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

Wanderer78

davo10 wrote:

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.

Oh I completely agree, it's making me very angry that many people are unable to even get on the property ladder, and actually may never be able to. It's best for society as a whole if people could but prices are spiralling out of control, we seriously need to address this immediately

The_Conductor

Heres a link to the interview from the Guardian- which also has the 60 minutes interview streamed on it:

https://www.theguardian.com/lifeandstyle/2017/may/15/australian-millionaire-millennials-avocado-toast-house

The_Conductor

Wanderer78 wrote: »

Oh I completely agree, it's making me very angry that many people are unable to even get on the property ladder, and actually may never be able to. It's best for society as a whole if people could but prices are spiralling out of control, we seriously need to address this immediately

Sigh- I *hate* the expression 'Property Ladder'.
In an Irish context- we are almost solely building 'Starter Homes' that are geared First Time Buyers.
The term 'Property Ladder' implies you buy at rung no. 1 on the ladder- and climb the ladder as your circumstances change.
This is nigh impossible- if there are not units being built at the various rungs on the 'ladder'- which is not happening- and this is how, according to the CSO, we have over 600,000 people, living in owner occupied property, which is wholly or partially unsuited to their needs, as they didn't see themselves living in it long term- however, that's where they've found themselves.

Its quite amazing that the property hype from the noughties is back with such a vengeance- honestly, I didn't expect to see the fervour being displayed by many people- for many a long year yet.

Wanderer78

The_Conductor wrote:

Sigh- I *hate* the expression 'Property Ladder'. In an Irish context- we are almost solely building 'Starter Homes' that are geared First Time Buyers. The term 'Property Ladder' implies you buy at rung no. 1 on the ladder- and climb the ladder as your circumstances change. This is nigh impossible- if there are not units being built at the various rungs on the 'ladder'- which is not happening- and this is how, according to the CSO, we have over 600,000 people, living in owner occupied property, which is wholly or partially unsuited to their needs, as they didn't see themselves living in it long term- however, that's where they've found themselves.

Great point, I must stop using it myself, we truly need to stop thinking of housing in this way, it's slowly destroying our society

CJhaughey

In a functional society which actually looks after its citizens, housing is a basic need and the state through its various branches should provide at least a basic level of housing for people that don't want or can't buy a house.

The notion that the whole property market should be monetized has lead to the current situation where if you don't have a house then you are at a severe disadvantage and at risk of becoming homeless.

The time to build affordable houses should have been in the last 5 years, yes the state was broke but starting a building program for state houses could have been done and land was at rock bottom prices.
Not to mention that it may also have kept tradespeople in employment that have had to emigrate.

NAMA should have used its capital to fund this.
Unfortunately there are a huge number of vested interests in the property market and in Government who do not want to see affordable housing as it would affect their business interests.

neonsofa

bubblypop wrote: »

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!

Also, by the time you get to bidding etc., the price is nowhere near that figure advertised, and in many cases you're outbid by the county council.

The_Conductor

CJhaughey wrote: »

Unfortunately there are a huge number of vested interests in the property market and in Government who do not want to see affordable housing as it would affect their business interests.

Just wondering on your thoughts on this.
Any landlords I know would throw a party if they heard that significant social housing was going to be built in their area- and they'd also be far more inclined to upgrade their properties than they are at present. What, in your opinion, is the agenda behind the non-provision of social housing?

pilly

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.

Look, you're obviously a very conservative person and fair play to you, that's your personality and you shouldn't change it but honestly advising others to save hard so they can buy in the midlands is little bit OTT.

My last piece of advice to anyone who's young would be to save hard and buy a place where they're from. I currently work with people who have lived and worked in the same village all their lives and I have to say they are mind crushingly boring because they've no outside view of the world, it honestly is like they live in a bubble. They are actually shocked when they see a black person (I'm not kidding here).

I've encouraged all of my children to travel as much as they can for as long as they can. It's so character building in so many ways.

