Is the “Forever Home” a Myth?

“Starter Home” and “Forever Home” are frequently used terms in the real estate industry. The question is, are they still relevant nowadays or have they become mere marketing gimmicks, set out to trick people into ever-increasing consumerism?

Back in the days it wasn’t uncommon to live and grow old in the same house you bought as a young adult. These days? Not so much.

“Forever Home is not a myth. I’ve had six so far.”

– random Internet user (thanks for the laughs!)

Truth is that any minor change in circumstances can make you decide that your previously “perfect” home is no longer right for your family. It could be a surprise pregnancy, neighbourhood going downhill, unexpected build next to your house…. you name it. It’s not just the things that are out of our control that influence our decisions, but also the things we can control.

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For example, if you look at who you are today, you will probably find a person that is very different from the you of 10 or 20 years ago. We reinvent ourselves every so often. We change, and with us change our goals, aspirations, and even personal taste.

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Gone are the days of living in the same house “for ever”. Or are they?

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Another side of the coin shows the unfavourable reality of the ever-rising house prices in Australian real estate market, which may well and truly change the “forever home” from being a myth to a fact.

timber dining table with green dining chairs

A new study by Money.co.uk looked at the average age of first home buyers across 25 countries and found that the Australians are, on average, 36 years old when buying their first home. In comparison, Belgium and Iceland are on the top of the list with an average age of 27, Finland 28 and China 29, pushing Australia to the disheartening 20^th spot out of 25.

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Another survey found that over 50% of young Australians (18-29) still live with their parents. Some of the key reasons Aussies are staying put for longer are tightening lending criteria, high transactional costs and the widening gap between property prices and income.

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That is why many more Millennials and Gen Y are approaching home ownership from a very different perspective to their predecessors. Instead of buying a “starter home” smaller and further out, they remain renting or living with parents longer so they can afford to purchase their dream house.

In conclusion, the concept of owning a “forever home” is similar to the great Australian dream. It’s not a myth and it’s not over, but it sure is ever-evolving.