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What a wonderful country we live in when even a 21 year old labourer and his 20 year old partner (a hairdressing apprentice) can afford their own dream home!!!
You will always need to make sacrifices to buy your first home- I talk to an older guy at my work who managed to scrounge together $35k to buy his first home in Sydney in the early 80's and he had to make similar sacrificies.
As you can probably tell, I am one of those who do not believe houses are overpriced. I currently own the apartment I live in and am looking to purchase an investment property in a few months and I also have had to make sacrifices. But I believe sacrifices are always necessary, particularly if you are in your early 20's and buying property.
Cheers,
LukeQuote from the article;
Mr Beezley, a 21-year-old building labourer, said he was working up to 75 hours a week to pay off their $340,000 house-and-land package as quickly as possible.
It was part of a plan to upgrade to a bigger and better house in about five years time.
End Quote.
Although i highly commend this couple for having a go and looking toward their future unlike a lot of other people their age, i think that $340K is a lot for a first home buyer…
Instead of starting off with a 'House and Land' package, maybe a 2 bed unit for around the $250K mark would have been a better first purchase ?
Eg. Do young people really need to be workaholics or do they need to start off with something a little more modest and then upgrade in a few years…
They set themselves a goal and reached it – good on them I reckon.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
My view is not complimentary I’m afraid – how silly!! What a lot of pressure to put on yourselves and your relationship, they may regret being forced to be so mature so young.
I’m with Matt – why not baby steps, an older smaller unit, not the new house and land package.People are like dogs. They will work very hard to get what they want. It's good to set goals in life and to reach for them.
Today's people need to be workaholics regardless, not necessarily just to pay off a mortgage. The day and age of people retiring in their early 40's is officially over for the younger generations, considering the cost of living, competition amongst each other (and even with those from other countries who will work harder and for less) and their spending habits.
Some people would rather party till their 80 than buckle down and save for the bigger things in life. And that's a personal choice. There isn't a right or a wrong. So long as people get what they want by setting goals and working towards them, it's a good thing.
It sure sucks not to be able to shop or go out if you're paying off a mortgage. Which kinda makes me glad that I neither shop nor go out anyway, not even on my own free will.
This is going to have a flow on effect.
Employers are going to find it hard to find lower paid employees in city locations .This was happening in Sydney and also in Silicon Valley in the USA.
Especially when you see offers for renting a house in a country town in outback Australia NSW for a dollar a week for 3 years.I agree $340K is a big first step and the article does not indicate that they have paid off the house yet
Of course they would need to furnish the house, have 1 or 2 vehicles, electronic goods, holiday budget, living expenses etc etc etcJust that hubbie working 75 hours per week which equates to
7 days per week – 11.5 hr days – not sustainable for health and relationship over even short term
6 days per week – 12.5 hr days – too tired to be romantic and have kids, which might be beneficial?
5 days per week – 15 hr days (6am to 9pm) – why be in a relationship?Now Mattt is working 75 hours per day on a labourers wage – after tax dollars go to normal living expenses and loans above etc
Chloe is working as a hairdressing apprentice and would earn a low wage.A good story however I cannot see that house being paid off quickly
Any mortgage brokers on the forum who could crunch the numbers?
I agree that they should not have bought a house and land package and started off small. Then they could have bought something closer to the 100k mark and payed that off. When Chloe finishes her apprenticeship and secures a better wage they could buy the house and land package, Rent it out, claim the losses to help pay off the PPOR, That way someone else is paying for their dream home.
jontapp wrote:5 days per week – 15 hr days (6am to 9pm) – why be in a relationship?Think of all the loving they can do on the weekend!
Who says that Chloe is an apprentice, or a hairdresser. Gen Y women expect a lot more. Better house, better clothes better other half, so why no a better job. Who says Chloe has agreed to move in with Matt before she has secured full time employment?
Just saying….
I am in the process of watching a Chloe and Matt at the moment and the questions are not 'woe, how will I afford it?' the questions are 'how can we afford it?' There seems to be a think outside the square attitude. I don't know if all gen y will come to this question and be able to think outside the indentured slave box.
Seems like gen y may throw a spanner in the works by staying at home and trying to pay off a big hit of the mortgage. Then they can buy where they want to.
The new dinks – lahdinks- living at home double income no kids.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeDWolfe wrote:Seems like gen y may throw a spanner in the works by staying at home and trying to pay off a big hit of the mortgage. Then they can buy where they want to.The new dinks – lahdinks- living at home double income no kids.
D
Nicely said. Gen Y's sometimes get a bad rap not saving enough, not working hard enough and then spending too much. There are some however who will do whatever it takes to ensure a comfortable future. They may look at the struggling pensioners of today and decide it's time to put their foot to the pedal and accelerate their way towards financial independence.
'Lahdink' is a fantastic term, although I feel more like a 'lahsink' at the moment. After all, I don't need a $20K wedding celebration to set me back. On that note, it appears that in delaying their moving out, Gen Ys also delay getting married and starting a family.
I like the acronym lahdink
The link to the article says Chloe is an apprentice hairdresser – true, she maybe coming to the end of her apprenticeship at the age of 21.
Checking out the homecentre website it seems to target first home owners & the first home owners grant – so they will have to live in it for a period of time.
Even if they do plan on renting it out a new home is going to take a bit of expense getting it gardens/landscaping suitable for renting.
Anyhow I still believe it is a lot of pressure for such a young couple, and I hope their health doesn't suffer
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