Is it okay that it is impossible for a 21yo to buy a house in their lifetime?

So what is your position on a person who is 21 who is graduating from Uni right now, it is okay that it is impossible to buy a house in your lifetime? It's their fault that they lived in an lifetime of high asset prices and low wage growth?

 

Work harder and earn more money. Your not the only one in this position. You want something enough you will make it happen. Otherwise just rent like the rest of them and splurge all your money on designer clothes, clubbing and going to fancy restaurants and enjoy life.

Also dont expect to start with a mansion in Vaucluse. Go live out in greater western suburbs and move your way up. I know too many young entitled ppl who think their first house should be in Balmain for $400k. LOL

 

Yeah i can say when i look at the kids of today it is a lot easier said than done. Dont want to get into a boomer/millennial debate cause unfortunately any fact or statistic is impenetrable against a boomer's anecdote.
I wonder if you have ever talked to a "entitled young person" cause the ones i know are looking at entry level homes in their mid 30s and not a Vaucluse mansion. And these are the young ones who could at least earn an income whilst wages were rising more than 2%!

 

I get your point in general but the same was being said when I was 21... I worked hard, saved $$ and made it happen. I understand that not everybody will be able to do this. For some this is due to no fault of their own and this is where for government housing ‘should’ fill the gap (we all know that it’s severally under funded and that a whole other issue ). For many others it’s because they don’t save, don’t really try, don’t work hard or get an eduction to seek better pay and waste their money on crap. And have unrealistic expectations.

 

work hard, save, educate yourself financially, starting from small, look interstate if you have to. There are properties for all sort of income if you are open to possibilities. Don't fall in to the trap of victim mentality.

 

If you’ve waited until your mid thirties to start saving for a house then you’ve wasted 10 years... Not impossible but it will be much much harder.

 

Well I'm only mid 30s and have a property portfolio of close to 20 houses so I wonder how I did it. Hard work my friend. Like I said you want something enough you will make it happen. I was EXACTLY your age at 21 when I bought my very first house out in the sticks which is whats called St Marys today. That $200k investment has turned into $750k+ today.

 

Assuming it's you, firstly I would strongly advise you to amend your philosophy on life. You have made so many incorrect assumptions all wrapped up nicely by youthful entitlement and finished off with a nice bow of pessimism.


Mate, you have 2 broad paths in life. One will give you the opportunity to live a great life and a good retirement. The other, well, not so great at all.

The choice is always yours.

 

I’d probably add here that, aside from Melb and Sydney, asset growth has been bugger all. The market in Brisbane has been pretty flat since the GFC. It’s only now started to rise. And interest rates are crazy low, mortgage repayments are much lower than they were 10 years ago.

 

There are people with unrealistic expectations in every aspect of life. Have you been to a nightclub? Some people walk up to the best looking girl at the bar and expect to a have a partner for life. Some people live in unrealistic grandeur - but they arent reflective of the population - at best maybe 5%.
That leaves 95% who are just trying to get a house and raise a family. With 10% annual increase in property prices they fall further behind no matter what they save.
Also my observation was someone who is graduating uni so they had an education. I shudder to think of the economic prospects of the unskilled.

 

Property has not got up 10% each year for the past 10 years.

I stand by my comment that repayments are now cheaper. Eg first house I brought in 2008 cost $365k. Repayments were $600 per week. The same house today would be worth about $650k. Repayments for that today are $550 per week. This doesn’t take into account that money is worth less today than what it was 13 years ago.

If someone waits until they have a family to buy a house then it’s going to even more difficult. Need to start pre-kids and children will significantly reduce borrowing capacity and ability to earn additional income. Who wants to chose between overtime to save for a house deposit vs. spending precious time with their young children?

 

Not me - so no youth entitlement, rather a older head who is worried about the youth of the future.

I can undoubtedly say i had it easier. There is no question. I didnt know it was entitlement to care about people who are doing it tougher - but if so - call me entitled

I know if am on a property chat and you seem to be some kind of guru/spiritual/Pete Evans like talker of property. All power to you. There are plenty of ways to have a successful life which doesn't involve property being the elixir. This talk of success in life being dependent on property isn't healthy and will ultimately lead to societal problems we see today.

 

Maybe broaden your horizons and gain some experience by moving to a new city. Australia is a big place and one of the best choices I made in life was taking a leap of faith and moving away from a major capital city for a major regional city. Cheaper house prices, first home buyer incentive and 95% lvr makes it very doable.

 

I completely agree - money is worth less than it is 13 years ago - wage rises are nothing and asset prices are rising more than someone can save!

Say for your house - back in the day you needed a 10% deposit of 36.5k - you now need $65k for the same house. I believe savings rates were about 6% being conservative - good way to get there quicker. I walked past an CBA advert for .45% the other day, which doesnt even cover our meagre inflation. People are losing money as they save.

Also again i agree - repayments can get easier as interest rates drop! However its undoubtedly easier when you are the asset holder rather than the purchaser as there is only upside and downside in interest rates in the future, rather than currently - only downside.

 

Haha...im definitely no guru spiritual Pete Evans... I , like many folks here started with nothing and built our way up.

And who ever said "This talk of success in life being dependent on property"? I certainly didn't. That would be a ridiculous notion.

You obviously have made up your mind on sticking to a particular philosophical narrative. If that narrative works for you, more power to you. If not, then again, the choice is yours to make changes.

 

Yeah I get that but in the example of the couple in their mid-30s they have had YEARS to save. If they can’t save $65k in 10+ years then there’s something seriously wrong with their spending habits. That’s a measly $3k per person per year.

 

Why ? the "unskilled " can earn more than the quasi educated, even by 21 before the educated get educated. In some organizations such as hospitals the cleaners can earn more than the cooks and nurses. Been quoted $ 350 dollars for jobs that take less than an hour of unskilled labour. One was to clean leaves out of a gutter the other was to replace a tilt a door arm. I know people on centre link who have bought houses. Young people can buy houses with a 5% deposit, once you needed a 20% deposit. May be you could look at houses that havent had 10% p/a increase those 2 and 3 bed one bath weather board houses that were the Taj Mahal to our parents and granndparents.

 

Thats a terrible generalisation, tell that to home owners and investors in Brisbane, Perth and Adelaide, even Sydney does not come close to that that from 2013 to now if you average it out. I went to Perth a couple of years ago, large portion of properties were cheaper than in 2004, and I am not even include inflation. No market behaves linearly and perdicatably, you can't extract small sample in time and use it as an example.

 

This is spot on. I know quite a few folks working their asses off in 'unskilked' work and they are raking it in, and investing.

I've said (like a broken record) so many times, the daily happenings in life are mostly inconsequential to someone achieving their goals. Whatever their goals may be.

The secret is in the foundation. Which is, imho, their philosophical framework. It all stems from there and we all have one, whether we're conscious of it or not.

 

Reminds me of a lot of Australians who go on the dole and wont work the "menial" jobs. I see quite a few sri lankans, Filipinos and Indians who have migrated here , took on 1,2 maybe 3 jobs as cleaners on night shift packers, bottle washers etc and have purchased a house and they have kids as well. I know at least 6 of those groups and I live in a reasonably small circle. Good luck to them. Moral of this story is that there are no excuses.