Youngsters and their views on property?

any youngsters (say under 25 on here) or know a lot of them

when I was 18 and flipping burgers I remember property prices were a certain price in various areas, as I wasnt that interested in property, from my limited knowledge of it, they were at prices where blue chips were a dream and decent areas to me were "well thats quite expensive, but if I worked my butt off I might be able to afford a decent PPOR, oh well, maybe one day"


however even in todays burger flipping wages, the multiples of earning are at least double, maybe even 10 times what they used to be
combined with "entitlement" mindsets from the younger generation (yeah yeah)

im surprised kids these days even bother contemplating buying a house

for example, me flippping burgers at $8 per hour with properties in decent mid range were about $200k-$300k if I recall

now kids flipping burgers are $14 with properties in decent areas being $800k

seems very daunting even without the entitlement

 

That's exactly why the younger people are 'rentvesting'. It's much more achievable to get a cheaper property somewhere they don't want to live and rent where they do.

 

My partner and I are 23 so not young-youngsters, but we've both been interested in and working towards building a property portfolio for a number of years. We saved reasonable money through university, graduated in 2013 and are lucky to have reasonably well paying jobs.
We're still at the start of our investment journey, but have an apartment (current PPOR) and are in the process of settling on an IP (house), both in Brisbane.
Long way to go but we're doing what we can to set ourselves up properly for the future.

 

congratulations guys,

its stories like this I love to hear, young people not whinghing about it and actually doing it, and not saying how easy it is for those that have it handed to them on a silver platter

 

I never really paid much attention to prices when I was in high school. I always read the newspaper every weekend and would sometimes read the real estate catalogue, which came up with a quarterly median price of all the suburbs. I think I started taking an interest in 2007 (I live in Adelaide) and the area and surrounding suburbs where I lived were around 300k median. Now the area is low 400s in 2015 so the median hasn’t increased much.

I first realised how essential it was to get onto the property ladder when I went to Sydney to live after I finished uni. I couldn’t believe how expensive everything was! I used to sit on the train thinking about how I’m going to have to pay 600k for a decent 3x1x1 house in Minto. I got a job in an insurance company and was making 55k (which doesn’t go very far in Sydney) and realised I was pretty much locked out of ever getting into the market for a decade. It’s probably not as bad if you grew up in Sydney and have free accommodation with your parents but if you’re from interstate and have nobody than you’re forced to rent, which is very expensive as well. It was actually pretty depressing so I quit my job and moved back to Adelaide and started saving. I also came across the Somersoft website, which increased my motivation tenfold and within 12 months of being back in Adelaide I had enough money to buy a house and am now looking to buy more

Edit- I just turned 25 recently.

 

No longer on youngster bracket at 27 now

Signed OTP contract when I was 23 for PPOR. Then soon after, I found Somersoft and thought, hang on! I can invest too, NOW! Have 2 IP so far, in the process of getting the 3rd. Hoping to get the 4th next year.

 

Well done you guys.

Just for a comparison; at the same age as you, I had just arrived back from QLD - had been attempting to play the Pro-Am Golf Circuit.

Ran out of money, so had to come back to Melb and get a job...hit a kangaroo driving back and wrecked the car, had to crash at my mate's parent's place after getting back, then had to look for a place to live, and a job and a car again.....

23 years old; No job, no assets of any kind, and no money.

So, the kids who whine about how hard it all is and so forth; I am sorry but I have no ears for it.

 

I'm a youngster (24 if that counts) living in Adelaide, I moved here on my own at age 17 with $500 to my name. I spent 5 years at uni and started my first real job in Dec 2013 - working with dangerous chemicals in a lab for a few hours a week. I didn't give property a second thought at this point.

My first goal was just to buy a nice car - I wanted a 2008 Holden VE Calais V. My existing bomb of a car fell apart on my birthday so I took it as a sign and put every cent I had into my new birthday present, which wasn't enough for the VE but still got a decent car. I still regret spending as much as I did. That was more money than I had ever seen before.

From then I found a full-time-yet-casual job and started saving with the goal of buying a house (just like everyone else) - of course it was going to be a flashy PPOR with 20% deposit within half an hour of the CBD. It was going to take about 3 years to save that much. I started saving 60% of my income, which meant bringing lunch to work every day and no longer buying junk.

Then I started researching how to invest. I had a play with shares, hoping to accelerate my savings, but it did the opposite. I also had a stint of unemployment, so shares seemed like the only option at the time. I also discovered these forums and have asked lots of dumb questions and received lots of smart answers.