Michael D Not Higgins

The_Conductor wrote: »

Sigh- I *hate* the expression 'Property Ladder'.
In an Irish context- we are almost solely building 'Starter Homes' that are geared First Time Buyers.
The term 'Property Ladder' implies you buy at rung no. 1 on the ladder- and climb the ladder as your circumstances change.
This is nigh impossible- if there are not units being built at the various rungs on the 'ladder'- which is not happening- and this is how, according to the CSO, we have over 600,000 people, living in owner occupied property, which is wholly or partially unsuited to their needs, as they didn't see themselves living in it long term- however, that's where they've found themselves.

Its quite amazing that the property hype from the noughties is back with such a vengeance- honestly, I didn't expect to see the fervour being displayed by many people- for many a long year yet.

It's driven by spiralling rent costs and low interest rates. The old "rent is dead money" phrase is out in force again.

Fian

My wife and I bought a house and moved in together when we were young - in fact we moved in with each other in rented accomodation while we were in college. We didn't ever go travelling the world in our youth, which we both regret tbh.

On the other hand we ended up buying a house in 1996, which would probably be out of our reach now even with our significantly higher income. The house would sell for 5 times what we paid for it in 1996, although that is comparing ?price with €price. Kids started coming along a few years later so possibility of heading off to travel just disappeared. 1996 was just before the boom which lasted until 2007 so we were extremely fortunate to have bought before the market started climbing.

Even so, though undoubtedly we are glad we did stay in Ireland and buy when we did, we do both wish we had spent a year travelling the world together. But I guess you can't have your cake and eat it, all our kids are now in their teens so in another decade or so maybe we can go and have that adventure together, albeit we will be in our early 50s rather than early 20s.

James Bond Junior

Fian wrote: »

My wife and I bought a house and moved in together when we were young - in fact we moved in with each other in rented accomodation while we were in college. We didn't ever go travelling the world in our youth, which we both regret tbh.

On the other hand we ended up buying a house in 1996, which would probably be out of our reach now even with our significantly higher income. The house would sell for 5 times what we paid for it in 1996, although that is comparing ?price with €price. Kids started coming along a few years later so possibility of heading off to travel just disappeared. 1996 was just before the boom which lasted until 2007 so we were extremely fortunate to have bought before the market started climbing.

Even so, though undoubtedly we are glad we did stay in Ireland and buy when we did, we do both wish we had spent a year travelling the world together. But I guess you can't have your cake and eat it, all our kids are now in their teens so in another decade or so maybe we can go and have that adventure together, albeit we will be in our early 50s rather than early 20s.

I did the save hard and buy the house thing at 26. I'm 29 now and it's now I'm doing the travelling, went on one holiday so far this year and I've 4 more coming up. It was worth it in my opinion as if my partner and I were renting our own place we wouldn't be able to afford to travel and enjoy life like we are now. It depends on your priorities I suppose.

Wanderer78

James Bond Junior wrote: »

I did the save hard and buy the house thing at 26. I'm 29 now and it's now I'm doing the travelling, went on one holiday so far this year and I've 4 more coming up. It was worth it in my opinion as if my partner and I were renting our own place we wouldn't be able to afford to travel and enjoy life like we are now. It depends on your priorities I suppose.

it sometimes depends on your date of birth unfortunately

Mickiemcfist

Wanderer78 wrote: »

James Bond Junior wrote: »

I did the save hard and buy the house thing at 26. I'm 29 now  and it's now I'm doing the travelling, went on one holiday so far this year and I've 4 more coming up. It was worth it in my opinion as if my partner and I were renting our own place we wouldn't be able to afford to travel and enjoy life like we are now. It depends on your priorities I suppose.

it sometimes depends on your date of birth unfortunately

Spot on, I'm 27 now & am on a decent salary and am right now in the position to buy a decent house in South Dublin......at 2012-2014 prices. 
To be honest I had neither the money to go travelling or the money to save when I was in my early 20's but just studied part time & worked to afford that. Ultimately I'll be happy if I can get on the property ladder before I'm 32ish, If I want to go travelling then, I can save for that after & rent out the house while I'm gone. Gotta say though, house would be my priority, although my parents could never afford to buy so that probably influenced me.

