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sideysid

If you want to buy a house, don't buy avocados...

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http://time.com/money/4778942/avocados-millennials-home-buying/

 

I know this is aimed at across the pond, but house prices are a world wide issue in major cities.

Articles like this, that help the belittling of the younger generation will only have one result.

They will never have the opportunities that the boomers had and the resentment will only grow.

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He started off in 2001

chart-3.png

with $34,000 given to him by his grandad

http://www.news.com.au/finance/work/leaders/melbourne-developer-tim-gurner-took-a-punt-on-a-suburban-gym-and-built-a-property-empire/news-story/b6139b69077c6368c423395b9426dc51

He says: “The good developers will shine and the guys that do Ford factory product will really struggle,”

Assuming he is comparing to Ford cars? Ford is a company that makes things (cars) that can be made by any competitor (unlike land), hence potentially relatively unlimited supply in a competitive market with limited customers.

Tim is property developer that started off in 2001.

Edited by Arpeggio

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5 hours ago, sideysid said:

http://time.com/money/4778942/avocados-millennials-home-buying/

 

I know this is aimed at across the pond, but house prices are a world wide issue in major cities.

Articles like this, that help the belittling of the younger generation will only have one result.

They will never have the opportunities that the boomers had and the resentment will only grow.

I often see people with the lowest income spend more and save less.  Not just because they cannot afford to save, but because any saving in their position is unlikely to give  any material results.  I.e. they may avoid coffees and avocados all they like but they will still never afford to buy a house, as they watch the house prices increase much faster than their savings.

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8 hours ago, Bear Hug said:

I often see people with the lowest income spend more and save less.  Not just because they cannot afford to save, but because any saving in their position is unlikely to give  any material results.  I.e. they may avoid coffees and avocados all they like but they will still never afford to buy a house, as they watch the house prices increase much faster than their savings.

Exactly. Without hope there is none.

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16 minutes ago, hotairmail said:

When the carrot is no longer visible, the donkey stops walking.

Quote

 

Very true.....the future is no longer bright nor orange and edible.... energies on surviving what the present has to throw at you.;)

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9 hours ago, Bear Hug said:

I often see people with the lowest income spend more and save less.  Not just because they cannot afford to save, but because any saving in their position is unlikely to give  any material results.  I.e. they may avoid coffees and avocados all they like but they will still never afford to buy a house, as they watch the house prices increase much faster than their savings.

Even at $19 per Smashed Avocado Toast portion that is probably 20,000 portions to buy a house, so over 500 years worth.

So giving up avocado toast will hardly help, and do we really want 100% of income going into the property market? Tim might!

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Had a conversation like this with the missus' parents...

I pointed out that their combined income of £4000 on a flat of £5000 in 1978 was heaven compared to today. As funnily enough the same flat was for sale a couple of years ago at £165,000, and to keep a similar income multiple we would need approx £132,000 combined income.... 

 

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1 minute ago, Monkey said:

Had a conversation like this with the missus' parents...

I pointed out that their combined income of £4000 on a flat of £5000 in 1978 was heaven compared to today. As funnily enough the same flat was for sale a couple of years ago at £165,000, and to keep a similar income multiple we would need approx £132,000 combined income.... 

 

Almost but not quite true.....work it out again factoring in the interest rate then and now.;)

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I am pretty fat but even i would struggle to eat the number of avocados required to cover the 50,000£ extra asked for between 2016 and present asking prices.

This gentleman unfortunately has not seen a recession hats off to him being able to ride highest and fastest on the wave of credit.  My curse/benefit has always been that parents lost a lot of money in the 80/90s crash and i remember it never fully going "all in" on property.

It states in the article he has made 420 AUS million good on him and I hope that he has taken some chips off the table otherwise when reality returns he will be filleted pretty quickly.

Credit and speculation is like being a drug dealer.... you dont get high off your own supply and if he genuinely believes that its hard work and acumen without giving some credit to .....china/credit

 

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A healthy diet will contribute to a longer lifespan too. Boomers are less healthy than their parents generation. I referenced that before, look it up if need be.

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Yeah, life expectancies are starting to drop I think, largely due to the modern lifestyle (extremely sedentary) and diet (ever more processed foods with lots of added sugar/salt).

 

It's strange - everything seems to be going backwards for the average person.  Health, wealth, education, freedom, privacy.  Yet few seem to be worried about it - I certainly don't detect any mass kickback against the regression in quality of life.  Mass media, social media, the celebrity culture, all the distractions seem to have dulled the public's senses.

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