In these unprecedented times, with such a heightened focus on the need for all of us to be more mindful of our personal wellbeing, a special report has identified home ownership as the most important thing affecting a person’s perceived level of ‘financial wellness’.

There are numerous definitions floating around, but the concept of ‘financial wellness’ is essentially how effectively we manage the financial aspects of our life and, as a result, the impact this has on our personal wellbeing.

One in two Australians experience financial stress

The report reveals that 46% (almost one in two) of Australians experience some kind of financial stress. Using a formulated index (where 6.4 out of 10 represents “average” financial wellness and a score below 5 indicates significant levels of financial stress), those who own their own home scored 7.9 – the highest average score of any variables produced by the report.  

Those looking to buy their first home received an average index of 6.7, which the report said reflects the optimism of looking to buy with the safety net of a deposit. Conversely, people renting returned a much lower financial wellness score than homeowners of 5.1.

Almost 50% of renters feel the strain

Understandably, 6 per cent of those who own their home outright reported feeling stressed, but this jumped to 48 per cent for renters.

In terms of financial goals, almost 30 per cent of respondents stated that buying a home was a goal for them, while almost 40 per cent listed repaying their mortgage as their number-one priority.

My Expert® Founder and CEO, Brett Wadelton, says the findings are significant as they highlight the gap in wellness and stress when comparing homeowners and renters.

“There’s a reason why our aim has always been to take the emotional drain out of making decisions around property transactions, because we see first-hand how stressful the pursuit of purchasing a home can be – especially for first home buyers trying to break out of the rental market,” says Brett.

Buying your first home can add pressure and uncertainty

“Buying a home is the biggest purchase most of us will make in our lives. This makes it a time of great anticipation, which can often result in high levels of pressure and uncertainty for renters trying to save to buy their first home.”

He continues that the report also draws a line under the crucial role the government must play in assisting Australians to become homeowners.

“With the property market so hot, the government needs to do all it can to keep incentives in place to assist first home buyers so that the great Australian dream remains achievable,” says Brett.

A smooth and stress-free home buying journey

“At the same time, we will continue to educate and support clients through the home buying process – assisting them with home loans, conveyancing and personal insurance – and work with our lenders to ensure their home buying journey is as smooth and stress-free as possible.”

If you’re looking to buy your first home, a conversation with one of our Home Loan Experts will let you know if you are in a financial position to apply for a loan, or what you need to do to achieve that goal.

Report source: Mortgage Business July 29, 2021.


Disclaimer: The information provided in this blog is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this blog you should consider the appropriateness of the information having regard to your objectives, financial situation and needs, and it is important for you to consider these matters and to seek appropriate legal, tax and financial advice.

Pinnacle Advisory Pty Ltd trading as My Expert® Wealth ABN 36 638 505 950 is a corporate Authorised Rep of MG Wealth Advisors Pty Ltd AFSL n. 496089 ABN 20 617 338 137.