How can Gen Y buy their first home?
06th Feb 2018
We live in an age where life expectancy is as long as it’s ever been and technological advancements are also unprecedented. However, one thing that’s changed for the worst - at least from the perspective of Gen Y buyers - is the growing prices of property making it increasingly difficult for people to buy their first home.
Whining about it isn’t going to help Gen Y buyers enter the market. And just because prices are sky high doesn’t mean you should rule out the prospect of ever owning a property. Where there’s a will there’s a way. In my meetings with clients across Australia, as we draw up their dreams of property ownership and the route towards achieving it, I often find myself providing them with a series of tips that helped me accumulate my multi-million dollar portfolio.
Benjamin Franklin, one of the founding fathers of the United States of America, once famously said “by failing to prepare you are preparing to fail”. Just like in life, if you’re looking to purchase your first property it’s imperative to make a plan and set goals that are achievable. In doing so, you’ll be accountable for continually working towards your goals and you’ll be able to experience the joy that comes with crossing off each milestone on the way to your outcome.
Once we’ve identified their plan of attack I tell them to seriously pay attention to the transactions flowing in and out of their bank accounts. Is there a gym membership being paid for that they hardly attend? Is Netflix draining their funds every month even though they hardly watch TV series or movies? There are many ways to cap expenditure but the motto of the story is that this money could be going towards savings for a property so spend wisely.
Then I tell them to get in tune with reality. Whilst buying a palatial six-bedroom home as your first property sounds nice, unless you’ve got the financial backing of a wealthy family member or recently received a hefty inheritance it’s unlikely to happen. Once you make peace with the likelihood that you’ll probably have to compromise on wants versus needs when it comes to entering the property market, it becomes easier to find investment options that are realistic.