‘Don’t buy $19 smashed avocado’: Tim Gurner

Discussion in 'Investor Psychology & Mindset' started by Sackie, 15th May, 2017.

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  1. Sackie

    Sackie Well-Known Member

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  2. kierank

    kierank Well-Known Member

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    I couldn't agree more.

    I watched the show last night and did disagree with the lawyer they interviewed, Jo Lennan, who is in her early 30s.

    But she is NOT a whinger. She is a cancer survivor (I don't remember 60 Minutes mentioning this). So, she would have been doing it tough.
     
  3. Hodor

    Hodor Well-Known Member

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    There are two points of view commonly presented on the topic, one much more than the other;

    "It is your fault you can't afford a property because you spend too much on smashed avo and holidays"

    and

    "The property market is insane, the younger generation is screwed due to the greedy baby boomers who had it so good"

    People tend to pick the woe is me point of view and that it is everyone else's fault.
     
  4. 2FAST4U

    2FAST4U Well-Known Member

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    "Mr Gurner began his career as a property investor after purchasing a gym in Melbourne’s south in 2001 with the help of $34,000 borrowed from his grandfather". Of course you don't have to make sacrifices when you get handed everything on a platter...
     
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  5. Daisycutter4

    Daisycutter4 Well-Known Member

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    Everything is Sydney-centric. There are affordable - very, very affordable - property options in Brisbane that are close to services, facilities and transport, minutes from the CBD, but aren't cool. They'd be happy to have some millennials move in and bring their hipster ways to the burbs, and they'd be great long-term investment options as well.
     
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  6. Anthony Brew

    Anthony Brew Well-Known Member

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    It is screwed up is that people use the self-entitlement of some young people as a reason to say that the ridiculous cost of purchasing a house is somehow acceptable.

    Older people shrug off (or totally ignore) that a house today costs many more multiples of the median salary than it did in their day.

    Using self entitled people is nothing more than a diversionary tactic.
     
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  7. tommo c

    tommo c Well-Known Member

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    I definitely agree with the overall argument on Gen Y's

    Did our parents travel and eat out every second or third meal or go on 2-3month overseas holidays every year, no! They saved, and paid down their house. Too many of my fellow Gen Y's are crying poor when they are living the lifestyle very different to our parents. Typical Gen Y attitude - we want everything, and we want it now.

    As for Mr Gurner, he had a bit of helping hand at 19/20years of age. I think most 19/20/21 year olds living at home should be capable of saving $10,000 a year. He was, however, in the right place at right time in the property cycle to make some money, and good on him - he's definitely made the most of his opportunity!
     
  8. Anthony Brew

    Anthony Brew Well-Known Member

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    It is not about being "cool". It is about living where your roots are. You can not just expect someone to leave the city where all of their family and friends from their whole life are. That's ridiculous.
     
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  9. Biz

    Biz Well-Known Member

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    Tell that to all the immigrants who came from half way across the world to make a go of it.
     
  10. Hodor

    Hodor Well-Known Member

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    Due to interest rates been low (which can be fixed to avoid surprises) the % of income to service a loan is actually pretty similar to generations past, leaving the same % of income for other purposes.

    There are other problems that may come about secondary to this, current affordability of repayments is not any more of an issue than times gone past.

    Why people look at median house prices for their first house is beyond me.

    I saved up living in a share unit on just above minimum wage. Then I moved interstate for better pay opportunities (and to do what I wanted to in less time) and got an affordable house while still not earning great money in a less desirable area. I don't see anything I did as ridiculous.

    The population is bigger than ever, expecting all those people to fit in the same area is ridiculous. Those with the most resources will live in the "best" locations.

    It is not easy, but there are plenty of solutions. I'm not that clever and I worked out something.
     
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  11. 2FAST4U

    2FAST4U Well-Known Member

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    http://www.economist.com/news/asia/...antpricesmeaneverfeweraustralianscanbuyahouse

    This comment summed it up nicely:
    "Culturally Australians may not default on their mortgages but people buying now aren't exactly going to have much disposable income for the next two decades. It's just a gradual effect. Every year tens of thousands of first time buyers will disappear from certain discretionary sectors of the economy - and they won't come back. Inflation no longer diminishes mortgages and wages aren't growing.
    In five year's time, a much greater proportion of the country will be supporting half million dollar mortgages. If it were possible to short private schools, now would be a good time".
     
