The rise in official interest rates from the Reserve Bank might be enough to give some aspiring home buyers pause. But is buying a house such an essential element of modern Australian financial planning anyway?
Picture by mythoto
The decision today to lift official interest rates to 3.25% (from 3%) will likely to lead to a lot of handwringing amongst potential homebuyers, though even with that change rates are still at low levels. But amongst that discussion, a bigger question can be asked: is buying a house, long touted as the great Australian dream, an essential element of your financial plan?
In a column written for Yahoo!7 Finance before the rate rise, Peter Boehm argues that buying a house doesn't necessarily make sense for everyone:
While a home is an attractive investment, if you don't think you can afford one there are plenty of alternatives - from superannuation to shares and assets such as stamps and art. There's no reason that a house has to be the be all and end all of your nest egg.
So what's your take? Is buying a house still the centrepiece of your financial plan, or are you happy to rent and invest your money elsewhere? Tell us in the comments.