Young Australians are being warned they are not sacrificing enough to break into the property market. Property prices have soared in many Australian cities in recent years, at the same time as a cost of living crisis has hit many cities.
A survey of hundreds of Yahoo Finance readers found that 61% are worried they’ll never get on the ladder. But the Sydney-based woman believes Gen Z and Millennial Australians can find homes if they try a little harder.
“They don’t make sacrifices…It’s hard for them, but when I was younger, we never had brunches or parties,” she said in the Composite Street video.
This advice reminds me of something uttered by Australian columnist Bernard Salt. He suggested young Australians should forego modest luxuries to buy a home.
Back in 2016, his candid words garnered a lot of headlines.
“I’ve seen young people ordering crushed avocado and crumbled feta cheese on toasted five-grain bread for $22 each,” Salt wrote.
“I’m middle-aged and have raised a family, so I can afford to eat this for lunch. But how can younger people afford a meal like that? Shouldn’t they eat at home and save money?” How often do they eat out?”You could put $22 toward a down payment on a house several times a week. ”
A Sydney property owner admits to partying here and there, but believes home ownership has become an idea out of reach for young Australians who have given up on it.
“I feel bad because the younger generation today thinks, why bother? It’s too expensive. I just go to parties and have a good time,” she said.
This woman had some candid advice for those still trying to figure out how to break into the market.
“I think it’s more difficult for them now because the goods are so expensive, but you can start small,” she added.
“A lot of people buy places that are too big, but you have to make sacrifices.
“I bring my own lunch to work. I always do. And if you want your own place…start small, but make sacrifices. Work two jobs, buy a lot. Work. Don’t go out.” As much as you like. ”
According to the Australian Bureau of Statistics, more than 961,000 Australians hold multiple jobs.
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Young people are also driving the trend of finding side jobs to increase their income.
Data from Small Business Loans Australia shows that 51 per cent of people under the age of 25 want to start a side hustle, and 49 per cent of people aged 35 to 44 also plan to earn extra income. I did.
The woman featured in the Composite video admitted that breaking into the real estate market was tough, saying it was “a long time ago.”
She claimed that because she was a single woman, she could not view the house and that her father had to be a guarantor in order to obtain a mortgage.
The property owner took back a number of comments about her advice to young Australians.
Many people are totally “out of touch” when she eats a few homemade lunches or suggests that if they just stop going out on a Saturday night, they’ll magically be able to go home. ” he said.
“Oh bless her, I don’t feel like things have changed at all. Working hard and putting up with coffee isn’t enough anymore,” one person said.
“How come people have become so completely unreachable? Most of my friends have been working since the 14/15th. They haven’t disappeared within the company. They just keep blaring their cars and still slipping by. I’m 20 years old and I can’t even remember the last time I went to a club,” another added.
“She’s not actually wrong, but people heard that first sentence and started typing,” a third defended the woman.
A fourth said: “She was almost spot on. Real estate prices are so high that it’s almost impossible to pay without making sacrifices. She also needs a guarantor, so a lot of… First home buyers will also need a guarantor, he added.
Mortgage broker Jess Phillips said she had seen too many young Australians with high expectations about how much they could afford for their first property.
She told Yahoo Finance that considerations include price range, suburb and property size, but she wants it to be more realistic.
“This is your first step into the real estate market and you will take advantage of this later,” she said.
“It doesn’t have to be the biggest and the best most of the time.”
Fellow buyer’s agent Madeleine Roberts was shocked when I told her that a $450,000 home 30 kilometers from Melbourne’s CBD could be a great first step onto the market.
“The level of entitlement that so many people have is incredible,” she said on social media.
“Everyone wants to have their cake and eat it too these days, but no one makes sacrifices. I just turned 30 this year and I’m living in a pretty upscale place. I own a property there and I had to live there in order to come here, and to be honest, it was exhausting.”
Bankwest’s Home Truth research released earlier this year revealed that an overwhelming majority (78%) of young Australians are currently willing to compromise on certain property aspects to buy a home. It became.
The research surveyed buyers in Western Australia and found that almost half of buyers aged 18 to 26 were satisfied with getting a property that was smaller than they expected. .
Additionally, 39 percent say they’re willing to compromise on location for affordability, and 68 percent of Gen Z and 50 percent of Millennials say it’s not as important as affordability. respondents said they were prepared to choose a home in an unsafe suburb. A state where one’s feet are placed on a ladder on the premises.
“The current overheated property market combined with cost-of-living pressures has not dented homebuyers’ aspirations, but they are increasingly willing to sacrifice certain features to obtain a home of their own. ” said General Manager Jodean Murphy. Bankwest’s Head of Customer, Marketing and Communications said:
“We have consistently believed that home ownership is important to Australians, regardless of the property market or economic conditions at the time.What will change is that aspiring homeowners will It’s about how you adapt.”
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