults don’t have the luxury of following their parents’ path to homeownership.
A stable job and a savings account are no longer your golden tickets to a brand-new home in the suburbs. Today, you need more; you need your money to work as hard as you do.
But this new landscape isn’t a dead-end; there’s an opportunity. An opportunity to invest wisely, build equity, and use that to break into even the toughest housing markets.
The Great Australian Dream is far from dead; it’s simply undergoing a transformation, thanks to a wave of young, savvy investors who’ve teamed up with PWF.
‘When you need so much money for a deposit and prices are still going up, I think you definitely need to have some kind of plan for the next five, ten years.’
You’re at that life stage where you’ve accumulated some savings. You’ve navigated through your 20s, probably ticked off a few life milestones, and you’re thinking: “What’s the best way to invest this money?”
‘We wanted to buy a property in Queensland because we couldn’t afford to buy something in Sydney and these properties are going to help us buy our dream home. It’s the only way that we can really get ahead in this market because the market is so insane.’
Time to Smash Some Stereotypes
Meet Sydney and Ben. Meet Jayden and Kristina. They were where you are—savings in hand, drowning in doubt. Now?
They’re property owners, building equity and securing their future.
Stereotype 1: Property Investment is for the Rich
You’ve probably heard this one: “Property investment? Oh, you’ve got to have deep pockets for that.” This stereotype paints a picture that property investment is an exclusive club where only the wealthy are welcome. But let’s debunk this with Sydney and Ben.
They candidly shared, “having a brief look at the prices, we thought, oh, we still have a bit more work to do before we can afford that.” Not exactly rolling in dough, are they?
Yet, they’re property investors today. How? They didn’t aim for the penthouse; they aimed for potential—potential for equity growth.
Stereotype 2: Property Investment is for the Older Generation
Ah yes, the “older folks who’ve been around the block”. Many believe property investment is a game best played later in life, but Jayden and Kristina are living evidence to the contrary. Jayden had saved some money at a young age and decided to invest rather than let it sit idle. “It was just kind of sitting in a bank account, not really doing anything” he said. Youth didn’t deter him; it empowered him. Kristina added, “It doesn’t have to be a long-term retirement plan. It can be something to help you get ahead in the short term.”
Stereotype 3: Property Investment is Risky Business
Many young adults, like Sydney before she met Ben, are risk-averse and shy away from property investment out of fear. “I guess it was just the uncertainty of whether that investment would pay off,” Sydney admitted. But their experience with PWF changed their perspective. “No question was a stupid question. It’s nice to have that sort of safety to clarify any issues that we had”.
A data-driven approach and professional guidance made them confident, turning perceived risk into calculated steps toward financial security.
Stereotype 4: Property Doesn’t Pay Off Until Much Later
People often get stuck in one-dimensional thinking when it comes to property investment. Jayden and Kristina’s experience shows that you can see substantial returns sooner than you think. “We did our most recent review recently, and it was $200,000 each. Half a million total roughly that I’ve gained equity in both those properties“.
This gain wasn’t over decades; it was in just a few years. With the right guidance and choices, property investment can indeed be a short- to medium-term strategy, not just a long-term one.
The Power of Data: Making Informed Choices
You’ve heard it before: Knowledge is power. But here at PWF, we take it a step further—Data is power:
Trust in Numbers: “I was very comforted by the fact that you had the data to support the growth that you were showing us,” says Kristina. No ‘pie in the sky’ promises here. We show you real numbers, growth trends, and solid projections.
Regular Reviews: “So one of the benefits of working with you guys at PWF, we get to do that review as well. You do a review of our properties and see where they’re at, how they’re tracking, and if there’s any improvements or adjustments we can make to the loan to, say, reduce interest rates.”. Our regular reviews give you a snapshot of your progress, backed by data, and it’s not just about looking back—it’s about optimising for the future.
Solid Advice: “If I had done that a few years ago, then that property would have probably built up quite a bit of equity by now“. Our data helps you tailor your investment to meet your short-term and long-term goals. Whether it’s buying your dream home or setting up a retirement nest egg, data lights the way.
