The Struggles and Triumphs of Home Ownership Amidst Rising Costs in Australia
Corey and Anna Le, a young couple from Australia, have recently shared their challenging yet inspiring journey towards purchasing their first home amidst the pressures of rising living costs, stagnating wages, and escalating property prices. With a combined annual income of approximately $100,000, the couple had to implement significant lifestyle changes and explore additional sources of income to realise their dream of home ownership.
In an interview with Yahoo Finance, Corey, a machine operator, recounted how their savings plateaued at $10,000, making it clear that their financial situation was not improving. Determined to change their circumstances, the couple launched a cleaning business in March of the previous year, supplementing their primary jobs in an effort to increase their income.
Utilising platforms like Facebook and Airtasker, they successfully built a client base, relying primarily on word-of-mouth referrals to expand their operations. Their commitment to this venture was evident, with workdays stretching from 3:30 AM to 10 PM, resulting in exhausting schedules of up to 18 hours daily. Despite the fatigue, the couple reported earnings of between $5,000 and $6,000 weekly, surpassing their income from their full-time jobs.
After a year of relentless effort, Corey and Anna managed to save $60,000, enabling them to secure their first home in Pakenham, Melbourne, with a 10% deposit. Corey reflected on the difficulty of their journey, noting that the high cost of living makes it increasingly challenging for Australians to enter the property market. Research from CoreLogic indicates that it could take over a decade to save a 20% deposit on an Australian home, assuming a household can set aside 15% of their income—an almost impossible feat for many in today’s financial climate.
Supporting this sentiment, a Finder study projected that approximately 40% of first-time buyers would require over five years to save enough for a deposit without parental assistance. The strain of affordable housing has led many Australians, like the Le family, to seek multiple sources of income. As per the latest data from the Australian Bureau of Statistics, over 963,000 Australians held multiple jobs as of March, accounting for 6.5% of the workforce.
Corey emphasised the reality confronted by families: rising costs of childcare and other living expenses make it increasingly difficult to save money. He stated that even with support, accumulating a deposit of $60,000 is a daunting prospect for many.
Having secured the keys to their new home, Corey and Anna opted to resign from their full-time positions to fully commit to their cleaning business, now known as Sparkling Cleaning. They are currently training new hires to help manage their growing demand. Corey expressed pride in running his own business and providing quality service to clients, citing the independence it affords him.
Currently, the business is generating around $6,000 weekly, although this figure does not account for expenses such as cleaning supplies, petrol, and employee wages. Nevertheless, Corey believes they are financially better off than before. The couple’s ambition now lies in rapidly paying off their mortgage while further developing their business.
In their reflection on the journey, Corey admitted the transition has posed significant challenges, affirming, "It’s been hard to keep on top. Now, I’m not comfortable, but I’m not too bad."
The journey of Corey and Anna leverages a broader narrative of the financial hurdles faced by many Australians trying to climb the property ladder. Their determination and willingness to adapt through extraordinary circumstances illuminate the realities of balancing financial obligations while pursuing personal aspirations in an increasingly competitive economic landscape.
As they navigate this next chapter, Corey and Anna hope to inspire others facing similar challenges and continue growing both their family and business, proving that with resilience and hard work, achieving home ownership is possible, even amidst adversity.