Lumen

Mickiemcfist wrote: »

If I want to go travelling then, I can save for that after & rent out the house while I'm gone

And then never get it back. :pac:

karenalot

I saved €250 a month for 5 years from the age of 18-23, which would be nothing to a lot of workers these days but was hard for me as I did it with jobs through college and backpacking. My mother drilled it into me to always save something no matter how small.

Bought my first house at 23 with the 15k deposit my savings gave me and continued on travelling as renting out mine and the spare rooms covered a good chunk of the mortgage.

While I think the article mentioned is OTT I can see his point somewhat. I was the only one of my friends to save from a young age. Most of them are now just getting into buying now 10 years later and are left bewildered when they realise they cant just save a deposit in 12 months and go buy the house they want.

neonsofa

karenalot wrote: »

I saved €250 a month for 5 years from the age of 18-23, which would be nothing to a lot of workers these days but was hard for me as I did it with jobs through college and backpacking. My mother drilled it into me to always save something no matter how small.

Bought my first house at 23 with the 15k deposit my savings gave me and continued on travelling as renting out mine and the spare rooms covered a good chunk of the mortgage.

While I think the article mentioned is OTT I can see his point somewhat. I was the only one of my friends to save from a young age. Most of them are now just getting into buying now 10 years later and are left bewildered when they realise they cant just save a deposit in 12 months and go buy the house they want.

The deposit isn't even the issue for most people I know, they have that ready to go and have done for years now, building on it with each year that passes, it's actually getting approved for a mortgage that is the issue for most people I know. And those that are unfortunate enough not to have a partner can just forget about ever owning unless they can save up a much higher deposit than the usual 10%, in order to offset the difference between what they can borrow and what they need to even buy the most modest of properties.

hytrogen

The_Conductor wrote:

Sigh- I *hate* the expression 'Property Ladder'. In an Irish context- we are almost solely building 'Starter Homes' that are geared First Time Buyers. The term 'Property Ladder' implies you buy at rung no. 1 on the ladder- and climb the ladder as your circumstances change. This is nigh impossible- if there are not units being built at the various rungs on the 'ladder'- which is not happening- and this is how, according to the CSO, we have over 600,000 people, living in owner occupied property, which is wholly or partially unsuited to their needs, as they didn't see themselves living in it long term- however, that's where they've found themselves.

Michael D Not Higgins wrote:

It's driven by spiralling rent costs and low interest rates. The old "rent is dead money" phrase is out in force again.

It's also driven by settling people, people becoming too content in their four walls and roof resigning to the "well this is it I suppose for the next 40odd years" introvert​ mentality after commiting like a pilgrim so long to the sacrement of "saving for the future" instead of feeling the hunger to make money on an investment.
Together with the media fixation on first time buyers stats brought out by those daft crowd it would put anyone into their armchair for life!
A house is but a house until you make it your home

pilly

neonsofa wrote:

The deposit isn't even the issue for most people I know, they have that ready to go and have done for years now, building on it with each year that passes, it's actually getting approved for a mortgage that is the issue for most people I know. And those that are unfortunate enough not to have a partner can just forget about ever owning unless they can save up a much higher deposit than the usual 10%, in order to offset the difference between what they can borrow and what they need to even buy the most modest of properties.

That's the people I feel sorry for the most. There's so little hope for young single professionals now.

professore

I would advise anyone to travel, but that doesn't necessarily mean taking a loan and a year out to "find yourself".

Worked my way through college and left Ireland and lived in a European country for 5 years, working at a professional level. My job had a fair bit of European travel so got to see lots of Europe, even was in Poland before they got here

Got a Morrison green card too but due to circumstances (girlfriend) didn't take it up.

Came back in 98, rented for a year and bought a house in 99 with my wife with a 92% mortgage, it's worth at least twice what we paid for it and will have it paid off in 2 years. Already had a kid by that stage, so with the crappy tenancies here renting is really bad for families.

I too find people who never went anywhere crushingly boring. They only see things one way.

Could I have lived at home, saved money, and bought a cheap house? Sure. Would I have been happy? No way.
[EDIT : Not dissing the OP, to each their own. He would probably find me a pain in the ass]

hytrogen

pilly wrote:

That's the people I feel sorry for the most. There's so little hope for young single professionals now.

