More Smashed Avocado - with a twist

Not saying he's wrong, but here what happens when you get on the media bandwagon and don't divulge the whole story

AVO-SHAMER TIM GURNER DEFENDS INITIAL LOAN BY REVEALING EVEN BIGGER LEG-UP

Australia, we've got it all wrong. Multi-millionaire property developer Tim Gurner didn't enter the housing market with a $34,000 loan from his grandfather, and we were foolish for assuming he'd amassed his fortune based solely on that fortuitous cash injection.

The dosh for his first investment property was actually fronted by his ****ing employer, who essentially spotted Gurner a cool $180,000. And it was Gurner himself who just volunteered this information.

Tim Gurner responds to backlash to $4 coffee and smashed avocado comments

PROPERTY tycoon Tim Gurner hit back at the response to his controversial 60 Minutes comments, saying his first investment was the darkest period of his life.

Mr Gurner copped backlash after suggesting young people spent too much money on travelling, coffees and smashed avocado.

The young rich lister who made his fortune off the back of Australia’s capital city property boom told 60 Minutes “when I was buying my first home, I wasn’t buying smashed avocado for 19 bucks and four coffees at $4 each”

 

I thought you were going to suggest a twist of lemon juice, plus some salt and pepper

Seriously though, it reminds me of a cartoon once showing people growing up with privilege (e.g. focus on study whilst not worrying about rent/bills/contributing financially, professional family networks ect)... He has done AMAZING for himself... He probably would have done amazingly for himself without the funds... But he doesn't even seem to acknowledge that he had advantages since all he refers to his cutting luxury items...

 

There was this response: Millenial buys Sydney apartment by giving up $4 coffees for just 547 years

 

And this from FB:

I liked this comment:

 

The 'bigger leg up' only means $12,000 profit really, plus the original $34,000!

 

The bigger leg up was getting fronted the money by his boss

That's not the end of his story though, many people have had an initial leg up but haven't done as well.

“My first investment property was an apartment bought for $180k in St Kilda and I was fortunate enough to have my boss at the time approach me to renovate it while he fronted up the money.

“I spent every night on my hands and knees sanding back the floors, painting, renovating and working on the house. When we sold it, I used the small profits of $12,000 to purchase my next property and it all grew from there. The most important thing for me was just to get my foot in the door at the absolute base level, and work my way up from there.

“I sacrificed a huge amount through those years, working multiple jobs, seven days a week and I saved absolutely every penny that I could.”

After making $12,000 from his first investment property at 18, he took out a $150,000 loan using the $34,000 from his grandfather.

He said he approached his grandfather with a business proposal and used the $34,000 for equity so he could obtain the loan.

He bought a gym, renovated it, and sold it a year later to a competitor. His Gurner company now has 5000 apartments worth $2.7 billion on its books​

 

The thing about this (neverending) debate is that the truth is somewhere in the middle.

Yes, Gen Y (and most people of all generations in consumerist societies from my experience) overspend on luxuries and there are ways that we could almost all cut back.

But even if they did cut back on those luxuries starting from now, it still wouldn't be a quick or simple process to buying a home at current prices.

So the debate then depends on how much you value your "avocado" now (and your trips, your coffee, your netflix, etc) versus the possibility of a home in the future (far less certain, depends on whether prices rise faster than your ability to save, whether you're willing to stomach that debt etc). Add into the mix the complications of your partner's interests, any possible sickness or career change or break ups, periods of unemployment, a decision to try and start a business instead ... it suddenly becomes much less straightforward.

 

Grand designs Millenial edition. Its a hoot

 

Oh my oh my. I think smashed avocado is very yesterday... now we have cloud egg.

 

Melbourne, need we say any more

 

Hmm, another one to add to the list in here

 

Possibly

 

Lol at 12k being a deposit for a property

 

Was the $180k from the boss an interest free loan or was it lent to undertake the reno for some return on the profit or interest payment? If so it wasn't a leg up it was a business deal.

In any case those thinking they would be at the same level are kidding themselves

 

That's not the point. If he was a 20 yo now, no employer would be giving him a house to renovate and keep the profit as said profit would likely be a tad more lucrative than 12k. That money wouldn't even cover the stamp duty on a pretty standard house in many cities now, let alone a deposit. Yes, what he did was impressive "back then" but he wouldn't be able to replicate it now which is the point. Who knows what other freebies he got that he hadn't even mentioned.

 

I think the main point is that its irritating to people to be lectured by the wealthy on the benefits of frugality... I get that. But obviously the underlying message has its truth.

 

A twist. Not a young guy...


'I've been stupid. I should have saved instead of going on holidays'

 

This is the first that I've heard of our stock market friends shorting avocados.