First-home buyers need to stop playing victim
22nd May 2015
Gen Y wannabe property buyers need to stop complaining about being priced out of buying a home.
It seems it doesn’t matter if I’m talking with friends, watching TV, at work or overhearing a conversation at a local coffee shop, the same words are being reiterated by Gen Y: “It’s too hard to enter the property market because it’s too expensive”.
Do we think that by complaining we’re going to be handed the property of our dreams? Unlikely.
As a youngster who migrated from Iran, my parents drummed in to me two points which led to me becoming a multiple homeowner at 31.
The first was that to achieve life dreams one must work hard and sacrifice. The second was to set goals and break down actions on a path towards your dreams.
These two points are crucial when it comes to property investment.
Interest rates are currently at an all-time low, there’s a generous first home government grant scheme and Gen Y are predicted to earn more than Baby Boomers ever did.
Recent figures from the Australian Bureau of Statistics state that first home buyers account for a mere 14.7 per cent of domestic property purchases while the average loan amount was $326,000.
Aspiring Gen Y property buyers need to stop playing the victim when it comes to property prices and start being responsible about achieving their dreams.
As good as a Greek getaway would be during their summer, Europe’s not going anywhere anytime soon so you don’t have to blow cash that could go towards a property.
Better still, if you don’t even have the money saved to travel don’t contribute to Australia’s rising consumer debt levels by getting a loan to fund an overseas sojourn. Go nuts eating and drinking your way through Mykonos when you’re financially stable.
Instead of spending weekends walking out of nightclubs at daybreak with barely enough cash left in your pocket for a taxi home, realise it’s fine to have a quiet weekend and save money.
Start looking at property prices and establish how much you can save per week before setting a goal about when you wish to make your first home purchase. Sydney house prices may be high, but cheaper opportunities exist in the outer suburbs, despite the headlining figures.
Start looking at property prices and establish how much you can save per week before setting a goal about when you wish to make your first home purchase.
Ask anyone who has bought property and they will tell you that they also had to make similar sacrifices and plans to get a foot in the door.
Before I bought my first property at 18 I didn’t have the fallback option of getting financial aid from family so I implemented personal measures that helped me save.
Despite wanting to have my own space and live by myself, I lived with four people in a suburb that was cheaper but a fair distance away from my preferred residential area.
Instead of eating out regularly, we saved our pennies and cooked meals at home together.
I steered clear of credit cards, thank God, and that meant if I was broke I couldn’t give into spontaneous urges caused by what’s known today as Fear Of Missing Out.
The struggle was real but in the end it has proven worthwhile.
Heed this advice, Gen Y buyers, and you’ll find that property is affordable after all.