In: Lending News

With the rush of the holiday season behind us and the new year upon us, financial goal-setting is in full swing on both sides of the Tasman. And as studies show, home ownership is still high on the agenda for everyday Australians and Kiwis.

The “quarter-acre dream” is alive and well

New Zealanders continue to see home ownership as a tried-and-true way to boost their wealth and secure their family’s future.

New research from the University of Auckland has confirmed that, “despite the increasing difficulties of home ownership faced by young people and those on low incomes, aspirations for home ownership, as expressed in the idea of the Kiwi Dream, remain powerful in cultural terms in Aotearoa in New Zealand.”

According to the majority of people surveyed, owning a home isn’t just about economic benefits. It can also bestow a sense of worth, achievement and – among immigrants – connectedness to a new country. Importantly, many first-home buyers are willing to find creative ways to get on the ladder, for example renting out a room or a granny flat to fund part of their mortgage repayments.

There are barriers to overcome

A new study by ME Bank found that saving for a holiday, a car or retirement are among top resolutions for Australians in 2020, with nearly one in five Aussies  also planning to buy property. However, only one in four people surveyed believes they are “very likely” to achieve their financial goals. And a combination of low incomes and rising living expenses is the cause.

In a recent polling conducted by JWS Research, housing affordability turned out to be a top-three concern for most Australians, second only to cost of living and ‘health and ageing’. But despite reduced affordability and falling home ownership rates, 80 per cent of Australians believe that owning a home can boost financial security and 92 per cent of renters aspire to own.

The “Great Australian Dream” remains embedded in the collective psyche as a key, life-changing goal to pursue.

An investment worth protecting

The bushfire emergency highlighted an increasing need for Australians to secure their properties. According to a 2013 study, 40 per cent of Australian properties are at risk of being under-insured, leaving home owners exposed to potential losses in case of natural disasters.

Under-insurance is a New Zealand issue as well. The Lloyds of London Insurance Risk Index Report recently found that the country has the world’s second-highest annual losses expected from natural catastrophes.

“It’s possible that people are under-estimating the cost to replace their assets, which could leave them vulnerable should another major disaster strike,” said Tim Grafton, chief executive, Insurance Council of New Zealand. “We recommend everyone checks their current cover to ensure it’s fit for purpose and will give you what you need in the event of a total loss.”

The importance of talking to an expert

Whether your clients need a mortgage to make their home ownership dream a reality, or are looking for the right level of Personal Insurance to protect their dream over time, talking with an adviser can help them make an informed decision.

Our Mortgage Link advisers are committed to assisting more and more New Zealanders with their home loan needs.

 

To get in touch with the team at Mortgage Link, please contact:

Josh Bronkhorst
[email protected]
021 835 506

 

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.