  12. Hodor

    Hodor Well-Known Member

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    Part of my list (which wasn't listed) of worries/problems.

    Paying 5% more of your income towards the mortgage also have less impact on reducing the mortgage too.

    In the short term I don't believe house repayments are any more unaffordable than in the past, long term I think there will be some issues.

    Having said that wage growth etc could return. These things don't seem likely now, difficult to see the future however.
     
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  13. 2FAST4U

    2FAST4U Well-Known Member

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    Australian Wage Growth from 1998.

    [​IMG]
     
  14. larrylarry

    larrylarry Well-Known Member

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    An Oxford Scholar...one of the very few from Australia I reckon.
     
  15. Daisycutter4

    Daisycutter4 Well-Known Member

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    Noted, but my argument is that we hear the Australian Property Market is unaffordable - it's too big a description. Sydney may be unaffordable - and most market transactions appear to be happening there - but we are a big country with many markets.
    If you want to be part of the market, there are options. I won't say all millennials are lazy or privileged - some of the most inspiring investors I've interviewed have been in their 20s - but I just don't the concept of them "never being able to afford a property of their own"
     
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  16. Sackie

    Sackie Well-Known Member

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    I spend a lot of time in Asia and you see women in their 70's doing all sorts of laboursome work to help support themselves and their families. Its all about the attitude and expectations. Every time I land home in Aussie I cant help but think how many opportunities of all sorts exist in this bountiful nation. I don't know many places where you can habitually refuse to go to interviews for jobs and the government will still pay you.

    You either grow the whinge or grow the wealth. The equation will never change imo.
     
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  17. larrylarry

    larrylarry Well-Known Member

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    Yes, seed money for business but he could have blown it if he's making a loss and not able to sell.

    Property tycoon reveals the real reason Gen Y can’t afford houses

    Mr Gurner was ranked 157 on this year’s Financial Review Rich List after making $473 million in 10 years. He started out by taking over a lease on a suburban gym as a 19-year-old, using $34,000 given to him by his grandfather. He sold the business a year later to a competitor and went into property development, riding the boom in Melbourne and Brisbane. His Gurner company now has 5000 apartments worth $2.7 billion on its books.

    Unless his grandfather has been boosting his business capital, i think it's unfair to assume he has not used any of his skills into make good of the $34,000.
     
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  18. Bayview

    Bayview Well-Known Member

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    Bit of an anecdote for everyone...I began working full time at 17. My work was nowhere near the parent's house, so I had to live away....it was a combo of boarding both with relatives, strangers, and even a few one-room bedsits...whatever was relatively close to work and cheap.
    The first house for me was at aged 26,an outer-suburbs 3x1 dated house; approx 16 squares from vague memory, half hour commute to work.
    Second hand furniture as could be afforded (no CC's or Harvey Norman deals back then).
    That was an 80% P&I loan, approx 8.5% interest rate from memory, and went up to something in the order of 10.5% for a short time.
     
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  19. Cimbom

    Cimbom Well-Known Member

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    I'm so over this nonsense and tried very hard to not respond but can't restrain myself. His claims are absolutely ridiculous. Camberwell? Bentleys? Seriously? I'm sorry but I'm gen Y myself and I have not met anyone my age who even remotely aspires to this.

    My parents purchased their first home in Deer Park in the western suburbs of Melbourne. This was not considered prestigious back then and is not even slightly trendy now. A small house behind where we lived recently sold for just under 700k and a few others have sold for similar prices. This would not be affordable for a couple with a pretty normal combined income of say ~100k. That's Deer Park FFS!

    I'm not going to be on any rich list any time soon and I'll happily stay that way if it means I'm not as obnoxious and deluded as him.
     
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  20. Ran Gus

    Ran Gus Well-Known Member

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    - Tim "The Exaggerator" Gurner


    He must meet some whacky-as-hell people. I've never met anyone who thinks owning a Bentley is 'normal', or that travelling to Europe every year while buying property actually happens.

    Or maybe he's just full of ****? :)
     
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