Browse Forums General Discussion Re: Are young Australians Missing Out 5Mar 12, 2016 12:10 am Joker Our young generations are victims of the new lifestyle they have been shown, everyone goes weekly into coffee shops, ,restaurants numerous times, ,holidays, drive cars they probably cant afford etc, in my youth none of these were done meaning by 23 I had 75percent of new house and land, ,all from a supermarket job, everyone now wants it all. I agree. I remember being young and basically renting places not because they were nice (that was never expected) but because they were cheap. You shared with people you didn't necessarily like or get along with because it was the only way you could afford the rent. going out for meals or coffee? hah! who could afford that? A lot of the time we could barely afford enough food. Holidays? they only existed if you knew a relative with a holiday house you could use. As far as cars went, no one used to get a car on finance-that was unheard of. You saved up whatever you could, and bought a 20 yr old clunker, no one cared since everyone else was driving the same. You did get to see the value of money though, and how to live cheaply, you had no other choice. A new sofa or furniture? no such thing, you made use of hand me down furniture or bought second hand. As long as you had what you needed, it was all good, you didn't need all the frills. Re: Are young Australians Missing Out 6Mar 12, 2016 9:33 am Well, I don't know about back then (I'm not 30 yet), but I have been able to still have some nice things and save for a house. No vacations (I haven't travelled yet), but I do own a new car... well its 10 years old now but new when I bought and paid for it.. I do go out for lunch and such, but not all the time.. and I don't drink or smoke so that saved me a lot of money. It's all about what you want. I wanted a house, so other things seemed less important and I was able to focus on saving for the deposit. Re: Are young Australians Missing Out 7Mar 12, 2016 11:18 am I think there is a little bit of "age of entitlement". It is funny how many people do not work out a budget or track what they spend. It is difficult to know what levels to pull to save if you do not know where you spend. People leverage up and think that everything is expensive. Living outside your means can definitely stress the financial situation and place you in a spiral that is hard to reverse. Work out where you spend, work out what you are willing to give up to achieve the goal. Re: Are young Australians Missing Out 8Mar 12, 2016 10:00 pm Being a young Australian i believe theirs an age of entitlement on both sides of the spectrum from the teens who dont want to work on center link to the olds who spent all there money and didnt save and demand an age pension. The fact is the good old days are gone you cant buy a 50 grand house with your 20 grand job anymore. You also cant get looked after on work cover then go on the disability pension like the good old days. Or go to uni for free or work decent paying manufacturing jobs because there all gone if you had no other choices in life and couldn't study. The biggest problem i find with house affordability is the bias most people have towards other with no real idea how others have lived and frankly have no right to judge them. I personally left school after year 11 to look after my mentally ill father as there's no places for mentally ill people to go in reality, so was on carers pension for the first 6 years of my prime adult working young life i supplemented the pathetic amount the government pays by cleaning jobs at night then after that working security when id saved up enough to get my license. Where i was raised which was from the gutter dirt poor eating once a day if i was lucky in a housing trust house surround by drug dealers i frankly have no right to be on this forum right now i should be another waste of space floating through life. Instead once my father died i managed to get myself a half decent job earning 50 grand a year its crap with long hours and breaks my back lifting 20 kilo bags everyday all day but it pays. I started saving up the excess money i had immediately towards buying my own home as paying a $1000 dollars a month to live in some barely looked after negative geared property my tax dollars are paying for so the land lord can jack up the rent every 6 months claiming cost of living expensive rises like only home owners feel them anyway didnt appeal to me. So now after 4 years of savings the being rejected by all the big banks because i didnt earn enough a year on 50grand! I went through home start the one shining light the s.a government has implemented that works i am now almost finished building my own place. A rather long winded rant but i always find on forums people have lot of opinions on house affordability like its people just smoking to many cigarettes or drinking alcohol and i like to bring a little humanity into the thread as one persons story. Re: Are young Australians Missing Out 9Mar 13, 2016 3:15 am Havoc you make good points but I know plenty of young folks that cannot manage on 100K a year because they need, big screen tv, holidays, new cars, lots of itunes purchases etc etc. I am not saying dont enjoy life but know where the money is going. Negative gearing is not so great. Its good that you can deduct expenses associated with the rental property however this is not different to any other business. The fact is that in most cases the net income from rental property is well below the cost of funds to it is unlikely to make a profit. One needs to look at capital gains and you cannot live off that. My point was that financial priorities need to be set. No good ploughing more into your super if that is stopping you paying your house off 8 years earlier. I am glad to hear you are sorted and realise everyones situation is different. Re: Are young Australians Missing Out 10Mar 13, 2016 9:53 pm Absolutely alot of young people are financially stupid agreed however most of my friends who are this way where usually the type who have been given everything as a child and continue it on into adult life some even with there parents help i assume if your going to inherit a paid off house or two when your parents die there's no real incentive to buy your own. Re: Are young Australians Missing Out 