If you are actively saving for a home, or already own a home or are building an investment portfolio, you are more likely to have a) complete happiness, b) feel that you are controlling your life, c) make healthy choices and d) believe you are in excellent health. How cool are you.
In August 2015 RaboDirect surveyed 2500 Australians aged 18-65 as part of their annual Financial Health Barometer. A Key finding from the survey was that the ‘wellbeing of mortgage holders and those who already own their own homes tends to be substantially higher than those who have no plans to buy a house’. Lets look a little closer at some of the questions and the responses.
Firstly there were two groups, home owners shown in blue and non-home owners in red. Looking at the graph we can make some very interesting conclusions. When asked if they were completely happy with life, 50% of homeowners said yes, whilst only 29% of non-owners said yes.
When asked if they felt healthy, 44% of homeowners said they were in excellent health, but only 27% of non-owners felt the same. This might be because 25% of homeowners go to a gym, compared with only 10% of non-owners.
Now we know that property ownership is a great pathway to wealth, just ask anybody who has owned property in Sydney recently, but it would appear that the wealth created offers life choices. 53% of home owners said they felt in control of their lives whilst only 29% of non-owners could say the same.
This could simply be because renting doesn’t allow you to put up pictures, but I believe it has more to do with freedom of choices. You see its not the money that makes you happy, its the freedom to choose your life that makes you happy.
Putting a plan into action and seeing results, creates a sense of achievement, and what’s most amazing is that it comes from a passive wealth stream. Your properties grow in value whether you’re working a 60hr week or sitting on a beach in Bali.
“It’s clear people who are in the property market are more inclined to pursue activities to boost their health and fitness, and overall feel happier with their lives,” Rabobank Australia and New Zealand Group Head of Market Research Glenn Wealands said.
“There’s a lot of commentary in the market at the moment around the booming property market and the impact it is having on Australians. These results indicate that having a savings goal and plan around items like home ownership can bring happiness.”
We know that when it comes to setting goals and putting plans in place, reaching milestones feels great and pushes us on to hit the next one. So it comes as no surprise when respondents are asked about their finances, those who intend to buy property within the next three years are the most positive about their personal finances.
RaboDirect reports, of this group, ‘53 per cent say they expect their personal finances to be better off in 12 months. In addition, 46 per cent say they are saving more now than a year ago. Those who are not intending to buy a property have the lowest expectations about their finances, with just 28 per cent of this group expecting their financial position to have improved in a year’s time.’
“Our research this year clearly shows that Australians who are motivated in all aspects of life from health and fitness, getting out to watch a sports match or walking their dog, are generally more happy and financially in control,” Mr Wealands said.
The simple lesson here is to get motivated about your money, get pro-active about your prosperity, and allow home ownership to assist you with your overall well-being and happiness.
“The Financial Health Barometer research aims to arm Aussies with insights into how they can save more effectively and the trends that are potentially affecting their savings trajectory.”- RaboDirect
Where we can help.
Thinking of purchasing an investment? Talk to us first to ensure you are using the most tax effective vehicle, maximising your return, but also leverage our relationships and information networks to make the best decisions moving forward.
Steve Purcell is located at our Sydney office and is the General Manager of our property division, FPS Property Pty Ltd. He holds a PSBA License, is a licensed Auctioneer and holds a Masters Degree in Business. Steve brings an extraordinary depth of hands on experience to the role including twenty years in commercial and residential construction, followed by ten years in residential Real Estate sales and property development. This unique blend enables Steve to advise on selected developers, to ensure they are providing functional, quality assets with high quality finishes to mitigate potential sector risks to our clients. Become a client of Stevens and get access to RP Data suburb reports, market valuations and advocacy options.
Steve Purcell can be contacted on 1300 925 081 or by email on steven.purcell@cxcfp.com.au
Disclaimer: The information, analysis, provocations, suggestions and opinions contained within this email are provided by FPS Property Pty Ltd (ACN: 169 144 361) under Property, Stock and Business Agents Corporate Lic # 10022396. You should consider whether the information or advice contained in this email is appropriate to you having regard to these factors before acting on it. You should seek personalised advice from your financial adviser and your accountant before making any financial decision in relation to matters discussed in this email.
