Most Aussies prioritise property over travel
· Almost 2 in 3 Aussies (64 per cent) think achieving property ownership in life is more important than travel
· 50% of under-30s would rather travel than own a property
· More than half (59 per cent) said they would regret not owning property, than not travelling, by the age of 45
Despite our love of travel, it seems that even the state of housing affordability is not enough to sway us away from the Australian Dream. New research reveals that 64 per cent of Aussies would rather own a property, than travel.
The findings come from multi award-winning travel insurance specialist InsureandGo (insureandgo.com.au), which conducted a survey to gauge what Aussies think is more important to achieve in life – travel or property ownership. The survey also sought to uncover whether they would regret not having done one or the other by the age of 45.
The results reveal that almost two in three (64 per cent) Aussies think it is more important to achieve property ownership in life, while a smaller number would rather travel (36 per cent).
Not surprisingly, travel seems more important for the younger generations: 50 per cent of under-30s believe travel is more important to achieve in one’s life, followed by 41 per cent of 35 to 44-year-olds, 36 per cent of 45 to 54-year-olds, and 28 per cent of 55 to 64-year-olds.
If a person had not travelled or bought a property by the time they were 45, the findings reveal they are slightly more torn between which they would regret most. Most would regret not owning property (59 per cent said this), rather than not travelling. Meanwhile, 55 per cent of 25 to 34-year-olds believe they would regret not travelling more, compared to 33 per cent of those over 55. When looking at the figures for home ownership, it seems to be the opposite for older Aussies: 68 per cent of over-55s would regret not owning property, compared to 45 per cent of under 34s.
Jonathan Etkind, spokesperson at InsureandGo, says: “It’s clear that baby boomers and millennials have different priorities, particularly when it comes to their financial goals. Where the older generations are more accustomed to the idea of travelling after retirement, their younger counterparts would much prefer to travel before then. On the other hand, the Australian Dream for most baby boomers includes home ownership, while millennials are not as fixated on the idea. Perhaps owing to the current state of housing affordability, it seems they would rather spend their money on experiences than investments.”
“For those Aussies thinking of taking a holiday in the near future, one thing that can save them a great deal is purchasing a travel insurance policy prior to going on their holiday. Without travel insurance, overseas medical treatment can cost hundreds – even thousands – if something goes unexpectedly wrong. That’s why we strongly recommend that travellers don’t compromise on getting the appropriate travel cover, and look for a provider, like InsureandGo, that offers various policies for all budgets and for all trip types.”
InsureandGo reveals its six tips to help travellers’ budget for big trips:
1. Know your budget limit from the get-go. Before even picking your travel destination, settle on a spending limit. This will enable you to plan your holiday according to how much you want to spend. This budget should also be a realistic amount so you don’t end up spending money you don’t have, which could result in debt.
2. Have a buffer fund. Once your budget has been decided, take away a proportion of it to set aside as a buffer. This will cater for any unexpected expenses that may arise while you’re travelling. It’s best not to place this buffer fund where you can easily spend it; it should be accessible only for when you need it on your holiday.
3. Decide on your non-negotiables. Most people must make at least some compromises in order to save money when they travel. Non-negotiables could be anything from flights, hotels, events or places you want to see. Once you’ve identified the things you won’t compromise on, you can set your budget and track your spending.
4. Create budget spreadsheets or use budgeting apps. Don’t underestimate the power of a detailed budget planner, whether it be in the form of an Excel spreadsheet or an app, such as PocketGuard. A good travel planning spreadsheet should be flexible, while allowing you to play around with different combinations of flights, accommodation, meals and other allowances that fall within your budget.
5. Look for the best deals and avoid tourist traps or hotspots. Once you’re on holidays and ready to shop, be careful to not get caught out by tourist trap prices. It helps to do some research beforehand as there can be drastic variations in price in one single location. For example, you can often find a better deal for the same souvenir at a nearby local market, compared to a tourist shopping district.
6. Factor in travel insurance. There’s an old adage – if you can’t afford travel insurance, then you can’t afford to travel. If something goes wrong, be it a medical emergency, or lost luggage, the risk of not being covered can leave you out of pocket. Before choosing your insurance, however, check that it covers all the destinations you visit. Additionally, ensure that risky activities, such as bungee jumping or abseiling, will be covered by your travel policy.
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