11Mar 13, 2016 10:36 pm Myself and my husband (late 20s) have been together since we were 15, so we have had a little advantage in that we've basically had the joint income since we moved out of home at 17/18. We did rent for six years before buying. We lived with my parents for a year to pay for the deposit for our first home (and also received the first home owner's grant). Out of our group of friends, there are only a couple of us that 'own' homes. To be fair, the ones who don't aren't in long-term relationships (or haven't been for long), and I can imagine it would be hard doing it on a single income. We have definitely prioritized travel - I went overseas four times last year, and we generally travel overseas at least twice a year - and not on a 'budget'. We do also own both our cars (both around 10 years old now), and have no credit card debt (but do have a credit card each to earn points etc). We are probably 'middle-class' in regards to income, but I think a lot of it has to do with the fact that my parents have let us live with them when we a.) were saving for our first house and b.) sold our first house, and need to save more for our second house. They are travelling around Australia now, so it would have been empty anyway. My husband is away 3-6 nights a week, so me being by myself I generally just grab some takeout for dinner (not fast food), so we don't have a huge grocery bill as such. We don't spend a whole lot on going out for nice dinners/movies (maybe once/twice a month) since we don't have that much time together. So to be fair - we don't feel a 'sense of entitlement' - we both work extremely hard for what we have (we both work jobs 50+ hours a week), but we discuss our priorities and save accordingly. We intend to at least have secured land by the end of the year, and start building next year (my parents have offered to pay our deposit so we can secure the land, but we have not decided yet whether to accept this) - but also have another holiday to NYC booked for December. I know we are lucky to have the support of my parents and that not everyone has this, but to be fair the amount we have spent on holidays (while both owning and renting) would be well over a 20% deposit, so if we had needed to sacrifice travel to save (rather than living with my parents), it still would have been possible. I would say property value in our area is well under the national average (although perhaps so are our wages, not sure), so we also have more opportunities to buy newer and/or larger properties at lower prices. 1st build: viewtopic.php?f=31&t=59376 *New*-2nd build: viewtopic.php?f=31&t=70324&p=1154282#p1154282 Re: Are young Australians Missing Out 12Mar 14, 2016 1:07 am Wow overseas 4 times in a year, how times have changed, has me and my wife went only out of Victoria for both of us , , first time ever in our late twenties, but had our first home fully paid within one year of marriage. Re: Are young Australians Missing Out 13Mar 14, 2016 9:42 pm I think the issues are with younger people (can't call myself that anymore now I'm 36) is they want the best from the start. We started 9 years ago with our older house for $173,000 - not the prettiest house but it was livable with new carpet and polished floor boards and fitted us as a family. Its also on a main road. Over the years we have slowly done it up, painted, new ensuite upgrade, updated kitchen, completely renovated back area of house from a bad added on reno in the 90s and its a nice house now - but for some young people they would still turn their nose up at it because its 'old'. Over time our income increased and now we are finally building our new house we always wanted, in a quiet area and where we would be happier to live. But we have been married for 15 years, so has taken us this long to get here - first 6 years of renting, then 9 years in a older house and doing lots of DIY and now getting where we wanted to be. Yet the young people I work with just want the house I'm building now, NOW. They consider it a waste to go through the whole upgrading process - but they don't see that they can't afford the bigger newer house now - our income has doubled in 9 years which is another reason why we can afford 2 mortgages while building as well as not using our equity at all from our old house for the new house - so they are separate. They need to see that their income will increase over time also, they will have kids and having time off with smaller income for that space of time is good to have a smaller loan, kids grow and allow you to increase work and income again and all this allows upgrading. Then there is the issue of saving for a deposit - I remember talking to many people from work in their 50-60s now and most of them speak of living with relatives when married to save money for a house, one even lived in a house with her sister and brother in law, 2 nieces as well as her hubby and being pregnant with a 3 bedroom house. She said after 3 years they were able to move out and buy the house they have been in since. Her sister also saved during that time (they all rented) and also brought their house they still live in. I find now, yes kids stay home longer, but they don't save - we seem to allow them to just have a free ride and have fun - what we need to be doing is teaching them to save. I know one girl who saved throughout high school while working part time, built a house at 18 and then rented it out, so got a tax deduction from it while living at home. After 6 years she just got married and they were able to move into the house she built, over time the house has increased in value plus she has a lower mortgage than most (lower than current rent) and now they can think about kids without the stress of her going on maternity. BTW she is a checkout operation - so low incomes can do it. So I think we need to teach our kids to save and look into the future - make use of things like living at home like the girl above, have goals and see that having everything now isn't important. ~Shellby~ GJ Bridgewater 203 11/3/2016 - Site Work Started 29/9/2016 - Handover 142 Work Days 6 Work Days Over https://forum.homeone.com.au/viewtopic.php?f=31&t=80174 To my understanding early saw cuts are to control shrinkage cracks, so doing them now would be pointless. 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