Sophie Absolom, 33, is dreaming of her next destination and is not really interested in purchasing a house, instead she is focused on spending her savings on travel. Picture: Jason Edwards.
Sophie Absolom, 33, is dreaming of her next destination and is not really interested in purchasing a house, instead she is focused on spending her savings on travel. Picture: Jason Edwards.

Why I’ve not bothered saving a house deposit

JEWELLERY designer Sophie Absolom says for the past decade she's chosen globetrotting over trying to save for her own home.

The 33-year-old has jetsetted around the world many times and said she "books a huge holiday at least once a year".

"I've been to the States eight or nine times and I've been to Europe about five times," Ms Absolom said.

New research from lender ME shows one in three Australians are delaying life goals including the great Australian dream of owning their own home, and are also putting off having children or getting married - instead opting to travel.

The research found the average cost of an overseas holiday was $8000 and 20 per cent of people conceded they would be prepared to go into debt to travel.

Ms Absolom said she usually booked her trips on a rewards credit card but paid it off in full immediately to avoid hefty interest charges. She said a month-long holiday would cost her on average about $10,000.

"Why would I change my lifestyle that I'm very happy with just to own a house that I'll have to sit in because I won't have any money to socialise?" said Ms Absolom, who lives in Richmond in inner-city Melbourne.

"I wouldn't be living near by friends and I'd be somewhere that I hate."

Sophie Absolom, 33, has at least one major overseas holiday a year and puts that ahead of saving for a house deposit.
Sophie Absolom, 33, has at least one major overseas holiday a year and puts that ahead of saving for a house deposit.

But Ms Absolom said in the next three to five years she eventually hoped to break into the property market with her partner.
Consumer finance expert Lisa Montgomery said because Australia had an ageing population, people needed to think "how they are going to fund themselves in retirement".

"One of the greatest opportunities to create equity is to buy property," she said.

"Whether you are owning a home to live in or invest in, the opportunities you can get through natural capital gain or via additional payments is the key to unlocking those opportunities and wealth creation."

Ms Montgomery said focusing on travel was not a long-term financial strategy and Australians should think about investing in asset classes such as property or shares.

Corelogic figures showed the average median house prices nationally are Sydney $956,000, Melbourne $780,000, Brisbane $543,000, Adelaide $467,000, Perth $478,000, Hobart $476,000, Darwin $509,000 and Canberra $662,000.

ME spokesman Matt Read said the research proved "one of the great Australian dreams is to travel overseas".

"Everyone is free to make their own decision about what they want to spend their money on," he said.

"A home is an asset that can appreciate in value so if you are thinking purely in financial terms a home would be a better option than travelling."

Mr Read said while it was possible to travel and save for a house deposit, to become a homeowner you needed to be "disciplined" with your money.

sophie.elsworth@news.com.au

@sophieelsworth



Man breached DV order by visiting son, going for dinner

Premium Content Man breached DV order by visiting son, going for dinner

A man banned from going to his partner’s place by a court order thought it was ok...

QCWA CATCH-UP: Turn to trusted group in times of crisis

Premium Content QCWA CATCH-UP: Turn to trusted group in times of crisis

The women of the Queensland Country Women’s Association are there, but who hears...

FOUND: Missing dementia patient located in Rocky’s north

Premium Content FOUND: Missing dementia patient located in Rocky’s north

The missing woman reportedly wandered off from a private residence at North...