IS THE GREAT AUSTRALIAN DREAM FINALLY DEAD!!!!!!!!

Peter,
I am 22 and work in a warehouse for 35k per year, and guess what? i own 5 property’s!!
dont be such a wimp!!
I suggest you read some books by Robert Kiyosaki, And stop Winging!!!

Hi Paul,
I worked really hard for two years before i came to Aus(yes im a pom, and dont mention the cricket!!!) working two jobs, buying and selling second hand cars and other bits and bobs. Managed to save 50k and bought a unit in perth 2 years ago for 180k, borrowing 140k, I then continued to work 3 jobs and save enough for IP back in the UK which gives me $600 pcm positive cashflow, i then bought a further 3 IP’s in the last six months using cashback offers(100% finance deals) also in the UK. The cashflow from my IP’s now cover my mortgage repayment,
so i can now save most of my working income to buy more property.
I think what some people need to understand is that even though the average house price in perth is 420k or so, that doesnt mean thats what you have to buy, There are still good deals to be had!! i saw a unit come on the market recently, 5 km from the CBD, needed some tlc but not anything major for 230k! If you get yourself in a strong position by working hard and making sacrifice then you can profit from oppurtunity, and i do feel embarrased to be a twentysomething when i hear such pathetic remarks like “its not fair, i cant do it, it was easier 20 years ago” If you keep saying and thinking that you will be 50 and still saying and thinking that.
Figure out what you need to do it, then put your head down and get on with it.
Anybody that has done well financally has done so because they went out and did things others were not prepared to do, its that simple, i think!!!
it can be done Peter, Dont give up!!!!

I totally understand how you feel. I am in the same situation, so in determination I just looked at other avenues a little ‘out of the box’ from all the educational CD’s I’ve been listening to. I share these in case one triggers you to give it a go.

1) When getting to know an area, I drove street by street to found the worst house in the best street and even though it wasn’t for sale, I approached the home owner to see if they wanted to sell.
This hasn’t paid off yet, but I’ve got nothing to lose. My hope is that just by persistence that I will find someone who wants out and I may find a bargain.

2) I started talking about my property ideas and goals to a select few who I knew could invest, but didn’t have the time. My parents don’t own their home, so I couldn’t go there, so I asked my older friends. A friend of mine has $ and equity to invest but not the time, so I bought the CD on doing a joint venture (this is a partnership type thing in property) by Rob Balanda & you can also buy info on this from Reno Kings who you can pay to hire as a mentor to set up the first one. This way I do the hard renovation work in my evenings and weekends and he funds it all. We share in the profits on sale. I haven’t sold it yet, but when we do, I will have enough deposit to add to my savings for one of my own. He’s happy, & I’m happy.

Don’t give up buddy. I hear your frustrations. Just channel those into trying one practical step to move forward. If the one I am trying above doesn’t work for you, then ask others for more practical hints to get started. I am sure there are other ways.

You are right, the investing world is different to when our parents grew up. But you know, that’s what makes us x Genners so resilient – we are used to coping with change so we just find another way around it. I’m not going to let circumstances dictate my life. You can choose that too. Sure we acknowledge our frustrations and weaknesses in our financial position, then channel this energy to find a different way out.

P.S. The other thing I do is keep getting educated, so I am better understanding and recognising my practical options – I feel more empowered this way too. I have a few friends who split the cost of educational resources and we share them. This might help too.

Australia is a rich country with great opportunity
You can achieve or get anything you want in life if you have a positive attitude and work out HOW to fulfill your dreams
It is IMPOSSIBLE for you to do that with your current attitude
May I suggest you do yourself a favour and read books such as The Richest Man in Babylon, The Secret, As A Man Thinketh, Bob Proctor etc etc.

Greetings!!

The great Australian Dream of owning your own house will never be dead. It will not be easy to get into the housing market and it never was (not even for the boomers of which you seem to have some sort of issue with).

You may have read a report that shows the median house price in Perth at $490K some 12 times your earnings. I have found a house in Brunswick (near Burekup) that is up to 7 times you gross income (using your “boomer” data) ie $280K which says (using your logic) that there is housing in your own city that is similarly attainable to those of your parents/uncles/aunties day.

“How are we ever meant to afford THAT!!!!!!” The same way as everyone else does/did. Develop a strategy and exploit all the options that you have available to you that were not even available in the 90’s (lo doc loans, 106% finance packages, First Home Buyers Grant, syndicates with your mates, etc). Leave you parents money out of it unless you can work out a deal as part of your options. I would guess that like most “boomers” they had no assistance from their families either (dead or alive).

Perhaps you should consider another job to help create your deposit? That’s what I did. In fact, I had three jobs at one point because inflation was rampant in 1976 onwards to “the recession we had to have”. There was no way I could save up for a deposit without doing the extra hours/jobs.

The average wage in this country is closer to $65K and a typical factory worker in a medium sized business earns about $40K without overtime. Given that the average wage is somewhat higher than your earnings doesn’t that give you hope that there is bigger bucks out there? Go after it but it will mean trading more of your time. You may be better off getting creative with property isn’t that why you have gotten involved with PropertyInvesting?

Most kids of today “just don’t care” for the same reason as most kids didn’t care back in the day either. Your research clearly hasn’t pulled out th old adage of the “boomers” “tune in drop out” or words to that effect. They were the views of losers as “drugs” are the views of losers today. But don’t worry when the majority og boomers were tuning in and dropping out and smoking dope others were flat out developing their future. Guess what, they live very well in their own house and either have a business and/or a professional rewarding career and/or investments (properties/shares) or all of the above.

If you truly believe that “the dream” has been taken away from you then I challenge your belief mechanisms. I personally can’t believe that you have gone into debt in order to study for a qualification without a vision for what that qualification would mean for you in the future. You had a vision, right?