Well society is designed for you to co-habit, and sure ask Rapunzel, it gets awefully lonely up in that bell-tower in Grand canal dock

OldMrBrennan83

This post has been deleted.

C Montgomery Gurns II

bubblypop wrote: »

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

I'll do you six in one postcode if you like.

http://www.daft.ie/dublin-city/houses-for-sale/dublin-15/?s%5Bmxp%5D=200000&s%5Bmxb%5D=3

Of those areas, only the first two results would be from areas of significant notoriety (Fortlawn and Corduff), with the Westway section of Corduff tending to have a quieter rep than the rest of it. In the boom time I would say, at its height, a house in the area would have went for 380K. To read some of the stuff people post here you would swear some reasonably sedate parts of Dublin were West Baltimore. There are cottages for sale in the inner city for more than twice this figure that are slap bang in neighbourhoods with chronic addiction issues (aren't something like one third of Mountjoy inmates from the North IC, despite its relatively small population), yet investors and hipsters are seemingly queuing up to buy them. I do see ex corpos in some very hairy parts of the DL Rathdown area going for 380K, it seems insane money given the area.

bubblypop wrote: »

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!

Some of these houses have been on sale for months. It doesn't exactly scream a shortage.

We seem to have differing definitions of what a "decent" area is. I'd regard an area as "decent" if it has existing, but generally minimal anti social behavior.

Some people here seem to regard thee minimum definition of "decent" as being Castleknock and better.

dasdog

duffman13 wrote: »

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.

Indeed. Why spend money on avocado on toast when you can get it free with a $595,000 townhouse in Brisbane? I get his point about saving but I paid my way around Oz via a very well paid IT job in Sydney. They so reliant on China's continuing growth, have low interest rates and have a large number of overseas investors (Asia mostly). They need to change from the reliance on hard commodity exports soon.

gctest50

dasdog wrote: »

.....


................. on avocado on toast ...

Whoever started that needs to die.
Slowly - while being chewed on by their own cat


Taking advice from an Australian property developer ?

Australia is screwed - mining boom turning to dust

Property developer ? Lol - like asking a coke dealer what you should invest your Christmas bonus in

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

SEPT 23 1989

See the world

You won't remember eating beans on toast saving your money to give to the grubby parasites lying on your deathbed

andekwarhola

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 !!!

There's going to have to pay just as high rent anyway unless they doss with their parents forever or sleep under a hedge.

gctest50

Anyway avocado boy is just looking for sympathy:

“I spent every night on my hands and knees sanding back the floors, painting, renovating and working on"

The wuss never heard of a floor sander


His boss fronted him the money :

“My first investment property was an apartment bought for $180,000 in St Kilda and I was fortunate enough to have my boss at the time approach me to renovate it while he fronted up the money.”



http://www.thejournal.ie/avocado-toast-housing-3392003-May2017/

messy tessy

gctest50 wrote: »

His boss fronted him the money :

“My first investment property was an apartment bought for $180,000 in St Kilda and I was fortunate enough to have my boss at the time approach me to renovate it while he fronted up the money.”



http://www.thejournal.ie/avocado-toast-housing-3392003-May2017/

Ah here. Sure I could easily become a tycoon with other people fronting up the money. I'm sure :P

I don't think there was anything massively groundbreaking in what he said anyway

wordofwarning

neonsofa wrote: »

The deposit isn't even the issue for most people I know, they have that ready to go and have done for years now, building on it with each year that passes, it's actually getting approved for a mortgage that is the issue for most people I know. And those that are unfortunate enough not to have a partner can just forget about ever owning unless they can save up a much higher deposit than the usual 10%, in order to offset the difference between what they can borrow and what they need to even buy the most modest of properties.

I don't understand your post. Your friends have a deposit, but aren't getting approved for a mortgage as it not big enough?

Your friends have a deposit, but so far its not enough?

Cookie_Monster

The Australian market is something else, apartments in Melbourne or Sydney go for millions and millions, it's madness.

Of course it totally depends on where you live, I moved to New Plymouth 6 years ago and we're already building our second house, it's reasonably affordable and easy. Never would have done that in Dublin because Irish planning is a cluster****, never mind financing. It's not always just about the money