Being a "Gen Y" young lad I have to say I'm sick and tired of hearing about how "lazy" my generation is and that we are the "want it now generation" which deserves no sympathy for struggling to enter the property market.
The facts of the matter are clear:
1) Baby boomers and Gen X had a much easier time saving for a deposit because a decent house (not a shabby apartment in a thug neighborhood) only required a 20% deposit on a much lower value. Housing in the 70's/80's was about 2-3x median household income while it is currently 7-10x depending on the subarb. Relatively, this makes housing roughly 250% more unaffordable for Gen Y.
2) Stamp duty remains as a fixed percentage of housing values. Thus my generation is forced to pay a hell of alot more stamp duty than previous generations, less of course the "whopping" assistance we get as a FHOG (give me a break).
3) University education was FREE in Australia for my parents and their parents. That is not the case today, with a typical 3-year degree from an average University costing $20,000-$25,000. Many Gen Y's are entering the workforce owing a lot more money than any other generation from day one. Even a University degree these days is hardly enough to secure a job, we're expected to have a Masters, MBA, CFA, CPA or CA. Pick your (expensive) poison.
4) Superannuation takes a slice out of the availble wealth of my generation. Do I like the Government locking up 9% (soon to be 12%) of my income and dictating when and how I can touch it? No. Compulsory super has really only been around for 10 years. Previous generations had more access to their income.
5) Baby Boomers and Gen X's have enjoyed superb wealth creation on the back of Government policy aimed to inflate property values, and generous negative-gearing tax deductions. Australia currently boasts 6 out of 10 of the developed world's most unaffordable cities, with Melbourne and Sydney specifically labelled "severely unaffordable".
6) Baby Boomers/Gen X often say that my generation should "move to the outer subarbs as a start" like they supposedly did. Right, thanks for that. You are the generations who lived comfortably inner-city near transport, and ensured that our rail infrastructure (in Melbourne) remains the same as the 1950's, and kept business concentrated in the CBD. How do you expect us to get to work? Should we drive for 1.5 hours (crawl) into the CBD and park for $16-$30 per day, then drive back for another 1.5 hours? Get serious.
Look, I'm not going to sit here and say that my generation hasn't succumbed to temptation. Of course we have, and that's going to happen as technology advances. But i'm sick of previous generations continuously dismissing the obvious added difficulty my generation faces in reaching the "Australian dream".
And believe me, there is alot of added difficulty.
(Note: Just purchased my first 2-bedroom unit in Carnegie, VIC with my fiancee after 7 years of frugal living/saving for $580,000 plus approx $17,000 in Stamp Duty after the FHOG. My parents bought their first 3-bedroom home with huge back yard and front yard, 3 streets away in 1983 for a whopping $65,000).
But of course, how dare I even mention these facts! I'm just a lazy Gen Y "want it now" type of guy.