Property-tycoon-says-generation-needs-start-saving.

divillybit

http://www.dailymail.co.uk/news/article-4504456/Property-tycoon-says-generation-needs-start-saving.html

An interesting article about an Australian property developer and his advice to young people aspiring to buy a house which was featured on The Last Word on Today FM earlier on.

It just resonated with me as I saved hard for the last few years and meant I was in a really good position as a young first time buyer to buy a good house for myself - albeit at the bottom of the market, and in the midlands where its much more affordable to buy. I have definately missed out on the 'life experience' of going travelling after college I suppose, but instead I opted to stay in Ireland and I got working as the recession hit and developed the savings ethic towards purchasing my own house and avoid taking out a big mortgage which in the economic downturn caused so much distress to people paying off mortgages on properties that were in negative equity. But because of my saving hard ethic it has really set me up well in that I will have the property paid off in the near future..

Its just something worth keeping in mind for a young person starting out their working life that having a good savings ethic will very much stand to you when you decide to buy a place of your own

Brego888

Being good at saving is good for buying a house. Mind blown.

Pawwed Rig

It is something that is not often considered where younger people are concerned. Travelling for a year is astronomically expensive when you aggregate the money spent and lost earnings. It will easily set you back 5 years savings wise especially if debt has funded the trip.

HONKEY TONK

divillybit wrote: »

http://www.dailymail.co.uk/news/article-4504456/Property-tycoon-says-generation-needs-start-saving.html

An interesting article about an Australian property developer and his advice to young people aspiring to buy a house which was featured on The Last Word on Today FM earlier on.

It just resonated with me as I saved hard for the last few years and meant I was in a really good position as a young first time buyer to buy a good house for myself - albeit at the bottom of the market, and in the midlands where its much more affordable to buy. I have definately missed out on the 'life experience' of going travelling after college I suppose, but instead I opted to stay in Ireland and I got working as the recession hit and developed the savings ethic towards purchasing my own house and avoid taking out a big mortgage which in the economic downturn caused so much distress to people paying off mortgages on properties that were in negative equity. But because of my saving hard ethic it has really set me up well in that I will have the property paid off in the near future..

Its just something worth keeping in mind for a young person starting out their working life that having a good savings ethic will very much stand to you when you decide to buy a place of your own

I don't think that's good advice. Young people should experience life and enjoy it while they are fit and healthy.

Anything could happen tomorrow

Life is too short not to enjoy it while you can

worded

I considered this idea but got quickly bored

I opted for a hedonistic life style fuelled by alcohol and wimmins

What a blast !

Blacktie.

Pawwed Rig wrote:

It is something that is not often considered where younger people are concerned. Travelling for a year is astronomically expensive when you aggregate the money spent and lost earnings. It will easily set you back 5 years savings wise especially if debt has funded the trip.

Ye I'm ok with being behind five years with the experiences I had.

Yourself isit

A better idea.

Cheaper housing. More of it.

notharrypotter

Pawwed Rig wrote: »

It is something that is not often considered where younger people are concerned. Travelling for a year is astronomically expensive when you aggregate the money spent and lost earnings. It will easily set you back 5 years savings wise especially if debt has funded the trip.

Opportunity Cost.

wordofwarning

HONKEY TONK wrote: »

I don't think that's good advice. Young people should experience life and enjoy it while they are fit and healthy.

Anything could happen tomorrow

Life is too short not to enjoy it while you can

I think is very much a hierarchy of needs. I would rather have an apartment funded with savings at 26/27 than a mind numbing job of picking fruit in Australia or other ****ty jobs revolved around drinking in an Irish bar which is the dream for some.

Saving is about having a higher standard of living tomorrow. This notion of life today, as there might not be tomorrow is one of the reason why 35/40 people are moaning having no pension, savings for a house etc.

Yes anything can happen tomorrow. But if you look at the fact you need money for retirement, purchasing a house etc. Why make decisions on something you can't quantify ie something tomorrow?

duffman13

Pawwed Rig wrote: »

It is something that is not often considered where younger people are concerned. Travelling for a year is astronomically expensive when you aggregate the money spent and lost earnings. It will easily set you back 5 years savings wise especially if debt has funded the trip.

