Gen Y told to stop whingeing and start saving if they want a chance to get into property market
05th Jun 2015
The advice came in friendly fire from Gen Y peers, tired of feeling guilty about scrimping and saving their way to multiple properties.
Gen Y covers those born between 1983 and the year 2000, according to demographer Bernard Salt - a group he said was treated as “special” and “bubble wrapped” by their parents.
Grow Property Group director Ayda Shabanzadeh, 31 - now onto her eighth property investment - said if her peers were not careful, they could end up only owning property if their parents helped them.
“Gen Y are used to being silver spooned and getting everything they want handed to them on a platter by their parents,” she said. “Unless they smarten up before it’s too late, many in Gen Y will only own property if they inherit it or if they’re kickstarted by a large sum of money donated by their parents.”
She said it was “not that hard” to get into a position to build up a house deposit if you were committed to the end goal.
Among those who’ve successfully bridged the savings gap was 30-year-old registered nurse Jessica Hair, who bought her first property six years ago with her sister Samantha Hair, after seeking advice from Grow Property.
“My sister and I have always had a passion to buy property. Now my husband has one, my sister and I have two, my brother has two and my sister has one with my brother.”
“We started putting a set amount away into a different account that we couldn’t touch and lived off what we had left,” she said.
“My advice would be to seek out a professional to help guide you in ways you can achieve your dreams.”
“Now our incomes are going to pay off investments and with spare cashflow we’re able to do those things Gen Y want to do.
It can take time. I don’t feel like it’s hard. We see properties as investments. We never aim to live in them.”
Ms Shabanzadeh said saving 10 per cent of your salary was a good start to reaching property ownership goals.
“I’ve done it and I probably earn less than many Gen Y peers in the city. The difference is people are living beyond their means, getting into debt because of things they want like holidays and designer clothes.You can do it if you want to learn how to,” Ms Shabanzadeh said.
The first step, she said, was setting up a budget and committing to it including locking 10 per cent of your income into a separate savings account.
The second was to reconsider living conditions, including not living in the best suburb if it was too expensive, taking on flatmates to cut back on bills, or staying in the family home to save money.
The third was to not pay top dollar for everything but to find alternatives like buying on sale or specials including clothes and holidays. “If your timing is right you can save a lot of money.”
Top tips for Gen Y househunters (from Gen Y homeowners):
1) Set up a budget and stick to it. Save at least 10 per cent of your weekly income.
2) Make sacrifices about where you live. Consider housemates or moving back home with parents.
3) Spend your money wisely including waiting for sales and specials.
(Source: Grow Property Group)