You’re staying at home longer because you have got it made there.

Thank your parents for letting you stay with them and offer to pay board as well (at least to 80% of the market rate) rather than “bagging” them out. My daughter and fiance have just bought themselves their first house in a Sydney suburb. They have taken out a mortgage of close to $400K to do it. He is a factory worker, she is a student pilot and works as a receptionist. He cleared a sizeable car debt first then saved and worked his ass off to do it. He is 24 she is 21. The difference between you and them can be summed up this way: you look at real estate and say “I can’t afford it” they look at the same thing and say “How can we afford it”?

“Houses are appreciating at a faster rate than peoples ability to save the deposit required”. This is no different to 1976 and it will be the same for your kids as well. Best you get into the water as quickly as you can lest you sink before you even start.

WHATS THE POINT!!!!!!!!!!!!!!!!!!!! Rising to the challenge just like you did to get your degree. It wasn’t given to you because someone thought you should have it and nor will anything else be given to you for that matter.

Happy future building.

Hi Pete Hutchy
I have finally stopped playing my violin after reading your pathetic post.
I was 14 when I started work in 1969 and I had nothing. I have worked very hard all my life, watched both my parents die when i was 21years old. They were middle class citizens, builder and home duties, and they died from over use of alcohol and cigarettes. It was hard for me at 21 to watch them die, then to find the cash to bury both of them. I then married and had 3 boys, we divorced 15 years later due to infidelities on the part of my ex-husband. I struggled for years to bring my kids up due to the smart tactics of my chartered account ex-husband. Now 17 years later, I am looking at 3 uni-educated boys (the last one now in his final year at uni). I have remarried and even with all the crap I have had to deal with in my past, I now own my own home (spent $202,000 to build it in 1996 and it is now worth $700,000 with a $175,000 debt that I have had to do to educate and look after my kids in the past- rent would be $600 per week; I own an investment property that cost me $120,000 to build and now worth $350,000 with a $69,000 debt – rent is $315 per week, and have just purchased another investment property worth $98,500 with a $98,500 debt – rent is $202 per week. All totally CF+. This took me 16 years to accumulate – not flash but all working well.

All of this was done with common sense, a lot of backbreaking hard work and a determination NOT to end up like my parents.

So I hope that when you are shooting up ice through your clean veins and you are lying on the dirty cement floor of a dark alley somewhere, that someone in your family loves you enough to bury you and get on with their lives. Because, you certainly sound like you destest people who worked hard and you now want someone else to do hand you something on a platter.

It’s out there – you just have to have the determination to go get it. Start slowly, buy something small and with the proper advice and learning tools, you will get there someday.

My advice is “stop whinging” – those older people have their hard luck stories, they just don’t dwell on them !!!!!!!

…………………….or buy a box of tissues and keep crying !!!

Janice Maxfield – Mackay Queensland[biggrin]

Hi Peter,
Sorry to hear that you feel that that way. You do have some valid points, but need to work out a solution. My son is 21 years old, works fulltime, is 5th year law student at university doing 3 – 4 modules per semester. He also has a HECS debt. He bought his first investment property last May 06 and then went on a trip to Europe in September 06 for 5 weeks. He finds solutions to any hurdles that may be blocking the things he wants to achieve. His property at present is negatively geared, but has a fairly good outlook for capital growth. He is currently looking at purchasing investment properties with me which can be positively geared. Granted my hubby and myself helped him with the deposit for his first property. Find someone who you can start investing with. Look for a solution. There are heaps of things you could look at to get a head start in the market. You don’t particularly have to purchase in WA. Brisbane is a great market at present. Start with an investment property first before purchasing a house for yourself. “In my day” I was a stay at home mum. I only entered the work market 5 years ago. Before I did, I had to go back to study to get certs like you to be able to land a job with a good income. We lived on one wage for 15 years. We had to make huge sacrifices to survive with 3 kids, feeding, clothing, educating etc. Sometimes eating rice, spuds, mince and sausages for months on end. I don’t want to lecture, but not all of us in ‘my day’, had it easy. Think positive and it will flow back to you. Setout to achieve your goals no matter what. Don’t let money, time or anything else stand in the way of what you want! Trust me I was where you are now for years. Read and educate yourself on ways to achieve your goals. YOU CAN DO IT!
Anne

ohh definitely half full![thumbsup2]

Romina and Luca (and bubba Nicolas)

Peter dont give up so easy. I bought my first property at 20 while earing about $25Kpa. I was a tight arse 100% of the time while saving my deposit. I was fortunate that I could live at home for free up until I bought a place but I also worked hard to save money.

I used to ride a bicycle to work in rain hail or shine to save $3 a day on petrol.
I use to make my own lunch every day to save $5-$10.
I use to cash and my holidays so I could go and work elsewhere.
I used to draw my living money (about 35% of my pay) out of the bank every 8 days so that every 7th week I would have double, and I could then save more.

Sacrifices must be made and risks must be taken for progress to happen.

I now work full time in a job with a wage a bit above average. I have $20kpa in passive income from my two properties. In the last 5 years I have aquired about $500k in equity and paid about $30k off loans. I will buy another or upgrade one of my properties in the next 18 months.

The opportunities are out there. There is a peice of gold somewhere just waiting for you to find it. The more rocks you look under the more gold you will find. You wont find your gold by sitting back smoking bongs and doing crack.

Peter, I have been 3 years out of university without successful employment. Yes $40,000 isn’t much but in a couple of years you will not be still on $40,000. I’ve given up on being employed as a graduate.
You should start off small buy a small unit to start with and work at paying it off. Then once your wage increases and your equity you will be able to sell and trade up / replace with a bigger place or buy a 2nd property.

Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.