Friday, October 21, 2011

Newsflash: Buying a home does not set you up for life

In Australia between 2001 and 2009 1/5 of homeowners dropped out and became renters.

Great Australian twist: home buyers drop out
Using data from the Household, Income and Labor Dynamics in Australia survey, Professor Wood tracked the housing histories of thousands of Australians over nine years. During that time 1.65 million ''episodes'' of home ownership were terminated as people moved into rental housing. Among people under 50, the ''survival rate'' in home ownership was 77 per cent.
The former owners who did not return quickly to the property market were more likely to enter public housing or qualify for Commonwealth rent assistance than long-term renters.
In other words, owning a house nearly bankrupted these families.

Also, such tragic terms being utilized in this article to describe the simple act of moving from renting money on an overvalued asset to renting an asset you don't need to worry about the value of. Orwell would be proud, Adele.

Hat tip: CanuckDownUnder commenting at VREAA (Thanks eh. Mate)

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