Over time I've revised my plan from a 20% deposit on a 400K renovated PPOR to a 10% deposit on a cheaper unrenovated IP with the plan to do the work myself. Despite the setbacks I'm just about ready to buy my first place now so we'll see what happens.

 

It's all relative. Interest rates used to be much higher so at the end of the day repayments as a proportion of wages aren't all that different.

 

Back then
Loan: 200k
Interest rate: 8%
Interest per year: 16k
Burger flipping hours ($8/hr): 2000

Now
Loan: 600k
Interest rate: 4.5%
Interest per year: 27k
Burger flipping hours ($14/hr): 1928.6

 

I've recently turned 20 so i'm one of these youngsters.

I've been interested in property since i was 9 or 10, i couldn't really work out why people (like my parents) invested to make a loss every year (negative gearing) and eventually found my way onto somersoft when i was 16. For the last few years i've been reading the forums religiously, every single day for at least a few hours so as you can imagine i've learnt quite a lot ! I'm so thankful i found the forums and learnt so young.

During high school i was more focused on my studies so i didn't really save that much for a deposit. Despite that, hopefully i'll have enough to buy my first property when i'm 22 and in my first year of full time employment after uni. I'll be working in the development industry, i can't get enough of property !

 

Thanks guys.
It is a fine line to tread between saving money and enjoying ourselves - we certainly don't go without, but we've found it's important to treat yourself to little things along the way.
Through uni I dabbled in the stock market in exploration companies.. still holding at the moment with a ~$12k paper loss. Pains me to say, but it will likely be realised in the next month or so in order to renovate our IP with the money that's left. Learnt a lot from it though, and better to have done it when I could afford to lose it than 10 times the amount in 10 years time.

 

i'm 18, coming up to 19 and just started in the RE sales industry. I have a keen interest in sale, investment and development and am currently saving like crazy to start building my portfolio!

Being in the RE industry is an amazing help and I can see this making my journey that much easier. Property is awesome

 

Most of my friends in their mid to late twenties are too busy partying to be saving for a house. I have a couple of mates who have bought something, but we are the minority.

Most of the ones who haven't bought anything are the ones who complain that it's too expensive, but are also the ones who blow their money on absolutely nothing. Funny that.

 

strangely enough I never went through the blow my entire pay packet on a night partying phase, even though I did go out a lot in my younger days,

ive really never changed my spending habits, I never scrounge for every last cent (frequent flyer points is another story!) nor do I impulsively buy something I dont need or cant afford

so iguess my mindset hasnt really changed all these years,

I do scratch my head about people with lots of credit card debt, loans for this and that, go to a restaurant or to a bar and spend double what I am willing to spend.....and then complain about it

 

I'm GenY and my peers who own property are the ones with strong financial discipline. They are generally silent performers.

Those who don't own property have annual Euro trips sometimes on first class flights, frequent shopping and love renting in or around the city. They also love updating their Facebook very frequently.

(Sydney)

 

how on earth can anyone afford first class let alone a young one unless they have very rich parents!

 

It might sound harsh, but I think unless you are currently earning a relatively high income or have the possibility of achieving one in a reasonable time frame the 2 biggest cities in this country are the last place to live to get ahead.
There's plenty of places around the country where the income to median price ratio isn't out of control, the problem is getting a decent job in one. If young people can they could set themselves up much earlier.

 

I don't know anyone who has flown first class.

I'm 30. I have a lot of friends in the 25-35 bracket with good paying jobs in Sydney (finance, law etc). Yes, some go on holidays yearly, some spend their money on, well, things that aren't a neccissity. But first class? Seriously? Unless they have some serious bankroll from the bank of mum and dad I doubt it. The only person in that bracket I know who has done business class for leisure is someone who had frequent flyer points.

Simple maths. 2k economy. 15k first. That is going to wipe out the number of holidays you can take.

 

I think there needs to be a balance between financial security for when you retire and enjoying your life when you are young. Without telling my whole life story I have owned property continuously since 24 (now 35) and have had overseas trips every year. I cannot think of anything more tragic than wasting your young years trying to build wealth only for an unforeseen circumstance meaning that you don't make it to retirement or are not mobile in retirement.

At the same time I cannot imagine being on the pension for 30 years after retirement. It is a balancing act and not an easy one. Be sensible with things that aren't going to change your life like taking lunch to work and new clothes every week and invest but don't get too fixated on retirement. You've got a whole lotta life to enjoy first.