Housing Affordability for GEN Y

[Corey Batt]

No. My circle of friends and business acquaintances aren't a bunch of self-entitled whingers. Some are buying, some are not buying. None of them, well, ok, one of them, are whingeing.

Meanwhile a lot of other people experience the whining of young people about housing affordability.

I believe its to do with this time period than generation specific, as I've experienced the same complaints across a number of generations, with the common theme of never owning property before. The difference is that the older groups are resigned to the fact they should have entered the market earlier, whilst younger groups aren't willing to make a commitment to longer term saving to meet their goals.

There are a huge number of options available to FHBers in the current markets - meanwhile we still have a large number of 'complainers' who say its impossible. That's what gets the nerves of people who have made the sacrifices already.

 

[chilliblue]

The reasons Gen Y will not be able to buy are
1) Their self-entitlement level is off the charts
2) They're not prepared to buy something modest; it must be within x km of the CBD
3) They'e not prepared to go to work for a few years first
4) They spend all of their money on their social life and physical appearance and none is left over for their house deposit savings.

Poor frigging diddums!

Unfortunately the above applies to all generations. However, it is always the loudest that people hear.

There are plenty of people in their 40's, 50's and even older who have never and will never own their own homes for varied reasons.

 

[Spades]

Housing affordability is a myth.

Buy where you can afford and have a backup plan.

I know someone who was earning 40k or less per year and made some sacrifices and hard saved for a year.Bought themselves a 160k 1 bed unit there after.

Plenty of opportunities around if you look and don't have high expectations on your 1st purchase,gotta start somewhere.

Cheers Spades.

 

[Ideo]

Meanwhile a lot of other people experience the whining of young people about housing affordability.

I believe its to do with this time period than generation specific, as I've experienced the same complaints across a number of generations, with the common theme of never owning property before. The difference is that the older groups are resigned to the fact they should have entered the market earlier, whilst younger groups aren't willing to make a commitment to longer term saving to meet their goals.

There are a huge number of options available to FHBers in the current markets - meanwhile we still have a large number of 'complainers' who say its impossible. That's what gets the nerves of people who have made the sacrifices already.

I must have better taste in friends then

I'm 28. Part owner of a business. Bought 2 investment properties and then sold them to do a rezoning and 30 lot subdivision on a large parcel of vacant land.

The constant language of "gen y does this" and "gen y are so self entitled" and "baby boomers are selfish" and any other pointless generalisation thrown about get tedious, boring, and completely undermine the sacrifices me and many others have made.

In addition, there is nothing wrong with saying that housing is more expensive. It is a simple statement of fact. As a percentage of the average wage it is now a lot more expensive. Even in cheap suburbs. Stating that, and saying people now need to save for longer is a simple statement based in the statistics available. I acknowledge it. It makes it harder to purchase a house. But it is going to make me more money on my other investments. It's give and take.

You make more money, but you have to spend more money.

 

[lizzie]

No. My circle of friends and business acquaintances aren't a bunch of self-entitled whingers. Some are buying, some are not buying. None of them, well, ok, one of them, are whingeing.

Unfortunately it's only the whingers that get the widespread media attention - and hence the perception and pigeonholing.

I do wonder - most of my generation left schooling at 16-18, moved out of home and started work, had some "life" - only the geeks went on to uni - and bought first house in early 20's (5-8 years later) ... but nowadays most kids don't finish their formal schooling until their early 20's and hence - if extrapolated - wouldn't be expected to move out of home until then and start experiencing life after school - and then buy their first house until late 20's early 30's.

Are we - as a previous generation - simply putting our expectations (early-mid 20's) onto the next generation in terms of timeframe - a timeframe they can't necessarily live up to? And because they can't fulfil what is "expected" they have a whinge?

As an X-er, I will freely admit I know some real lazy slobs in our age bracket who will be renting for the rest of their life - and some real go getters who are living the life - it's not a generation thing, it's an upbringing thing - but a whining BB who obviously wasted a lot of opportunities doesn't get the viral sympathy that a Y does.

 

[Ideo]

Unfortunately it's only the whingers that get the widespread media attention - and hence the perception and pigeonholing.

I do wonder - most of my generation left schooling at 16-18, moved out of home and started work, had some "life" - only the geeks went on to uni - and bought first house in early 20's (5-8 years later) ... but nowadays most kids don't finish their formal schooling until their early 20's and hence - if extrapolated - wouldn't be expected to move out of home until then and start experiencing life after school - and then buy their first house until late 20's early 30's.

Are we - as a previous generation - simply putting our expectations (early-mid 20's) onto the next generation in terms of timeframe - a timeframe they can't necessarily live up to? And because they can't fulfil what is "expected" they have a whinge?

As an X-er, I will freely admit I know some real lazy slobs in our age bracket who will be renting for the rest of their life - and some real go getters who are living the life - it's not a generation thing, it's an upbringing thing - but a whining BB who obviously wasted a lot of opportunities doesn't get the viral sympathy that a Y does.

I think that is an excellent point.

I didn't finish uni until I was 23. But that was a 5 year degree (undergrad plus post grad).

