The Great Australian Dream is to own your own home.
It is a belief that in Australia, home ownership can lead to a better life and is an expression of success and security. That belief has declined dramatically over the past 20 years and many young people can no longer afford to buy in this housing market. Attaining this dream for many has become a stressful experience and can leave a bitter taste in their mouths. For some their anguish they experienced during the process of obtaining their new home can leave residual energy and take on the shape of a huge black cloud that hovers above. Instead of this new home being your sanctuary, the place in which you can unwind after a hard day, the space in which you create beautiful loving memories with your family and friends – now represents all the hardship, regret and disappointment.
A home owner who feels they do not love their home has in some way detached from its value. They don’t perceive this space to be loving, nurturing or a place where they can feel safe & secure. Instead they perceive this to be attained through deceit, wrong-doing & dis-honesty, even from a third party.
Sydney’s Lord Mayor Clover Moore spoke at ‘Fixing Sydney’s Housing Crisis Summit’ and he noted: “it costs almost 5 times more to buy a house or apartment now than 23 years ago. Of residents within the City of Sydney area, 84 per cent of those in the lower income households are currently experience “housing stress”, with more than 30 per cent of their gross income spent on housing - http://www.domain.com.au/news/affordable-housing-at-crisis-point-clover-moore-20150313-143hsw/
What does it mean to actually be in housing stress?
As a general rule of thumb, a household spending 30 per cent or more of its income can be considered under housing stress, and under "extreme" housing stress if spending exceeds 50 per cent. Other studies may apply a different threshold, or restrict its definition to households with below average income - Wikipedia
Housing stress and the mental health & wellbeing of families –
Housing stress puts enormous pressure on families in many ways. There is a constant worry of their finances which exasperates their fear of losing their jobs. These home owners are continuously walking on egg shells. This continued thought patterns and beliefs will lead to other health issues, such as anxiety, nausea, sleep-ness nights which all can affect their employ.
People who are stressed in general, are more likely to experience anger. Anger can lead to uncontrolled behaviour; arguments, physical fights, physical abuse and assault.
In Belinda’s case: they built their home and sort Financial Advice from an expert. Can we TRUST the Experts?
Experts are there to help knowledge and guide us in areas that we are not educated in, full stop. We are all not experts in every field, so we have to seek outside help from the experts in a particular field. It is expected that they present themselves as honest & trustworthy.
It is not advisable to ever put your entire faith in the hands of a person whom sits opposite you, who declares their expertise and represents themselves to be an expert – no matter if they are an employee or self-employed or come as recommendation from your contractor. At the end of the day, it is business and that means sales/commission. You should ALWAYS take on board their advice but ultimately you need to make the final decision once you fully understand the content of what is being sold to you.
People tend to trust those who are linked to or associated with reputable companies. It is presumed, that they ‘must be trustworthy’.
What about those final 10-20+ pages of legal text? Do you read the ‘finer’ print? That print that is so small you can’t even see it unless you have a magnify glass.
Prior to entering into any kind of legal document, all consumers are guided to read the policy, terms & conditions. To read legal text is like reading a passage in another language. Any legal contracts that a person is considering entering into, should always be checked by a Solicitor first.
It would be naive of us to think that there are no dis-honest or unreliable (better known as dodgy) operators.
How much of this Financial Stress do we have to take responsibility for? There is certain criteria that has to be met when applying for a home loan. Not everything seems great in reality even if it initially appeared to look good on paper. Your figures may stack up against the loan but when you have to apply this on a day-to-day basis it can easily fall short.
Remaining on target each week can be stressful just having to constantly think or worry about the finances. If you are worrying too much, then you won’t be able to relax and enjoy life or your new home.
All a family has to experience is a decline, a shortfall or lower income that’s anticipated for you to fall short one month on the mortgage. Even when we list all of our ‘known’ expenses into our ‘budget’ and the end figure seems workable – there are ‘unknown’ factors that are the usual reasons for blowouts. Blowouts are amounts of unforeseen expenses that are added to your expense list that are not usually covered in your budget. They can be;
Physical or Mental Illness – any kind of illness, sickness or health issues that require you to take time off work or expense extra money towards;
Sick Days / Time Off Work
Reduction in Income – results in an unbalanced budget;
Loss of Employment
Pregnancy – not all careers offer maternity leave
Unforeseen expenses – repairs and more
When unforeseen expenses creep into our budget it can take months if not years to get ahead, again. Every dollar adds up and before you know it, you are unable to cover your known expenses and seem to be chasing to get back in the black. DEFINITION of 'Black' a description of a positive balance on a company's/personal financial statements.
Strategies & Insights –
Create a Budget –
Create a realistic budge to help you better manage your finances.
A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.
‘Separate’ Home & Financial Adviser –
Your Financial Adviser offered you ‘advice’ only, he did not select your home – you did that! It will help you move forward and focus on the areas that need your attention to fix, change or amend and that is your legal situation with your Financial Adviser.
The deceit you are feeling is not your home and you can choose to love your home, it is a choice.
Meaning of Home –
Remember why you first chose your home and the excitement you had. This home has not changed any of your future dreams, ideas, wants or desires that you initially hoped for – it is still the same bricks & mortar that you selected. Try to sit inside your home and begin to appreciate all its value’s.
Your home did not deceive you, it offers you warmth – protection – security & your own space to do what you please in private.
Plan an Exit Date –
You may be surprised to read point 4. The reason why I have added this is because no matter what people try to change whether it’s their financial situation, implement a budget, their perception or circumstances, if it still leaves that bitter taste and the feeling like this home is not a ‘home’ to them, changes need to be made. By setting an exit date, you give yourself enough time to ‘give it a go’ and try to make changes to the best of your ability and if you still feel that even with all the changes it still feels the same. Move out. For some this option can’t come fast enough, for others they get to their exit date only to realise they have changed their minds.
Re-assess the situation –
When you reach the exit date and before making any kind of decision, re-assess your situation. You never know just how different you may feel now that you’ve been working towards a plan. Your circumstances, situation and issues may have sorted themselves out by now.