Increase in Property Prices’ Effect Car Owners in Australia
Owning a car is something that a lot of people choose to have out of necessity. And now with the increase in property prices, looks like owning a car might be more difficult now that ever before. If you are someone who is saving up for your own property whether it’s residential or industrial, it would be better if you hold off on buying a car… at least for now.
According to recent data, it is more reasonable now to use public transportations rather than using your car if you want to save up for a property. The amount of money you can save up from not owning a car in Australia is huge especially now. Recent studies show that there’s a 6 percent decline in terms of driver’s licenses age 18 to 19. This data was seen to have taken place between the years 2011 to 2016, which now leaves only about two-thirds of license holders at the age of 18.
The Domain Group Data recently reported about the increase in median house price in Australia, particularly in its capital cities like Sydney and Australia. Reports stated that from its median price of $497,059 the price has risen to $713,433 – that’s an increase of about 43 percent. So, you can definitely imagine how difficult it must be for those saving up for their first purchase but also had to consider car expenses.
The drop in terms of license owners can be blamed for the higher costs and the stricter entry requirements. Because of this, the pressure for a lot of drivers is most definitely higher than expected. However, it is not all negative. Some experts also say that cities with great transportation alternatives have also contributed greatly to the decrease. Now with UBER being an in-demand alternative, a lot of people choose to save for the property of their dreams rather than buying a car for themselves.
The younger generation nowadays is said to be “less attached” to their cars compared to the older generation. They are now being forced to choose between owning this or a home which was not the case in the past.
How much does it cost in owning a car right now? Why do young people choose to hold off that for now?
Well, basically, the cost of owning one could actually is more costly and would even prevent you to own property if you are seriously considering one. First of all, cars could cost you around $56,000 for five years and we can all agree how this much dent could cause on your savings. What would be the best way to climb the property ladder quickly? Consider cutting transport costs. By thinking of alternatives such as ridesharing, you can definitely work this out. The costs could most definitely help you save bigger for your goals. Prioritizing is key especially nowadays where convenience can be so much more expensive than you think it would be.