It really depends on the individual, I saved for two years to go travelling and came back with more money than I left with which put me in a good position. I was away for two and a half years and saved my ass off in Australia for 6 months, while working and travelling around there. Did some more travelling and picked up some more work on the way.

The other side of it would be that if I came back with no money a few grand in debt I still don't think I'd have any regrets.

The guy in the article owns a property empire which he started not from savings but an inheritance. Fair play to him for being hugely successful but he didn't start with zero. Also his advice is trying to basically fuel an already heated real estate market in Australia. Buy a property and get on the ladder is very reminiscent of 10 years ago in Ireland.

C Montgomery Gurns II

A young couple these days in Dublin on a combined 50K can buy a house worth 195K (of which there are plenty, in decent areas), assuming they pass the 2K stress test or whatever, and have saved up 17K, which is not hard if you live VERY frugally for a year. They can go as low as140K for a 3 bed if they know/ are prepared to risk some of the capital's less salubrious estates.

190K house for a mortgage of circa 170K. Mortgage of somewhere over 6K per year, very tops 600 euro per month- to rent the property would cost, at least, 1400 per month.

Ten years ago couples in a similar financial position were being sold the same property for 350K and 1200 per month. Main difference was they needed fook all deposit to get going with.

It baffles me how the media and the public somehow think first time buyers are worse off now than in 2007 or so.

wordofwarning

wordofwarning wrote: »

I think is very much a hierarchy of needs. I would rather have an apartment funded with savings at 26/27 than a mind numbing job of picking fruit in Australia or other ****ty jobs revolved around drinking in an Irish bar which is the dream for some.

Saving is about having a higher standard of living tomorrow. This notion of life today, as there might not be tomorrow is one of the reason why 35/40 people are moaning having no pension, savings for a house etc.

Yes anything can happen tomorrow. But if you look at the fact you need money for retirement, purchasing a house etc. Why make decisions on something you can't quantify ie something tomorrow?

But people can experience the whole world without having to pick fruit in the outback or work in a Aussie bar. Or drink in an Irish Pub for that matter!
I actually have a good pensionable job, I'm in my 40s, have plenty of savings & Tbh I couldn't care less about the pension. I don't care now about money I may have in 25 years time. I'll just move somewhere cheap to live. Hopefully on a beach somewhere sunny & hot!
Life experience is worth so much more than having a 3 bed semi somewhere in the Dublin suburbs.

C Montgomery Gurns II

C Montgomery Gurns II wrote: »

A young couple these days in Dublin on a combined 50K can buy a house worth 195K (of which there are plenty, in decent areas).

Can we have links to these houses less than 195k in decent areas please?

Fol20

wordofwarning wrote: »

I think is very much a hierarchy of needs. I would rather have an apartment funded with savings at 26/27 than a mind numbing job of picking fruit in Australia or other ****ty jobs revolved around drinking in an Irish bar which is the dream for some.

Saving is about having a higher standard of living tomorrow. This notion of life today, as there might not be tomorrow is one of the reason why 35/40 people are moaning having no pension, savings for a house etc.

Yes anything can happen tomorrow. But if you look at the fact you need money for retirement, purchasing a house etc. Why make decisions on something you can't quantify ie something tomorrow?

I see what your saying but I have to say I completely disagree with what your saying. Life is what you make of it and when your young. Travelling is a brilliant eye opener and experience I will never forget. I went travelling for a year and a half and although the opportunity cost provided me with a lower salary on returning and costed me even more in a missed investment. I have no regrets as the memories And experiences I brought back are priceless. At the end of the day a nice house,nice car etc are all materials and are tools there so that you can enjoy your life. Don't get me wrong I dream of having a nice large house for my family in the future and I'm a little different in that I have some assets already but I still only view all materialist items as tools for me to either A( make me feel more self confident about my self worth) or B so that I can enjoy my life. It's a means to an end as when you pass away you will leave earth the way you entered it and all of the niceties in life will be much less important.

You are partly right where people still need to be pragmatic in their approach to life and plan ahead also but at the end of the day. Life is there to be lived in the short span of time you have to enjoy it

elperello

bubblypop wrote: »

Can we have links to these houses less than 195k in decent areas please?

