There is a common belief among many (mainly older generations) that the lifestyles of people today do no match the frugality required to enter the home owner market. Put simply, ‘if they stopped wasting their money on smashed avocado toast, highly complicated coffees, and Ubering everywhere, they might be able to scrummage together enough for a deposit on a house’. But is treating yourself in today’s financial climate really costing you home ownership? Swoosh believes that there are two sides of the story, and delivers the conversation below.

Rent now, buy…when?

Everyone needs a roof over their head. No questions. The problem with some people is the quality of that roof, as well as the walls, floors and everything else it’s covering. Although they find it admirable that you are no longer scrounging off your parents and the honest taxpayer, if you aren’t living in the cheapest place you can find, scurrying away your pennies until you can finally lay down a hefty deposit of your own, then you are a fool stuck paying off someone else’s mortgage for the rest of your life. Why live comfortable now when you can live secure later?

But there are people who do not share the same values. Home ownership simply isn’t their goal. They want to live in the moment, live in a place they enjoy, surrounded by things that makes their lives memorable. If that means they will end up owning less than their peers down the line, they can stomach that, as they place value on experiences over financial wealth.

And to live that way isn’t negating the potential for home ownership. It isn’t a race where if you haven’t got your name on a home application by a certain age, you lose at life. As long as anyone isn’t living vastly beyond their means (a financial practise ill-advised on its own) then with a steady amount of hard work and long-term planning, there is no reason home ownership should be unobtainable.

Travelling and socialising

Taking time to explore the world and finding yourself along the way has been a time honoured tradition. And a having a healthy social life, with plenty of meaningful relationships and happy memories shared (and perhaps the odd smashed avocado on toast with an overly complicated coffee at a café you arrived at via Uber) is proven to help your mental health. So why is it whenever we consider our finances, an adventure to a foreign land, or doing something exciting with our friends, feels as though we are stealing away a piece of our future security with every dollar spent?

The future is so uncertain, our innate sensibilities warn us to behave industriously and stock up on resources before a bad winter gets the better of us. The solution? Make sure you have enough in reserves, and if you do, free yourself up to enjoy summer as much as you can.

Once you do have a home it will be better, right?

Say you did choose an entirely frugal life, making a multitude of sacrifices along the way in order to get your hands on the keys of your first home. Surely that is when the fun begins, right?

Not exactly. Unless you managed to save hundreds of thousands of dollars and are in no need of a bank loan, you are looking at another 25 or 30 years of loan (and interest) repayments. And unlike when you were renting, if you miss a few payments, you won’t just be evicted – the bank will come and take your property from you. Short of being the inventor of the next ‘billion-dollar’ app idea and relocating to Silicon Valley, you might not start really living until your 40s, 50s, or 60s.

Personal loans working towards your goals

The golden rule is to essentially practise moderation on both sides of the conversation to live a well-rounded life (skewed to your own personal goals, of course). And if you are in need of help consolidating debts in order to save, or have your savings tied up and feel you deserve to splash out, Swoosh offer excellent personal loans that are perfect for both situations. With fixed term repayment schedules, they are easy to keep an eye on, but with amounts of $2100 – $5000, they can be put to achieve much. To learn more, contact Swoosh today.