Aussie couple regrets buying a house: Two Broke Chicks

An Aussie woman has shared the struggles she and her partner have faced after purchasing a house — sparking a major debate online in which many Aussies shared that they had regretted becoming homeowners.

Sharing with the podcast Two Broke Chicks, the woman explained purchasing a property earlier this year was the “worst investment of 2023”, as the dream of homeownership quickly turned into a nightmare.

The woman was set about calling out anyone who “glamorises” owning their own home and thinks “its all wonderful and amazing once you got it”.

“Buying a house was a bad investment. My partner and I couldn’t afford a house close to the city so we bought way out in the suburbs,” she said.

“I’ve just had to start working a second job at a local pub a few nights a week due to rising interest rates and needing to afford mortgage payments.

“House maintenance is expensive — no more calling up your landlord, that’s your problem now.”

The woman explained she works as a marketing manager with a decent salary, but even that is not enough to cover the rising costs.

The latest Finder research revealed the minimum household income required to afford the mortgage average Australian house is $182,000, while those owning units need about $130,000.

“Getting into the city to do anything is expensive and time consuming,” the woman continued.

“The commute takes about two to three hours a day…Travel is not looking like a viable option for me over the next few years just due to the cost of mortgage repayments.

“I know renting isn’t all sunshine and daisies either, but just wanted to be real.”

Listeners of the podcast took to social media to express their views, with some agreeing with the woman and others saying the situation was a great “reality check” for the couple.

“Honestly owning a house has been the worst thing for my mental health,” one person shared.

“Prior to buying, I had money for anything, constantly travelled, shopping sprees, brand new car etc — was not under any financial pressure whatsoever since buying however sooo much of my money goes on the house.”

“I’ve done some renovations which has been upwards of $60k I used to dream of having $30k to blow on a trip overseas,” they continued.

“I know it’s like boo hoo you own a house privileged people problems but honestly wish I waited until I was older to buy, spending my early 20s being responsible and putting majority of my money I work so hard for into the house has been depressing.”

“This video hits hard to the soul, buying a house has been the biggest life lesson and puts so much into perspective!” shared another.

A third said: “I regret buying a home. I could have done so much with that money, everyone lies — a house is a liability.”

Earlier this month, the Reserve Bank of Australia (RBA) chose to pause interest rates at the final meeting of 2023 amid signs of inflation slowing down, with the inflation rate now sitting at 5.4 per cent.

It followed last month’s decision, which saw the RBA increase the cash rate to 4.35 per cent in a shock to Aussie households.

In the following two years, the rate has skyrocketed by 425 basis points with 13 interest rate rises in 18 months.

The rate is now at its highest level since 2011 at 4.35 per cent.

Some people weren’t as understanding to the struggles the couple face and have instead urged them to get a “reality check”.

“Welcome to life” one person wrote, as another chimed in: “Buying property is never a bad investment your convenience is.”

A woman wrote: “It was a bad investment for them in that situation. Buying a house will rarely be a bad investment overall. It gets you in the property game which then can work to your advantage depending on your goals.”

“At least they’re not paying someone else’s mortgage and not loosing money there..” agreed another.

While one added: “Mortgage payments, house and land maintenance, council rates and all those little extra in between… Expensive but it has definitely taught me to live within my means.”

A leading chief economist has told Sky News Australia the Reserve Bank of Australia could drop interest rates as soon as next June quarter.

AMP Capital’s chief economist Shane Oliver said the US Federal Reserve’s decision to stop raising and start looking at lowering rates next year would mean Australia, Britain and Europe would likely follow suit.

“It’s all heading in the right direction. I think one of the big themes through 2023 was disinflation we had inflation peak in 2022,” Mr Oliver said.

“Consequently the US Fed is leading the way. They saw their inflation rate peak earlier than the other countries they’ve seen a longer period of decline so it’s understandable that they’re now pivoting towards rate cuts.”

“Australia, like the British, are a bit sceptical that inflation is going to come down, still a bit concerned that it’s still too high so the bias is still toward hiking but I think as we go through the next few months it’ll become evident in Australia that inflation is continuing to fall,” he continued.

“Consequently the RBA probably won’t have to raise interest rates and the next move will be down but not until the June quarter or probably after maybe the September quarter.”

Read related topics:Cost Of Living

Leave a Comment