I just did a quick search on Daft.
There are currently 74 houses for sale in Dublin between 175k and 200k.
Seems to me like a small number for a city the size of Dublin.

I'm not in the market but only a handful would appeal to me.

elperello

elperello wrote: »

I just did a quick search on Daft.
There are currently 74 houses for sale in Dublin between 175k and 200k.
Seems to me like a small number for a city the size of Dublin.

I'm not in the market but only a handful would appeal to me.

Well you said there are 'plenty' under 175 in decent areas in Dublin.
So 74 houses in the whole of Dublin is a very small number, I'm not sure how many you imagine are in actual decent areas?

Sorry, it wasn't you, it was a different poster. I'm interested in his replies!

divillybit

In my case I've no regrets that I didnt go travelling and passed on going to all the festivals and gigs and made do with a modest car. People in their 20's who are working away dont always appreciate that those are the years you will have the most disposable income as you'll not be paying off a mortgage or most likely not have childcare costs so its the few short years that they can save alot and it will set them up well for the future...or it has done for me anyways. I just preferred to save and for me it has worked out in that I'll get my main asset paid off in my early 30's. Fair play to people that take out mortgages for 25 or 30 years. I just wouldnt be comfortable with that.

NinetyTwoTeam

This guy got 34k from his parents to buy his first property.

I'm sick and effin tired of pr#cks like this saying that smartphones and takeaway coffees are stopping my generation from being able to buy houses. Every single one of my peers who bought a house got at least some money from their parents to do it, and/or were allowed to live at home for long periods of their adult life so they could save without paying rent.

The class you're born into is the number one deciding factor of where you'll end up. A quick Google will bring up studies to prove this.

The cost of living has skyrocketed in relation to wages. Many people work hard and are still unable to save because renting is so expensive.

doc22

divillybit wrote: »

In my case I've no regrets that I didnt go travelling and passed on going to all the festivals and gigs and made do with a modest car. People in their 20's who are working away dont always appreciate that those are the years you will have the most disposable income as you'll not be paying off a mortgage or most likely not have childcare costs so its the few short years that they can save alot and it will set them up well for the future...or it has done for me anyways. I just preferred to save and for me it has worked out in that I'll get my main asset paid off in my early 30's. Fair play to people that take out mortgages for 25 or 30 years. I just wouldnt be comfortable with that.

:rolleyes:

What Bull on so many levels? You seem to want to justify your life choices which is fine.

In your 20's is the time for traveling, and going festival is a hundred euros not a mortgage.

People in 20's have most disposable income? With rent and low starting salarys I don't know how.

And modest car? most young people use public transport and can't even afford a car.

NinetyTwoTeam

The 'tycoon' has already been caught out that he didn't buy his first property with money saved by skimping on breakfast, have a look on twitter. He got handed the money from relatives.

It's like Donald Trump saying he built a successful business empire all by himself from nothing. A lot of gullible people believe it, but it isn't true and most of the pictures these guys paint about their backgrounds are built on BS.

These are delusional people who were born on 3rd base and go through life thinking they hit a triple. (Sorry for the baseball analogy)

If you want to save and can do it, great. But idolising these phonies is fooling yourself twice: they didn't get rich by saving the odd fiver, and you probably won't either.

It's in the interests of the rich to keep the rest of us thinking that being a hard little worker and saver is the way into their club, when really it just ensures they keep employees chained to their jobs, chasing that property carrot. A property tycoon who wants people to have more money for property? Imagine that!

If all the young people are spending so much money on avacodo toast instead of houses why doesn't he sell his property and invest in avacodo farms?

The_Conductor

If you listen to some of the interviews on ABC and 7 from Australia that he has given- he is lashing out at 'youngsters who are more interested in buying $20 avocado toast and 4 coffees in hipster cafés', and implying that their hedonism is a love of avocado toast and should be discouraged at all costs. (I have no idea what the hell the story is with avocado toast- though my Mexican colleagues assure me its an American import that features, along with drinking in the Cinco de Mayo 'celebrations').

The guy is full of BS- and has something against youngsters having coffee and some sort of posh toast- and is implying that if they didn't eat/drink- that they'd have deposits for their first homes within 24 months.

Honestly- its remarkable that he hasn't been called on it before now.