Table: Data Types and Their Utility in Decision Making
| Type of Data | Utility in Short-term Decisions | Utility in Long-term Decisions |
|---|---|---|
|
Population Projections |
Gauge immediate demand |
Project future value |
|
Housing Types |
Tailor investment choice |
Diversify investment portfolio |
|
Infrastructure Plans |
Estimate value increase |
Plan for long-term appreciation |
|
Rental Yields |
Evaluate immediate returns |
Assess potential for stable income |
|
ROI (Return on Investment) |
Quantify the profitability of the investment |
Evaluate the overall financial performance |
|
Vacancy Rates |
Understand rental market demand |
Assess long-term rental income potential |
|
Interest Rates |
Calculate affordability and financing options |
Plan for refinancing options |
|
Economic Indicators |
Assess job market, consumer confidence, etc. for immediate demand |
Gauge the long-term economic stability of an area |
|
Location & Neighbourhood Amenities |
Gauge tenant appeal and potential for short-term gains |
Assess potential for property value appreciation |
The Importance of Regional Planning for Young Investors
In our previous blog, we delved into the South-East Queensland Regional Plan 2023. For young investors like our two couples, who are at the beginning of their investment journey, understanding the nuances of regional plans can be incredibly advantageous.
Key Factors Outlined in Regional Plans
- Future Infrastructure Projects: Knowing where new roads, public transport hubs, or utilities can help investors anticipate areas that will increase in value.
- Population Growth: Areas projected for significant population growth will likely experience increased housing demand, making them ripe for investment.
- Housing Demand: The plan provides data on the types of housing that will be in demand, helping investors tailor their investment strategies.
How Regional Planning Influences Property Values
- Economic Development: Planned commercial projects can boost employment, thereby increasing housing demand and property values.
- Urban Innovation: Investments in technology and sustainability can make an area more attractive to potential residents.
- Resource Allocation: Knowing where governmental resources will be allocated can indicate future property hotspots.
Table: How Regional Factors Influence Property Values
| Factor | Immediate Impact | Long-term Impact |
|---|---|---|
|
Infrastructure Projects |
Increase in demand |
Sustained value growth |
|
Population Growth |
Higher rental yields |
Capital appreciation |
|
Housing Demand |
Tailored investment |
Lower risk |
By understanding these key indicators, young investors can make informed decisions on where to invest for maximum returns and minimised risks.
Overcoming Fears and Uncertainties
Let’s face it: Investing in property is scary, especially if it’s your first time. Sydney and Ben were no different.
Fear of the Unknown: “I guess it was just the uncertainty of whether that investment would pay off“. The fear of failure, of losing your hard-earned money, can be paralysing.
Knowledge trumps fear: “If I had a bit more knowledge about the whole process, then it may have changed my decision a little bit“. At PWF, we arm you with the knowledge you need to move from fear to confidence.
Two Brains, Better Than One: “With the both of us having two brains together, two incomes together as well, that’s definitely helped a lot“. PWF acts as that third brain, guiding you, informing you, and empowering you every step of the way.
No Lifestyle Sacrifices: “We haven’t really had to change many lifestyle factors at all“. With the right planning and guidance, you don’t have to give up your way of life to invest in your future.
YOUR TURN
So, where does that leave you? Are you going to be part of the 74% who think they’ll never own a home? Or are you ready to be like Jayden and Kristina, Sydney and Ben—real people who took real steps to seize their financial future?
Investing in property doesn’t have to be intimidating. With the right guidance and a data-driven approach, you can turn your savings into a powerful tool for financial growth.
Whether you’re aiming for a dream home or a comfortable retirement, starting young gives you the edge. So why wait? Your future self will thank you.
It’s often a mere nudge or a read on our blog that can transform your financial trajectory.
Want more on how data can help you? Check out our eBooks section for in-depth guides.
For more success stories that could be yours, have a look at our Success Stories page.