Buying property is a big responsibility
The housing market has been flip-flopping more than a fish out of water recently. Everything the world has gone through during nearly two years of the pandemic has made things uncertain. However, even before Covid house sales were on the decline — but why?
The Freedom Aspect
Once, it was very common to go down the traditional route of marriage, career and work until you retired. This however is no longer what most people want nowadays. Instead, we want the freedom to travel and be our own bosses. There is so much culture, food and experiences out there that people want to experience. With social media playing a big part in showcasing all of the incredible things available from around the world, people now want to travel for longer periods. We also want to explore living abroad — although this option has become more difficult given the post-pandemic travel restrictions.
It’s Just Too Expensive
It wasn’t overly difficult years ago to be able to afford to buy a house with only one income. These days, there are so many hoops to get through. Incredibly, huge deposits are needed as well as very high earnings which a lot of people simply don’t have. The ongoing debate is that people who rent long term end up paying more in a month than if they were to have a mortgage, as the payment would be smaller. But having to make a large deposit in one lump sum is just not practical for many and unattainable for most. People feel that being able to afford rent over a long period of time should be evidence enough that you are able to pay a mortgage with a lower downpayment.
Not Coupled Up?
In 1967, 80 per cent of people lived with their significant other. Now, less than 60 per cent of people in the age bracket 25 to 34 live with their significant other. Life is getting too expensive and more of us are living at home for longer. It is not unusual for a late 20 something to still be living at home with their parents. Since people aren’t jumping straight into marriage and living together, it has affected our property buying preferences. What’s more, many of us prefer to focus on other goals such as career building, travelling and having a range of experiences. The world is a very different place from what it used to be and people’s needs and priorities have changed considerably.
The housing market will never go away, of course. People will always need a place to live. From students to travellers, to young people, a roof over the head remains a priority. Those looking to rent or buy property should consider their local real estate experts, such as compass real estate for guidance on finding something that’s just right for them.