Google his Australian interviews- they're actually quite funny.

pilly

There's plenty of things I regret from my youth but not saving is definitely not one of them.

We spend enough of our lives chained to a desk for most of the week.

Youth is definitely something that's supposed to be misspent.

Wanderer78

pilly wrote:

There's plenty of things I regret from my youth but not saving is definitely not one of them.

pilly wrote:

We spend enough of our lives chained to a desk for most of the week.

pilly wrote:

Youth is definitely something that's supposed to be misspent.

Agreed, life's for living. They wanted us to be wage slaves, check, then they wanted us to be debt slaves, also check! Live life folks, as its all a bit of a scam

davo10

I listened to the piece about this on the Matt Cooper show yesterday evening. I agree with most that your youth is for living and the last thing on my mind when finishing Uni was to start saving for a house.

But in fairness, he wasnt quite saying that everyone should start saving immediately and avoid expensive avocado toast and barista coffee, what he said was that he couldn't understand people giving out about not being able to afford a home while at the same time spending a lot of their disposable income on expensive luxuries. Effectively he was saying that if you want something, you have to make sacrifices to save. On the other hand, if you don't want to buy, party on.

I'm sure the podcast is up on the today fm website.

Pawwed Rig

Wanderer78 wrote: »

Agreed, life's for living. They wanted us to be wage slaves, check, then they wanted us to be debt slaves, also check! Live life folks, as its all a bit of a scam

Different people want different things from life. Neither are right or wrong.

Wanderer78

davo10 wrote:

But in fairness, he wasnt quite saying that everyone should start saving immediately and avoid expensive avocado toast and barista coffee, what he said was that he couldn't understand people giving out about not being able to afford a home while at the same time spending a lot of their disposable income on expensive luxuries. Effectively he was saying that if you want something, you have to make sacrifices to save. On the other hand, if you don't want to buy, party on.

The only problem is, our economic systems are based on flaky flawed theories and models that are truly designed to indebt us as much as possible, as soon as possible. Ignore all this nonsense, live life and enjoy it. Living by this kind of thinking makes for very unhappy people

Pawwed Rig

Wanderer78 wrote: »

The only problem is, our economic systems are based on flaky flawed theories and models that are truly designed to indebt us as much as possible, as soon as possible. Ignore all this nonsense, live life and enjoy it. Living by this kind of thinking makes for very unhappy people

While providing luxury the likes of which our anscestors could only have dreamt of.

Hector Savage

So young people OP should just sell their souls to the bank, to get a 350k piece of **** house in Athlone to commute to Dublin every day for work - great advice !!!

davo10

Wanderer78 wrote: »

The only problem is, our economic systems are based on flaky flawed theories and models that are truly designed to indebt us as much as possible, as soon as possible. Ignore all this nonsense, live life and enjoy it. Living by this kind of thinking makes for very unhappy people

That's your perspective, but owning a property for most inevitably means borrowing from a lender, so if that is indebtedness by design, it is your decision to accept that design if you want to.

Rents now seem to be higher than mortgage repayments would be on the same property so owning may actually be cheaper than renting. Also, most parents of new borns are in the 20-35 age bracket so owning a house when you have a family is certainly advantageous particularly when it comes to putting down roots and staying in the same area for family/schools etc.

It all comes down to what you want from life and when you want it. I think when you get older you wish you enjoyed your youth more, but I think when you are young and carefree you don't always see the challenges ahead.

davo10

Hector Savage wrote: »

So young people OP should just sell their souls to the bank, to get a 350k piece of **** house in Athlone to commute to Dublin every day for work - great advice !!!

It's not advice, it's an opinion which applies only to those who want to buy a house. As an earlier poster said, there is nothing groundbreaking about saying that if you want to buy a house then you have to give up some luxuries to save money. If you don't want to live in Athlone, don't, but the opinion in the peice was that if you don't save, don't give out that you can't afford a house in Dublin.

Wanderer78

Pawwed Rig wrote:

While providing luxury the likes of which our anscestors could only have dreamt of.

It's only 'stuff' I'm afraid, when your economic systems cannot provide adequately the most important necessities for all, and causes serious, possible irreversible environmental damage which has the potential to lead to catastrophic problems for future generations, you gotta ask, are they actually working? I think not!