FLOURISHING AFTER 50: We’re facing a miserable Christmas thanks to our sky-high mortgage. Is home ownership worth the struggle?

Dear Vanessa, 

I’m feeling so stressed about this Christmas. It’s shaping up to be a huge letdown for my kids. We just can’t afford the usual presents or our beach holiday this year. Everything feels so tight, and with interest rates being the way they are, our mortgage now costs us an extra $26,000 a year compared to when we bought the house. Any money we used to spend on fun is gone.

I’ve been thinking about taking on a second job to help, but the thought of leaving my kids alone during the holidays breaks my heart. My husband is already working double shifts to try to put some savings aside, but it feels like we’re stuck in a never-ending cycle.

Is home ownership really worth it anymore? We’ve worked so hard to get here, but now I wonder if it’s all too much. What should we do? How can we make this Christmas special without breaking the bank?

Christine.

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Dear Christine, 

First, let me say that your letter will resonate with so many families right now. You are not alone in feeling the pressure of rising interest rates and the impact they’re having on household budgets. An extra $26,000 a year on your mortgage is no small amount – it’s no wonder the fun money has disappeared.

Let’s address your biggest question: is home ownership in Australia really worth it? Owning a home has long been seen as a key part of financial security in this country, offering stability and the potential for long-term growth. But the rising cost of living and higher interest rates are forcing many to rethink. The truth is, home ownership is a deeply personal choice, and what works for one family might not work for another. 

You and your husband need to assess if staying in your home aligns with your overall happiness and financial goals. 

Start by speaking to your lender or a mortgage broker to see if there’s room to negotiate a better rate. Many people pay more than they need to simply because they haven’t asked for a better deal. My free tool can help you compare your current rate with what’s available. It’s worth exploring – every little bit saved makes a difference.

If reducing your mortgage payments isn’t possible, take a step back and reassess your priorities. If your home is putting your family under too much strain, there’s no shame in considering downsizing or renting. This doesn’t mean giving up; it means adjusting to live a life that works better for your family.

Now, let’s talk about Christmas. Remember, what children value most isn’t the size of the presents or a fancy holiday – it’s time with their parents and the memories you create together. 

Instead of focusing on what you can’t give, think about what you can. A day at the local park, a homemade picnic, or even a backyard camping adventure can be just as special as a trip to the beach. You could involve your kids in planning the festivities – perhaps baking Christmas treats together or making decorations. These simple moments can be magical, and they won’t cost you a fortune.

As for the idea of a second job, I understand your hesitation. Balancing work with family life is challenging, especially during the holidays. Consider options that might allow you to earn some extra money without sacrificing too much time with your kids, such as flexible freelance work or selling items you no longer need online.

Finally, remind yourself that this is a season of your life, not the entirety of it. These financial pressures won’t last forever. By taking small, manageable steps now, you can ease the burden while finding ways to make this Christmas meaningful and joyful for your family.

I wish you strength, clarity, and a beautiful Christmas filled with love and togetherness.

Warm regards,

Vanessa.

Have a question about family, money, or big life decisions? Send it in to flourishingafter50@dailymail.com.au 

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