Aussies have abandoned the “Australian dream” of home ownership in favor of building wealth, according to new research from Finder.
Achieving financial independence ranked as the most common answer for how respondents defined success, in addition to having a family, good mental health and home ownership.
46 percent of respondents to this survey said it is important to have enough money to do what they want, while only 42 percent said they own a house.
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Owning a home is no longer how most Australians define success. Photo: NCA NewsWire/Max Mason-Hubers
Finder money expert Richard Whitten said that for many, financial independence is no longer a luxury, but creates financial breathing room.
“The story has completely changed,” he said.
“The Aussie dream isn’t really about having a place, it’s about the flexibility of living life on your own terms.”
The survey found a big difference in how Aussies define success.
For Generations X and Y, financial freedom was very important, something Mr Whitten said linked to the general lifestyle goals of these age groups.
“For Gen Y, who are facing mortgage stress, and Gen X, who are trying to keep up with retirement, money means escaping the constant worries of everyday life,” he said.
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There are many differences emerging in how Australians now define success. Source: Find
Two in five Gen Xers (38 percent) see being debt-free as a success, compared to one in five (21 percent) of Gen Z.
While 52 percent of Baby Boomers said owning a home is important, only 35 percent of Gen Z respondents thought the same.
For Boomers, owning a home and having a family are the most important aspects of a successful life, while Gen Z prefers financial independence (54 percent) and having a fulfilling career (42 percent).
The results show that many young Australians are interested in building wealth through investment, rather than chasing their forever home.
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Forensic expert Richard Whitten. Image: Provided
Sydney-based Vignesh Rajashekar, 27, started investing in property at the age of 23.
Mr Rajashekar, who works in construction, has since built a three-property portfolio now worth about $2m with the help of InvestorKit founder Arjun Paliwal.
“You probably don’t have many options left,” Mr Rajashekar said of Sydney’s expensive housing market.
“Especially in Sydney, when the prices keep going up, you are almost left with no choice because when you buy a property, you just spend more where it is dangerous when you look at the buildings and places you want to live.”
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Vignesh Rajashekar started investing in real estate at the age of 23. Photo: Justin Lloyd
Mr Rajashekar has invested in private homes in Adelaide, SA, Bundaberg, QLD and Wodonga, VIC, all purchased for $500,000-600,000.
“I think the dream is to earn enough money to idle until you don’t need to work full time,” he said. “Obviously that’s a long-term thing.”
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THE AUSTRALIA DREAM: HOW AUSSIES DEFINE SUCCESS
| What is important to your definition of success? (Choose the top 3) | Overall response |
| Achieving financial independence / having enough money to do what I want | 46% |
| Having your own home | 42% |
| Having a family / raising children | 41% |
| Being debt free | 31% |
| Having a job or a job that you find fulfilling | 28% |
| Having good mental health | 28% |
| Getting married | 15% |
| Being able to retire early | 12% |
| To make your family or community proud | 11% |
| Using your skills and resources to help others | 11% |
| Following my religion or spiritual beliefs | 8% |
| Other | 2% |
Source: Find
