It’s no secret that Australians love to travel. The thing is, we also love to own our own home. Can you do both? It turns out most people can!
There’s this myth that once you take out a mortgage you’re locked down in Australia for good. Or at least for the foreseeable future.
It’s no doubt a major deterrent for young people embarking on home ownership.
But it turns out that’s simply not true: where there’s a will, there’s a way.
Research just out from InsureandGo shows most people (55%) go on at least one overseas holiday within three years of buying their home.
More interesting still, 21% of home owners travel overseas within their first year of buying a home, and 39% within two years.
Then there’s the 10% who are super keen to scratch that travel bug itch and go jet-setting within six months of buying a home.
How do they make it work?
Cheap airfares are a good start.
They’ll send you an email alert when they’ve found a cheap airfare that matches any airports you’d like to depart from and arrive at.
Don’t forget to see Australia!
Rest assured that if the budget is tight, there’s always Australia to explore.
We take it for granted sometimes, but don’t forget that 8.8 million people travel from all across the world to visit our beautiful country each year.
The first few years of your mortgage may serve as the perfect chance to join them in exploring our vast continent.
In fact, that’s exactly what half of all new home owners do within the first year of taking out a mortgage, according to the InsureandGo report.
You don’t have to fly across the country and fork out hundreds of dollars, either. Every state has its own beautiful coastline and national parks, many of which are situated near affordable campgrounds.
The Wealth Effect
Will this behaviour change now that we have seen a decline in Sydney and Melbourne property prices? Why do i pose this question? It’s because of ‘The Wealth Effect’
The wealth effect is a theory suggesting that when the value of someone’s assets such as their home are on the rise because of accelerating property prices, individuals feel more comfortable and confident about their wealth, which will cause them to spend more.
The opposite is also true. If a person experiences a drop in the value of their property, they don’t ‘feel’ as wealthy, and therefore spend less.
Becoming a house-owner these days doesn’t mean you have to become house-bound.
Sure, meeting your mortgage repayments will always come first. But it’s also important to give yourself and your family a much needed holiday every now and then.
By combining clever budgeting, smart saving, good deals, and a dose of discipline, you don’t have to sacrifice travel for home ownership.
To find out more about budgeting with a mortgage, get in touch. We’d love to help out.
If this article interested you and you would like to speak to Pat Casey on the phone, select a time to speak Pat – Financial Planner Sydney.
At Assure Wealth we specialise in helping busy, successful families structure their finances to achieve greater wealth and financial peace of mind.
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