Here’s One Unique Way to Keep The Dream of “Owning Your Own Home” Alive
01/26/23 • 29 min
It may surprise you to hear that 2/3 of people accessing emergency relief are under extreme housing stress. In countries such as Australia, many adults are reporting that more than 1⁄2 of their disposable income goes to keep a roof over their head... leaving them little hope to save for a deposit. Plus according to Demographica, Australia is the only country in the world where 77% of the population is living in housing that is classified as severely unaffordable (defined as 6+ times your annual income).
Since the financial crisis in 2008, many people in America have been forced to rent. It has been reported that 8m mortgages were foreclosed on and $7T in home equity was erased. What this means in practice is that the home ownership rate in America has not increased much at all in the 31 years since 1990. It took a very long time for the market in the US to recover from 2008 and what we are seeing now with COVID is additional pressure on home ownership as both home owners and renters were hit hard by the lockdowns/restrictions imposed to prevent the spread of the pandemic.
Bio:
Daisy Ashworth started off in Local Government in the United Kingdom, specialising in Welfare and Housing law at Great Yarmouth Borough Council. She provided legal advice in benefit appeals and creating the free legal advice website 'Freegal'.
For the past nine years Daisy has been committed to ending homelessness in Western Australia, working for a Not-for-Profit agency in the areas of housing, older adults, family services and mental health.
In 2015, Daisy started developing the social enterprise Mortgage Mates, a revolutionary website that matches two or more users to own a home together, with the aim of increasing affordable housing in the home ownership space. Daisy has been a finalist at the Pitch @ Palace awards and participated in the SBE E3 cohort for female founders.
Financial Foreplay® Highlights:
1. It takes about 10 years on average to save up for a deposit and the average age of a first home owner is 36 years.
2. Since 2011 there has been a 50% reduction in home ownership in the age bracket 18-29 years and a 20% reduction for people 30-39 years old
3. 55+ women are the fastest growing demographic facing homeless right now
4. Home ownership is so deeply ingrained as an aspirational milestone that the inability to get on the ladder is causing significant financial and mental health issues
5. New co-ownership options can allow you to enter the property market 50-70% than if you continued to try to do it on your own
6. 92% of renters aspire to own but 49% believe it is completely unrealistic/unachievable given the current environment and conditions
7. Co-ownership is actually a lot less risky as both parties are much more likely to enter the arrangement with solid plans in place to deal with loss of income, shared expense, upgrades, death, estate issues, plan to exit and realize capital gains, etc.
Get in touch:
Email – [email protected]
It may surprise you to hear that 2/3 of people accessing emergency relief are under extreme housing stress. In countries such as Australia, many adults are reporting that more than 1⁄2 of their disposable income goes to keep a roof over their head... leaving them little hope to save for a deposit. Plus according to Demographica, Australia is the only country in the world where 77% of the population is living in housing that is classified as severely unaffordable (defined as 6+ times your annual income).
Since the financial crisis in 2008, many people in America have been forced to rent. It has been reported that 8m mortgages were foreclosed on and $7T in home equity was erased. What this means in practice is that the home ownership rate in America has not increased much at all in the 31 years since 1990. It took a very long time for the market in the US to recover from 2008 and what we are seeing now with COVID is additional pressure on home ownership as both home owners and renters were hit hard by the lockdowns/restrictions imposed to prevent the spread of the pandemic.
Bio:
Daisy Ashworth started off in Local Government in the United Kingdom, specialising in Welfare and Housing law at Great Yarmouth Borough Council. She provided legal advice in benefit appeals and creating the free legal advice website 'Freegal'.
For the past nine years Daisy has been committed to ending homelessness in Western Australia, working for a Not-for-Profit agency in the areas of housing, older adults, family services and mental health.
In 2015, Daisy started developing the social enterprise Mortgage Mates, a revolutionary website that matches two or more users to own a home together, with the aim of increasing affordable housing in the home ownership space. Daisy has been a finalist at the Pitch @ Palace awards and participated in the SBE E3 cohort for female founders.
Financial Foreplay® Highlights:
1. It takes about 10 years on average to save up for a deposit and the average age of a first home owner is 36 years.
2. Since 2011 there has been a 50% reduction in home ownership in the age bracket 18-29 years and a 20% reduction for people 30-39 years old
3. 55+ women are the fastest growing demographic facing homeless right now
4. Home ownership is so deeply ingrained as an aspirational milestone that the inability to get on the ladder is causing significant financial and mental health issues
5. New co-ownership options can allow you to enter the property market 50-70% than if you continued to try to do it on your own
6. 92% of renters aspire to own but 49% believe it is completely unrealistic/unachievable given the current environment and conditions
7. Co-ownership is actually a lot less risky as both parties are much more likely to enter the arrangement with solid plans in place to deal with loss of income, shared expense, upgrades, death, estate issues, plan to exit and realize capital gains, etc.
