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Why Gen Y isn’t buying homes

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Your Investment Property | 16 Dec 2013, 04:32 PM Agree 0
Contrasting Gen Y to the Baby Boomer generation – the generation of most Gen Y’s parents – reveals their conflicting attitudes and markedly different view of the property market
  • Gen whY doesn't it fair for us? | 17 Dec 2013, 01:27 PM Agree 0
    Not entirely true - I'm a Gen Y and brought a townhouse when I was 25 a few years ago when the first home owners grant was 14k (and hence the bulk of the deposit). I've regretted that decision ever since. Over 1/2 of my income goes to the mortgage, while my mother was paying less than 1/4 of her wage of her age when she brought a home when she was 25 (and was still travelling the world at the same time). After a nasty divorce, she now has no assesses, no income and lives with me. No one wants to hire someone who's in their 60s....

    My friends are travelling the world, have new cars, have cash to burn and are living rent free in their parents investment properties (Who wouldn't travel when living rent free!!).

    In this economy, our generation choose to either travel, or buy a property. We don't have the choice of both. This is always overlooked when I read these articles.
  • Jose | 17 Dec 2013, 01:54 PM Agree 0
    So in summary... your friends are parasites.
  • Vladimir | 17 Dec 2013, 03:36 PM Agree 0
    Everything in this article said is just to cover up the real problem of housing affordability and property bubble! I am one of generation Y, and I can not afford myself buying a house just to live in. To be able to do so, you at least have to have a wife who is also working on 2 jobs, like me!
    And you are telling us the stories about investment and travelling overseas rather than buying a house!
  • Pascoe | 17 Dec 2013, 07:13 PM Agree 0
    Its because Gen Y wants it all now. The 4 bed Victorian in Toorak or Brighton. Maybe if they settle for something a little less extravagant for their first property it wouldn't be a problem.
  • Philip Williams | 17 Dec 2013, 10:50 PM Agree 0
    The antics of the Reserve Bank (& Government) using home purchasers as cannon fodder with inexcusable swings of interest rates to balance our economic cycles AND 'noose around your neck' loan structures have seriously eroded confidence of owner occupier home purchases. Don’t get sour, get smart and protect your purchase by making your first home an investment home that shares the pain of any interest rate hike with the Tax dept and the lessee. Buy where you can afford stick it to the Govt & start your investment journey.
  • I am a single Gen Yer and my friends who can affor | 18 Dec 2013, 06:44 AM Agree 0
  • Claire | 18 Dec 2013, 06:49 AM Agree 0
    I am Gen Y have 2 investment properties and would like to continue to have more. Am just about to go on a 6 month trip to Europe/south America. When will people learn that you are never going to get anywhere whinging about your situation, figure out how you can get started in the market and do what works for you. I agree withPascoe and Phillip.
  • Mobius | 18 Dec 2013, 09:15 AM Agree 0
    @Claire How did you manage that, did you live at home to save a deposit? How many of those investment properties do you outright own? How many of those investment properties are costing you out of pocket?

    Personally I'm looking at buying a modest family home 600k (first home), and would never consider real estate property as investment, not just for economic reasons but ethical. I would much rather put my money in the stock market towards a bluechip business that doesn't cost me money to maintain.

    in terms of the current housing market it's a mess because;
    Negative gearing needs to reviewed, especially when you own more than 1 investment property.
    Foreign ownership rules need to change. The gov don't even report on the % of foreign investment.
    All types of cash incentives should be abolished, they just distort the market, except for newly built homes.

  • Jane | 18 Dec 2013, 09:23 AM Agree 0
    I have bought 3 investment properties, I'm single and no one went guarantor on any of my loans. Paid LMI on my first one - the interest is tax deductible anyway so get over it. From my very first job I had money taken out of my pay every week to save up for the deposit, so I am used to not spending money like an idiot. It can be done but you have to do it - I think Gen Y just want it to magically happen for them.
  • Manifest Destiny | 18 Dec 2013, 01:01 PM Agree 0
    Agree with your every word mobius

    The mass media have sure done a great job smoke screening the misgivings of the baby boomer's selfish materialism and wanton greed. Its all Gen Y's fault! The vacuous "social experts" say. "They're all misty eyed dreamers!" they say.

    I'll tell you why we prefer apartments, because we can't friggin afford a half decent house and land because its been driven sky high by speculators who think house prices must double every 7-10 seconds.

    How anyone can think home prices will continue to increase despite low and stagnating wages in this country is beyond me. By all means though, go ahead and play real life monopoly. After theres a housing crash I'll be at the ready to pick at whats left of your financial carcass.
  • Andrew | 21 Apr 2014, 10:41 PM Agree 0
    Err to those saying that Gen Y just wants it all now, basic maths shows that houses are much less affordable then during the baby boomer generation. Not only is it widely reported that housing is less affordable, those statistics do not even take into account the distance to work. If you factor in trying to buy a house within a reasonable distance to work, you then see that housing is completely out of the realms of all possibility for most first home buyers relative to previous generations.

    As for Gen Y preferring apartments, do they prefer them, or is that all they can afford within a reasonable distance to work? I don't know the answer, but I guess that survey said they prefer them. I know some Gen Y who own investment houses and rent an apartment - the investment house is no where near their work so they can't really live in it.
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