Tag Archive for Generation Y

Which cliff do I jump off: Buying Vs Renting?

buyingAs the eastern states grip for the yearly contest for the State of Origin title between New South Wales and Queensland, another battle which has waged for years on end is whether to buy or to continue to rent. I am confronted on a regular basis by friends who are unsure as what to do. “Mate, is now a good time to buy?” Everyone’s situation is different. Annual income, savings, whether its investment or going to be their home? What we can do is break it down for the Gen Y’s to help them see what works better for their situation.


Dead money, paying off someone else’s mortgage, whatever you call it, most people have rented a property. In a previous post I talked about the benefits of renting, paying particular focus on Victoria Park. With renting in general, it can be quite beneficial from a financial situation. The initial outlay is your bond (4 weeks rent) and the first installment (fortnightly or monthly). Far cheaper then a 10% deposit on a property. Another positive point is that you have greater choice in where you wish to reside. Having a budget of $300,000 to spend on a home really cancels anywhere of ‘coo-ee’ of the CBD or beaches but if you have a budget of $450 -$500 per week to spend on rent, the options which suburb you want to reside in greatly improve.

With the good comes the bad. Let’s face it, when you’re renting, you don’t own it. Having that sense of ownership and knowing it’s yours makes you appreciate it that little bit more. On top of that is the fact that with a market that is continually gaining, rents are only going one way? Finally, your tenancy can be terminated at a moments notice (30 – 90 days). Regardless if you have been a great tenant who pays their rent on time; it is always a lingering thought for anyone who rents.



I entitled this article which cliff to jump off? Lets face it, this is the biggest one. “The Great Australian Dream”, owning your own home, quarter acre of land with a Holden out the front. Times have changed since this was first raised in the 50’s and 60’s with urban sprawl and the demand for inner city living. But, the thought of owning your own property still remains a dream for all Gen Y’s. There is a certain notoriety for those under 30’s who own a home or an investment property. It’s a massive achievement. To be out of high school for maybe less then 10 years, get enough scratch together for a deposit and convince a bank that they should give you hundreds of thousands of dollars. Good job. Whether you purchase as an investment or your home, you are making money from day one. Over the last 12 months, the Australian real estate market has been in the spotlight with record prices being recorded throughout all metro centers.

So, we all want to buy a home and have our own slice of “The Great Australian Dream”, but why don’t we? Ahhhh, the million dollar question? The deposit. It’s tough work saving for that deposit. The median price for an apartment in Zetland for 2014 is just under $700,000. That’s a little bit more then the spare change you will find in the centre console of your car!!!



As I touched on earlier, everyone’s situation is different. Speak with people who you feel can help you make an educated decision. This article barely scratches the surface on the debate but it brings out some key factors which play on many young peoples minds. Depending on your goals and plans, if you are thinking medium to long term, buying may be the option which is better suited to you and short term, renting is the way to go. Regardless of where you sit and you take the plunge, remember to have thought this through carefully because it’s hard to go back once you have taken that step off either cliff.

The Millennials: Generation Y and our infatuation with Real Estate.

Gen yThe Millennials, Gen Y and my favorite, ‘everyone gets a trophy generation. Let’s face it; they have been branded many names by the generations which they have proceeded but are we really that bad?

Every generation has their pros and their cons, their positives and negatives. Currently, we are living in a technology ridden world where everything can be accessed via the palm of your hand and if it can’t? It will be shortly. Let’s face it, Millennials are at the fore-front of Social Media. They are the most marketing-savvy and advertising critical generation that has come through the ages. The concept of Social Media is the case in point. Social Media outlets such as Facebook, Twitter and Instagram have brought the world closer together and allowed people to communicate on different levels. Gen Y or ‘Millennials’ are naturally drawn to this way of communication as it allows us to communicate not only to people who we know, but to audiences on a larger level. My favorite story is how a friend of mine, also in real estate, sold a property via twitter. Imagine trying to explain that to the Baby Boomers.

I touched on how Millennials are attracted to this platform and I thoroughly believe that this can be put down to our generation being the most educated. It’s mandatory for every child within Australia to be gaining an education up until they are 16. With greater education ensures people to make better decisions in life for themselves but also the people around them. It also enables us to be more financially sound and to secure ‘The Great Australian Dream’.

Millennials grow up and what to have what our parents had and more. We want to own that house or that car but due to an ever expanding population, overseas competition and other external factors, it feels just that little bit harder. In the current real estate market, with prices sky rocketing, it feels that first investment property or future family home is moving further and further away. To help get the youth into the real estate market, ideas have been trust into the ring but by potentially deferring taxes such as stamp duty ensures that this generation has a chance to dip their foot into the real estate world. This maybe something that the governments have to consider to ensure that the millennials have a fighting chance in this market.

Gen Y’s battle: Being the Small fish in the ocean

small fishIt has always been a question on any young persons mind and I’m reminded of it time and time again from family, friends and clients…..”When should I get an investment property”.

For many Gen Y’s who are looking to dip their foot in the big ocean that is the residential housing market, it can be a daunting phase. Some people are lucky as they have the financial support of family however; many do not have this luxury at their disposal. As of late, Real Estate has been running hot and has been gaining a lot of media attention which has added fuel to the fire. This has ensured a booming end to 2013 real estate sector and a strong start to 2014.

Over the past couple of years, there has been an influx of overseas investors which has strengthened the market but is pushing the first home owners out of the market. It has always been tough to get that first property under your belt but with added competition with deep pockets, it has made it that much harder.

Buying your first property is not going to be easy. It’s a challenge. It’s a journey. It is something that you have never faced before. Just ensure you have the right support networks in place to assist you in making those decisions. These are different for every situation but just ensure you surround yourself with trustworthy people, the right information and the courage to take the plunge.

Finally, the fundamental network in this phase is the one you have always surrounded yourself with, it’s your family. They have nurtured you through the scrapped knees and broken bones and what’s not to say they wont assist you though this tough stage. It may not be financial help but it may be the little things which help this little fish find its way through the ocean and prosper.