Get in touch:
Email – [email protected]
Previous Episode
Stealing Fruit: A Cautionary Tale of Intellectual Property Theft Causing a Business to Go Under
Tania Katsanis ran a multi award winning online business for 12.5 years called Flowers by Fruit. Tania built her business from the ground up – she was focused on "delivering happiness" not only to her customers but also for her team. Flowers by Fruit was revolutionary in redefining edible gifts. Tania and her team created edible chocolate strawberry and fruit bouquets and arrangements for any occasion. The brand and the business had a loyal following and had built a strong reputation for delivering high quality products and providing exceptional service.
Because of the success of Flowers by Fruit and the legal loopholes that allowed online breaches, Tania's competitors got away with using her registered business name and trademark to generate sales for their own inferior, unprotected products. This created massive confusion for customers seeking authentic Flowers by Fruit products – many , mistakenly ordered clearly inferior products, and were severely disappointed with their experience.
The end result negatively impacted Flowers by Fruit -- the platforms such as Google and Facebook unlawfully allowed it to happen, despite the fact only Tania had the legal right to use her registered trademark in the floral and retail industries.
After spending years trying to be heard to protect the Flowers by Fruit brand, Tania made the heartbreaking decision to close a very successful and profitable business in 2018.
Financial Foreplay® Highlights
1. Watch your sales trends very carefully – trends can highlight and help you pinpoint potential infringements of your brand online via digital attacks and unlawful use.
2. Watch out for declines in online orders, product quality issues raised by “customers” who were fooled, and competitive products showing up for online searches of your business name and/or registered trademark.
3. Negative links may be invisible to you but make no mistake they are having a severe, detrimental impact on your organic search ranking on Google
4. Top tips:
a. It is still extremely important to protect your business name with a registered trademark
b. Consider selecting a unique name that has never been used before as it may be easier to trademark, protect, and defend
c. Take your concerns to politicians, media, and other business owners as potential viable options to legal action – together we can raise awareness and prevent use and abuse going unreported and undetected
Get in Touch:
Linkedin profile - Tania Katsanis | LinkedIn
Next Episode
Why Your Spare Bedroom Might Be The Key to Financial Independence
Over the past 24 months as the COVID 19 pandemic unfolded and progressed... it revealed an inconvenient truth about just how precarious the financial affairs of middle class households really are. We now have much greater clarity and certainty around the fragility of our finances – with around 80% of households forced to confront the fact they don’t have enough savings and are around 1 month away from losing their homes. Inadequate savings, lack of financial planning, and with little support from family and the government... Several things have become abundantly clear, We need to understand our debt position and how much savings are required to weather a storm (such as a loss of job, pandemic, health issues) and we also need to better use the assets that we already have available to us to protect against future catastrophes and shore up our overall health as we build wealth for our families and prepare for retirement.
Sometimes opportunities lie in the strangest of places...
While there are reports that we are heading into a decade long housing supply crunch, with reports that affordable housing is at all time lows and Sydney reporting a five year low vacancy rate of 1.7% (with many regional areas reporting less than 1% vacancy), there are 13.5M unused bedrooms in 10m residences across Australia.
Bio
Ludwina Dautovic is the CEO and Founder of The Room Xchange, Australia’s first verified house-sharing platform. The Room Xchange makes it easy for people to find their ideal housemate based on personality, values, and lifestyle. And you can choose to rent or rent offset giving you the choice on how you want to use your asset.
Today Ludwina and I will be talking about how you spare bedroom could be worth $10k a year in rent or over 300 hours of household help.
Financial Foreplay® Highlights:
13.5M unused bedrooms in 10m residences across Australia and yet we have a housing shortage and an affordability crisis.
A spare bedroom can return around $200 a week in rent or 8 hours of help.
Your spare bedroom is an asset that could be making you money – it’s no different than renting our your spare car, garage, caravan, or power tools for extra cash
Having verified profiles means you can pick someone that shares your lifestyle and values.
There are a myriad of reasons why people want to house share post COVID.
The rental market is very slim and people (of all shapes and sizes) are looking for viable alternatives to the traditional share model (that really appeals more to students).
The experience can enrich your life and add value to your life/family.
Our tribal way of living has changed so much in the last 20 years and this is one unique way of creating a new sense of community, dialogue and connection.
$12,000 a year in incremental income could almost double the amount of principal that a family with a mortgage of $500,000-$600,000 is able to pay down each year.
Australia is the only country in the world where 76% of citizens are living in “severely unaffordable housing” defined as housing valued at 6+ times your annual salary.
If all the unused spare bedrooms within 30 minutes of the CBD in Sydney were housed by a working adult, it would increase GDP by $750m annually according to a study by Ernst and Young.
Get in Touch:
Linkedin: https://www.linkedin.com/in/ludwinadautovic/
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