I'm perfectly happy with where I am sitting, and knowing that I will be purchasing my first residence in my early 30s. It doesn't phase me in the slightest. Because I have been doing other things.

Holding costs for land and building a business cost money. But the rewards are great. And I can handle renting while I do so.

 

[Deltaberry]

When was the last time a Gen Y cooked dinner at home?

 

[weg]

I just assumed we were talking FHB - not under 25's.

Aren't there less FHB buying?? If so why are there fewer?

Isn't that one of the reasons we are discussing this?

Another thing not mentioned is job security and the perceived {or otherwise} less than prosperous economy.

In some areas RE is not exactly booming for any age or specific buyer group.

 

[Ideo]

When was the last time a Gen Y cooked dinner at home?

Friday night. Last night was dinner at my uncle's place.

Chicken just about to go in as well. Do dinner for tonight, 2 nights of lemon chicken pasta plus tones for stock. Hope that helps.

 

[geoffw]

plus tones for stock.

Tones for stock. Is that like musical shares?

 

[Deltaberry]

Friday night. Last night was dinner at my uncle's place.

Chicken just about to go in as well. Do dinner for tonight, 2 nights of lemon chicken pasta plus tones for stock. Hope that helps.

I'm going out again tonight. Gen Y in the hood, 6 nights in a row.

 

[Kinnon Bell]

This gen y'er is sitting down to a home made salad of spinach, chicken and boccancini (sp?) with a garlic balsamic vinrgarette and a glass (or 2) of midori illusion

I'd take a photo of my dinner and post it online but I don't want to be called a stereotype!

 

[EN710]

The reasons Gen Y will not be able to buy are
1) Their self-entitlement level is off the charts
2) They're not prepared to buy something modest; it must be within x km of the CBD
3) They'e not prepared to go to work for a few years first
4) They spend all of their money on their social life and physical appearance and none is left over for their house deposit savings.

Poor frigging diddums!

Agree with the above except that this is not limited only to gen Y.
And I just don't get the whingeing about house not being affordable... If it's not affordable in Sydney inner city, then choose somewhere nearby.

If they're like a friend of mine live in a country where a tiny studio apartment outside the city is $500K+, a regular Honda civic is $100K+ and her salary is around $2K max then yes, whinge, I can at least understand.

When was the last time a Gen Y cooked dinner at home?

Today, and at least 3 times a week. Also cooked pesto pasta for lunch for the entire week. We eat out a lot too, but my partner and I don't like drinking. A lot of money saved there.

 

[TMNT]

What absolute nonsense.

Pathetic generalisations and misguided assumptions.

just because you or your friends are different, doenst make it wrong!

in fact many of my friends are Double income $100k+,

that is clearly not normal, we all know that

as for the generation bashing, I think there is a huge degree of truth to it, hence its valid

 

[Ideo]

just because you or your friends are different, doenst make it wrong!

in fact many of my friends are Double income $100k+,

that is clearly not normal, we all know that

as for the generation bashing, I think there is a huge degree of truth to it, hence its valid

There is truth for every generation.

This whole myth that you can pigeonhole a whole generation by some pathetic little cliche is truly feeble minded.

 

[trey]

The difference between the generations is that alot of Gen y people will be a slave to the bank for their whole life unless there is a massive crash.

Unlike baby boomers who bought houses for 50k that was relative to there income so they could afford it.

 

[D.T.]

The difference between the generations is that alot of Gen y people will be a slave to the bank for their whole life unless there is a massive crash.

Unlike baby boomers who bought houses for 50k that was relative to there income so they could afford it.

We'll be saying the same thing about our grand kids one day, about how we were able to buy houses for 6 figures.

 

[sanj]

The reasons Gen Y will not be able to buy are
1) Their self-entitlement level is off the charts
2) They're not prepared to buy something modest; it must be within x km of the CBD
3) They'e not prepared to go to work for a few years first
4) They spend all of their money on their social life and physical appearance and none is left over for their house deposit savings.

Poor frigging diddums!

is that the whole generation or parts? if parts which parts? do you have a rough %?

who exactly is "they"?

 

[sanj]

The constant language of "gen y does this" and "gen y are so self entitled" and "baby boomers are selfish" and any other pointless generalisation thrown about get tedious, boring, and completely undermine the sacrifices me and many others have made.

In addition, there is nothing wrong with saying that housing is more expensive. It is a simple statement of fact. As a percentage of the average wage it is now a lot more expensive. Even in cheap suburbs. Stating that, and saying people now need to save for longer is a simple statement based in the statistics available. I acknowledge it. It makes it harder to purchase a house. But it is going to make me more money on my other investments. It's give and take.

.

kudos, the constant mind numbing generational bashing makes me dumber for having to read it. there is good and bad in every generation and although housing is undoubtedly more expensive now Vs wages by every single metric, other things are a lot cheaper too and id argue there is a much higher standard of living across the board

 

[D.T.]

is that the whole generation or parts? if parts which parts? do you have a rough %?

who exactly is "they"?

Parts - the ones who complain about not being able to buy.