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

Why is it not affordable? The mortgage would be around $3000 a month. One wage goes into the mortgage and one on living expenses and savings. Only slightly more than what it would cost to rent.

 

Here's another article about it..that's a bit longer..


"focusing on apartments in inner city Melbourne. Twelve years on, he still believes there is a massive apartment undersupply in that city"

Thats an interesting statement....

 

He is talking up his own books of course. Nevertheless, Kudos for him to start with 34K and end up with millions.

In many ways, i get his points even though they are a bit exaggerated. I have friends who simply can't keep money in the bank and who NEED their multiple yearly holidays and German expensive cars that they can barely afford to service but still whinge about things being tough.

On the other hand, i have friends who are great with money but can't afford to buy a PPOR because houses are pretty expensive no mater how we put it and by the time they save a deposit for a certain suburb, that suburb would have boomed and hence they are now overpriced. And not all families have a dual income so for some, the struggle is real.

 

Lol, right. It's so not unaffordable to spend 50% of your household income on your mortgage.

Never mind that a block of land in the same suburb used to cost the equivalent of one years salary for a low skilled worker.

 

It's garbage television.

Do some youth waste their money or have expectations that are too high? Of course.

But with mathematical certainty we can say that affordability was far better for past generations (if taking a holistic view).

Servicing costs may be around the same as 20/30 years ago (at a national level, probably not in Sydney alone), but that doesn't take into consideration that it would take much longer to save a deposit (at same % of income) or that low rates and wage growth increase risk and make it likely a mortgage will be a far greater burden on those buying today.

Can't find at hand, but there is a chart around (from ABS data if I recall correclty) showing spending habits of youth today vs 30 years ago and showed that youth today spend a lower % of income on many of the things they are blamed for wasting their money on (compared with previous generations).

Youth of all eras had their vice (i.e. smoking would have been much more common a waste of money in your parents day).

I like growing wealth + having a whinge

 

Or they could head over to Gladstone Park and buy a house in the $500k bracket.

 

Yeah I've heard they have cheap plots of land on the moon too. Only a three day commute. Back in my day, I had to walk naked through a blizzard for a week to get to work and I'd be lucky to get paid!

 

If this is in reply to my post what is the relevance?

 

Seems normal to me, im just your bog standard Sydney westy, high school drop out...

Seems normal to @Jack Chen too by the looks of it from his other thread. We're of a similar age and similar financial position and philosophy... Food for thought Cimbom pal...

 

He borrowed the money, it wasn't handed to him.

Don't know much about his story but cant imagine someone working their way to a net worth of $500m without making any sacrifices...

 

Lol, this 60minutes story is getting a lot of attention..

These guys have a nice crack
"How Not Buying Coffee Helped Me Make The Most Of The Trust Fund Grandpa Left Me"

 

I wouldn't say that, 34k isn't a huge windfall. Any young person could save that within 2 years of living with mum and dad

 

If they want to buy a house that's the expectation. We didn't buy where our roots were because we couldn't afford it.

 

Absolutely agree.

 

For some perspective, $34k would have been around 10% of the median Sydney house price when it was loaned circa 16 years ago. About $110,000 in today's Sydney housing dollars.

 

hes obviously exaggerating about the Bentley comment

And yeah I agree 19 for a smashed Avo is ridiculous

I saved and scrounged big time to start my first business which failed anyway.
Even to this day Is don't spend 20 bucks for breakfast. Partly because I'm a dinner person and if I were to go out. It would be a special occasion.

My parents who are very well off don't even do that. And their splurge for the week is one maybe two meals with their friends

$4 for a coffee is $20 bucks per week.
If I was doing 5 coffees per week OR a $20 breakfast than that's more reasonable

Sure prices are higher in terms of multiples of income these days..... so go buy a unit


And frankly a foxtel subscription. Tablet subscription. Gym subscription. Netflix. Top of the range iPhone at 90 per month. . Plus 3 breakfasts per week. Plus 5 coffees. Plus an annual European holiday. Plus going out for dinner 3 times per week. Plus 3 hipster take away meals

Collectively to me are ridiculously excessive.

 

They're still publishing twaddle like this?

I'm a saver myself, but irrespective of generation let's not forget spending is what keeps the economy going. His examples are of course... exaggerated though.

 

What's a hipster takeaway?

 

Maybe it's those gourmet burgers shops that are popping up everywhere and charge anywhere between $15-$25 for a burger.

Disclaimer: It's one of my guilty pleasures. But I share 1 meal between my wife and I and we BYO soft drink.

 

Something thay is and always been simple food. And now it's become trendy. People are queuing up to buy it at any price.

Smashed avocados aren't takeaway but hipster too.

$2 for half an avocado
60c for two eggs
50c for bread
50c for salad etc

That's 3.6 for a $19 sale. Mark up of450% odd