The great Australian housing bubble creating a generation of poor youth

... who are now in their 30s and 40s. The following article is from 2002:

The young are growing up poor - smh.com.au

I see there have been almost 15 years since the article, but it reports the same gloomy outlook for young people as most articles today. While I feel commercial media continues to peddle this trash, what are peoples thoughts of the actual situation? Are young people still getting into property in similar percentages to the past or have things changed? If so, are they values, living expenses or it genuinely more difficult to buy a property to live in?

 

I wonder how Patrick Muhlen-Schulte is doing now? And 10k debt for a year long working holiday... for me that would be a nono. Don't get me wrong, I'm for holidays, but not putting that spending on a credit card....

And so... younger people have less time to accumulate wealth, older people have much more time in the property market... you just have to get in early when the boom starts to happen.

The average person who owned anything in the early 2000 boom in Sydney would have quadrupled their money or better by this stage just by holding. But anybody who just rode the last wave is also laughing...

 

Meh. I'm 24 and earn a below average wage and its pretty easy for me to buy a house within 10km of the CBD and I could pay it off in 10 years.

No one my age seems to invest. It takes effort. Everyone would rather spend their money on their daily $5 coffees and $30 lunches.

 

It's a good thing you're in Adelaide not Sydney because for the same thing here you'd be looking around 1.5 mill...

 

I bought my first place at 24.
I agree with your sentiment, but I'd like to point out that a daily $5 coffee is an investment, a necessity, rather than and waste of money

 

Patrick Muhlen-Schulte | LinkedIn

Looks like young Patrick has done ok.

 

A good coffee machine and grinder, quality beans and some practice will easily outdo most coffee shops in Melbourne. Consider buying coffee machine like buying a house while buying a daily $5 coffee like renting for life.

 

Different day, same poison.

 

Yes. I know. But many people don't seem to realise there's more to this country than Sydney.

 

Looks like he has... but probably still regrets that 10k cc debit when he could have bought in Sydney at the time and made a killing.

 

Yeah correct..there are people who will only consider sydney (maybe mel) and thats it...thats where the country stops. Irrespecive of prerty much anything...incl where it is in the cycle, their capacity, etc...eg if they cant afford much in sydney, they would rather go for a studio in sydney than anything else in anyother place.

 

If it's just for one person, it's sort of like buying a $1million dollar apartment in Camperdown with a big mortgage when you could choose to rent that same place.
At the end of the day you still get the same thing but your cashflow will be better off renting instead of buying and paying off the mortgage. (This only works as long as you use your money for investments elsewhere. The Chris Gray investment ideology).

 

I got my first property at age 24, last year am looking to buy again early 2017 at the latest and hopefully again early 2018 then do an equity release and purchase another around 2020 for my ppor hopefully everything goes to plan,

I agree with joel people can do it if they sacrifice , going night clubbing, gambling and clothes shopping for things they don't need

 

This whole story is nothing new, it was around 40 years ago, heard the same garbage each and every cycle, it only applies to young trendy people who think they deserve to live right near the CBD or Eastern suburbs beaches in the teens/early twenties, or similarly priced places.

If you saw a recent poster who wrote an article, and you look into the details, the media these days is dying and often they have to work free or for next to nothing, but they are the ones that expect to live in trendy places, so they are driving these stories, regurgitating old stuff but more often.

 

I bought my first house at 25 single-handedly. All my friends (who are partnered up/married) whinge about how they will never own a home and how lucky I am blah blah blah. If you add their salaries together they are on a minimum of 10-20k a year more as a couple than I am as a single. They just aren't willing to sacrifice their high flying lifestyle or buy within their means. Their loss. Less competition for me

 

Yes it's getting harder every decade, a lot harder. As long as we have cheap credit it will not get easier and more and more people will be priced out of the market. The only hope is that rates will not go lower, because there is nowhere to go lower so the bubble will not be inflated too much (not Sydney and Melbourne - it's too late for them).

 

As a young and low income investor I've heard every excuse from people my age why they can't invest. Interest rates will go up, don't want the pressure, house isn't new enough etc. The majority just convince themself that its impossible, "so why try". The government needs to implement some basic money strategy education nationwide in my opinion.

 

I agree some basic finances like budgeting, credit types and costs etc could be implemented into schooling. The guvmint find it necessary to provide sex ed so a little finance ed wouldn't go astray.

 

It is getting harder in the expensive areas, you do not have to be too bright to realise you start where you can and work up....

Not many of us would have had a Porsche or Ferrari as first cars, but I am sure a lot progressed to better cars, you also get x amount of people saying they cannot afford a car of any kin

 

When you look at cold hard stats they all show that property these days is more expensive relative to incomes than it has been 20,30,40 years ago etc. However, I agree that attitude is definitely one of the main drivers. If you're not fussed about the location, land size, number of bedrooms etc. than it's achievable. A lot of of people aren't willing to compromise their lifestyle though.