Aussies have abandoned the “Australian Dream” of owning a home in favour of building wealth, according to new research from Finder.
Achieving financial independence ranked as the most common answer to how respondents define success, above having a family, good mental health and home ownership.
Forty-six per cent of the survey’s respondents said having enough money to do what they want was important, while only 42 per cent claimed owning a home was.
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Owning a home is no longer how a majority of Australians define success. Picture: NCA NewsWire/Max Mason-Hubers
Finder money expert Richard Whitten said that for many, financial independence was no longer about luxury, but creating financial breathing room.
“The narrative has completely flipped,” he said.
“The Aussie dream is not necessarily owning a place, but having the flexibility to live on your own terms.”
The survey found a number of generational differences in how Aussies defined success.
For Generations X and Y, financial freedom was most important, something Mr Whitten said was linked to common life goals for these age groups.
“For Gen Y, who are wrestling with peak mortgage pressure, and Gen X, who are trying to get ahead of retirement, money means escaping the relentless daily worry,” he said.
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There are a number of generational differences in how Australians now define success. Source: Finder
Two in five Gen Xers (38 per cent) see having no debt as success, compared to just one in five (21 per cent) in Gen Z.
While 52 per cent of Baby Boomers said owning a home was important, only 35 per cent of Gen Z respondents thought the same way.
For Boomers, owning a home and having a family are the most important aspects of a successful life, while Gen Z prefer financial independence (54 per cent) and having a fulfilling job (42 per cent).
The results show that more young Australians are interested in building wealth through investments, rather than chasing their forever home.
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Finder money expert Richard Whitten. Picture: Supplied
Sydney’s Vignesh Rajashekar, 27, began investing in property at the age of 23.
Mr Rajashekar, who works in construction, has since built a three-property portfolio now worth around $2m with the assistance of InvestorKit founder Arjun Paliwal.
“It’s almost that you’re not left with many options,” Mr Rajashekar said of Sydney’s pricey housing market.
“Especially in Sydney, where prices keep going up, you’re almost left with no option because if you’re buying a property, you’re just leveraging yourself way too much where it’s a risk when you’re looking at properties and areas you want to live in.”
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Vignesh Rajashekar began investing in property at 23. Picture: Justin Lloyd
Mr Rajashekar has invested in freestanding homes in Adelaide, SA, Bundaberg, QLD and Wodonga, VIC, all of which were purchased in the $500,000-600,000 range.
“I guess the dream is to earn enough passive income to the point where you don’t need to work full time,” he said. “That’s obviously a long term kind of thing.”
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THE AUSTRALIAN DREAM: HOW AUSSIES DEFINE SUCCESS
| What is important to your definition of success? (Choose top 3) | Overall response |
| Achieving financial independence / having enough money to do what I want | 46% |
| Owning your own home | 42% |
| Having a family / raising children | 41% |
| Having no debt | 31% |
| Having a job or career you find fulfilling | 28% |
| Having good mental health | 28% |
| Being married | 15% |
| Being able to retire early | 12% |
| Making your family or community proud | 11% |
| Using your talents and resources to help others | 11% |
| Following my religion or spiritual beliefs | 8% |
| Other | 2% |
Source: Finder
