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Owning your own home leads to greater happiness, according to Great Southern Bank.
New research from non-major lender Great Southern Bank has found that 85 per cent of aspirational first-time buyers believe home ownership will make them happier, with figures showing that the majority of Australians who own a home are happier than their renting counterparts.
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Over half (54 per cent) of Australians who owned their own home outright were happy with their living arrangements, compared to 27 per cent of long-term renters, Great Southern Bank found in its latest No Place Like Home Report.
Those who owned a home outright showed a happiness score of 7.4 out of 10, while those with a mortgage reported a score of 6.7. This is compared to a happiness score of 6 for renters.
The cost of living continues to impact Australians but concerns linked to it are on the decline, Great Southern Bank found.
Around 43 per cent of those surveyed were less concerned about current economic conditions, down from 54 per cent last year, indicating that consumers are increasingly managing their finances in line with the higher cost of living.
About 20 per cent of renters and 35 per cent of home owners said they were happy with their finances, a small improvement from last year.
The figures may reflect the fact that “some long-term renters have learnt how to navigate the shifting nature of the rental market … while home owners might’ve capitalised on lowered interest rates before rate rises to pay off more of their mortgage”, Great Southern Bank said.
Women were found to be less happy with their finances than men, possibly due to them more commonly bearing the mental financial load in the household and often carrying out lower-paid jobs, which “can influence how they see their money”, according to Great Southern Bank.
Older home owners are happier
A common thread identified in Great Southern Bank’s research was that older survey respondents tended to be happier with the homes they lived in.
Insights showed a clear link between home happiness and age, with 55 per cent of Baby Boomers stating they were happy with their current living situation, compared to 39 per cent for Gen Xers, 34 per cent for Millennials and 32 per cent for Gen Zers.
Older residents were also happier with their homes, irrespective of ownership status.
Over 80 per cent of Australians declared their home to be their happy place.
The prospect of interest rate cuts next year will give hope to consumers of all ages thinking about buying property.
Around 46 per cent of aspirational buyers are looking to purchase in the next three years, highlighting pent-up demand in the property market.
“While there are challenges to home ownership, this report shows that it also puts you on a path towards a happier future,” Great Southern Bank chief customer officer Megan Keleher said.
“Our purpose as a bank is to help all Australians to own their own home, which is why we provide a lot of support for people on their home ownership journey. I’d urge renters who are thinking about buying to get in contact with a bank or broker to explore their options.”
[Related: Governments should ‘reassess’ home buyer offerings: Lendi Group CEO]
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