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Housing Affordability - It's not the location it's us!

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Dyl93 | 22 Jul 2016, 03:22 PM Agree 0
Do you think that the issues with affordability are the fact that as a nation we put too much reliance on capital cities (both to live and to to work). I'm 23 and own my own home (on an average wage). When my father was my age he was the same, he would work his ass off (for less than he deserved), ate cans of baked beans for most meals and his biggest luxury was a beer at the end of the week. Now we have several other non essential expenses, TV, Foxtel, Netflix, Mobile Phones, Mobile Data, Home Internet. We have young people to impatient to work for things like cars, where they have a lease on a car worth 20k+ when they should buy and affordable 8k car after doing some saving.

I find one of the biggest issues is that people are now so career focused that they forget that they need to get into the market. My mother married my father at the age of 21 (dad being 26), they were in the market early because that's the best way to do it. Now people work until they are about 28 (with little savings after blowing it on leases and non essentials) and often aren't with a partner the can settle down with limiting ability further. We have over the past few generations put off starting out property ownership journey for the sake of having a nice car and chasing an unlikely promotion. Instead of batting down the hatches and getting in at the bottom of the market.

The 2nd major issue I see is that we (young people/the complainers) are so obsessed with being as close as we can to a CBD so we can be hotshots in suits that we rent ridiculous properties rather than adjusting your work around living in a more affordable area. I don't live in a capital city, I do however have a very good and very professional job. I see my friends driving hours, taking trains into the capital and busting their guts just to get to work when there are perfectly good jobs and affordable housing between 1 and 3 hours from the capital. Whenever I speak with successful older people they always tell me a big story about how the journey began from the average sized town and their first house. Their first house is a small, 3 bedroom home which was more than just enough, it wasn't in central Sydney, Brisbane, Melbourne or the rest. They had little debts because their lifestyle didn't revolve around nice watches and soy lattes at $5 a pop. Their lives revolved around family, friends and looking after their small home while gaining valuable experience in their industry.

A lot of my friends are broke in the middle of the city, depressed and unsatisfied because theirs only so far they can go before they hit a ceiling. My other other friends, tradies, accountants, investment managers live in smaller cities on the edge of town, own their own home (before 25), have time to see friends and family as they aren't stuck in traffic every day for an hour or two and they have a sense of accomplishment because they own something and see opportunity. A major issue with people my age is that we are often too proud to settle while we are young and too desperate to lock anything down when we get to (27-30) that we are often left in the slow lane.

A message to young people, don't go on a crazy gap year unless you can study at the same time, otherwise you will fall about 40K behind your average home owner in just a year. Live cheaply and rely on company for entertainment, not the latest movie or pay tv. Live on the essentials and save, save and save some more. Furthermore, don't be too proud to ask your folks for help. Even if they may not be able to they may know someone who can.

that's my piece :)

  • | 29 Aug 2016, 07:56 PM Agree 0
    You hit the nail on the head Dyl93 and it is excellent that you are already a homeowner at such a tender age.

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