Here’s One Unique Way to Keep The Dream of “Owning Your Own Home” Alive

Financial Foreplay® Podcast

It may surprise you to hear that 2/3 of people accessing emergency relief are under extreme housing stress. In countries such as Australia, many adults are reporting that more than ½ of their disposable income goes to keep a roof over their head... leaving them little hope to save for a deposit. Plus according to Demographica, Australia is the only country in the world where 77% of the population is living in housing that is classified as severely unaffordable (defined as 6+ times your annual income).

Since the financial crisis in 2008, many people in America have been forced to rent. It has been reported that 8m mortgages were foreclosed on and $7T in home equity was erased. What this means in practice is that the home ownership rate in America has not increased much at all in the 31 years since 1990. It took a very long time for the market in the US to recover from 2008 and what we are seeing now with COVID is additional pressure on home ownership as both home owners and renters were hit hard by the lockdowns/restrictions imposed to prevent the spread of the pandemic.

Bio:

Daisy Ashworth started off in Local Government in the United Kingdom, specialising in Welfare and Housing law at Great Yarmouth Borough Council. She provided legal advice in benefit appeals and creating the free legal advice website 'Freegal'.
For the past nine years Daisy has been committed to ending homelessness in Western Australia, working for a Not-for-Profit agency in the areas of housing, older adults, family services and mental health.
In 2015, Daisy started developing the social enterprise Mortgage Mates, a revolutionary website that matches two or more users to own a home together, with the aim of increasing affordable housing in the home ownership space. Daisy has been a finalist at the Pitch @ Palace awards and participated in the SBE E3 cohort for female founders.

Financial Foreplay® Highlights:

1. It takes about 10 years on average to save up for a deposit and the average age of a first home owner is 36 years.

2. Since 2011 there has been a 50% reduction in home ownership in the age bracket 18-29 years and a 20% reduction for people 30-39 years old

3. 55+ women are the fastest growing demographic facing homeless right now

4. Home ownership is so deeply ingrained as an aspirational milestone that the inability to get on the ladder is causing significant financial and mental health issues

5. New co-ownership options can allow you to enter the property market 50-70% than if you continued to try to do it on your own

6. 92% of renters aspire to own but 49% believe it is completely unrealistic/unachievable given the current environment and conditions

7. Co-ownership is actually a lot less risky as both parties are much more likely to enter the arrangement with solid plans in place to deal with loss of income, shared expense, upgrades, death, estate issues, plan to exit and realize capital gains, etc.

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