EP. 22 | How Australians Are Still Buying Property Despite Rising Living Costs

How Australians Are Still Buying Property Despite Rising Living Costs --- Welcome! 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CAUTION: Since the app uses the browser's localStorage to store your notes, it's recommended that you take a backup of your notes more often using the "Download Notes" button or by pressing the "ctrl/command + s" keys. Lastly, if you're using Notepad, and want to support the development, you can buy me a coffee — the link of which is available in the About section. ** Delete this text and start writing your notes **The cost of living crisis in Australia is changing more than household budgets. It is changing how Australians buy homes, invest in property and define financial success. In this episode of The Property Portfolio Podcast, we examine how rising grocery bills, utilities, insurance, childcare and mortgage repayments are reshaping decisions across the Australian property market. For many first home buyers in Australia, the goal is no longer to immediately purchase the perfect family home. The focus has shifted towards affordability, repayment comfort and simply finding a realistic way into the market. House prices have risen much faster than incomes, saving a deposit takes longer and higher interest rates have reduced borrowing power across Australia. Buyers are now considering smaller homes, apartments, townhouses, outer suburbs and interstate locations that better fit their financial position. In this episode we discuss • How the cost of living in Australia is affecting property decisions • Why saving for a home deposit now takes much longer • How housing affordability in Australia has changed since the 1990s • Why higher living expenses reduce borrowing power • The impact of inflation and interest rates on mortgage repayments in Australia • Why buyers are choosing smaller homes and more affordable locations • How borderless investing is opening opportunities outside major capital cities • Why rentvesting in Australia is becoming more common • How the Bank of Mum and Dad is helping some buyers enter the market • Government schemes for first home buyers • Why investors are paying closer attention to rental yield in Australia • Capital growth vs rental yield in the current market • How cash flow is changing property investment strategy in Australia • Why lower leverage and sustainable repayments now matter more • Co-ownership, shared buying and alternative paths into property • How Australians are redefining the traditional property dream The conversation also explores why the modern property journey is no longer linear. Some buyers are renting longer. Others are living with family, purchasing interstate or starting with an investment property rather than a home to live in. Many investors are moving away from high-debt, capital-growth-only strategies and focusing on properties that offer stronger rental income and manageable holding costs. Negative gearing in Australia may still form part of an investor’s planning, but tax benefits alone cannot make an unaffordable property sustainable. Cash flow, borrowing capacity, rental demand and long-term holding power must all be considered before making a decision. Technology and access to property data have also made it easier to research opportunities across Australia. Buyers are no longer limited to the suburb or city where they currently live, allowing property investment decisions to be based more on numbers and less on familiarity. The Australian property dream is not necessarily disappearing. It is becoming more personal, flexible and financially disciplined. --- TIMESTAMPS 00:00 | Introduction 07:23 | How Rising Everyday Costs Are Crushing Savings 11:08 | From Aspirational Buying to a Survival Mindset 15:24 | The Avocado Myth and Today’s Deposit Maths 20:36 | House Prices vs Incomes From the 1990s to Today 24:28 | Inflation, Bank Calculators and Borrowing Power 25:02 | RBA Rate Hikes and Purchasing Power 33:39 | Smaller Homes and Borderless Investing 39:21 | Why Investors Now Prioritise Cash Flow 42:26 | Smarter Strategies and Interstate Opportunities 54:29 | Rentvesting, Shared Buying and New Entry Paths 01:01:18 | The Future of Home Ownership 01:04:44 | Redefining the Australian Property Dream