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IMPORTANT // Please look after your loved ones, yourself and be kind to others. If you are feeling that the world is too hard to handle there is always help - I implore you not to hesitate in contacting one of these wonderful organisations Lifeline and Beyond Blue ... and I'm sure reaching out to our PRE community we will find a way to help. T.
A voice from Generation Y
- Thread starter pahoffm
- Start date
Tigertool said:Thanks mate.
I actually agree with you, as definitely the majority don't seem to pay attention to the future, nor the value of a dollar.
you appear to understand the concept of delayed gratification, so you will be fine.
I think the depression generation really understood the concept, the baby boomers mostly did, gen X sometimes did and gen y mostly don't.
Gen Y couyld do a lot of worse than reading "Rich Dad, Poor Dad". It'll be a lot more rewarding for them than complaining about negative gearing.
Tigertool said:I'm currently 20 and looking to leave home at 21. I'm employed by a financial firm in my town, on a low salary. I own my car that I paid for when my dad's novated lease ended. I have managed to put away about $25,000 (mainly in shares) so far and am trying to save more by opening a managed fund which I am contributing $500 a month to. I've got a long way to go for a deposit on a house but am trying hard to save what I can.
I do get jealous when friends have parents that bought them a car knowing considering how long it took me to save my money, while I watched those same friends p!ss their cash up against the wall.
I'm trying to make sure I have myself in a reasonable position for the future, but I am one of not many to be honest. It amazes me how much money my friends can bur without realising, but that just may be because I'm a massive tightarse. ;D
EDIT: I also pay board. Albetit a measely $130 a month, which I complain about to Dad so he doesn't up the price on me! (I know he won't see this post as he doesn't venture outside Dyer-Tribe.)
You're doing bloody well mate. I hope it all pans out for you.
I reckon your Dad probably wouldn't begrudge the measly $130 a month board. Maybe. ;D
I reckon he'd be proud that you're having a fair dinkum crack at it. You've got good values, inherited them and worked at them, most probably.
ps Who's your Dad?
tigersnake said:
Sorry guys, I was at work and looked up US wage figures by accident. Even at Average wages of $55,000 the multiplier is still just under 10 though. The environment is hardly benign. Current interest rates of 5% vs 13-18% do compensate quite significantly though.
I used 1984 as my comparison point because I have long held the belief that the biggest driver on Australian house prices is Capital Gains Tax, which was introduced in September, 1985, more specifically, the exemption on the family home which makes it the only growth asset that Australians can invest in which is free of CGT. This has skewed the Australian Property market. Our Government, of course, is addicted to CGT, whuch acts as a stealth Death Duty and pours huge revenue into the coffers.
evo said:
Thanks, and I definitely agree there!
willo said:You're doing bloody well mate. I hope it all pans out for you.
I reckon your Dad probably wouldn't begrudge the measly $130 a month board. Maybe. ;D
I reckon he'd be proud that you're having a fair dinkum crack at it. You've got good values, inherited them and worked at them, most probably.
ps Who's your Dad?
Thanks a lot, Willo! Here's hoping it does!
I think he doesn't mind the $130, but he likes to remind me that it is probably under market!
Dad is Jimbob. Not jb though. He has been pretty proud of his "Prima bomber" comment that got in the GoldPosts thread. He now lies saying it everytime he talks about the bombers at home!
Tigertool said:I'm currently 20 and looking to leave home at 21. I'm employed by a financial firm in my town, on a low salary. I own my car that I paid for when my dad's novated lease ended. I have managed to put away about $25,000 (mainly in shares) so far and am trying to save more by opening a managed fund which I am contributing $500 a month to. I've got a long way to go for a deposit on a house but am trying hard to save what I can.
I do get jealous when friends have parents that bought them a car knowing considering how long it took me to save my money, while I watched those same friends p!ss their cash up against the wall.
I'm trying to make sure I have myself in a reasonable position for the future, but I am one of not many to be honest. It amazes me how much money my friends can bur without realising, but that just may be because I'm a massive tightarse. ;D
EDIT: I also pay board. Albetit a measely $130 a month, which I complain about to Dad so he doesn't up the price on me! (I know he won't see this post as he doesn't venture outside Dyer-Tribe.
Good stuff, TT. Head down, bum up and save, save, save.
Just take care with shares and managed funds. Shares are growth assets, managed funds can be a combination of growth and defensive assets. Growth assets have long-term time frames of 5 to 7 years and are not suitable for saving for short-term goals.
Now where is that "This is general advice only. You should see a financial planner to ascertain how this applies in your circumstances blah, blah, blah" disclaimer. It goes without saying that no-one should rely on anything I post on PRE. It is three-quarters bunkum and one-quarter A-grade manure.
TOT70 said:
Kind of off topic, but I'm a big fan of death duties myself. Would be a great move. Considering the irrational electoral toxicity of it, which we can thank Joh B-P for, stealth is good IMO.
Tigertool said:
Good onya Tt. I reckon in the long run you'll have far better values and chance of success in life. Even if we could we wouldn't have handed things to our kids on a gold platter. They were brought up to appreciate the value and reward of working and saving for the things they wanted. All 3 bought their own first cars. We helped out with tyres, insurance, rego etc at times while they were at uni but that was largely due to the fact they didn't think it was their right in life to have their parents give them everything. If they expected/relied on that it wouldn't have happened. I think they're far better people for it. I'd give them the world if I could now but that's because they have such good values. To me helping instil a good work ethic, understanding of living within their means and an appreciation of earning your way in life is far more valuable than giving them money and possessions.
rosy3/23 said:
Thanks, Rosy. I definitely think it helps. Im sure your kids would appriciate it now as well. I have One friend in particular has EVERYTHING given to him, and I'm sure he will be in for a real shock once the real world comes a knocking. He's definitely what you call a brat.
TT there is hope after all for GenY. 8-
Like I said I hate tarring all with the same brush as there are plenty of young uns willing to do the yards. I do think it's changing too, the hand is being forced.
Good luck.
Like I said I hate tarring all with the same brush as there are plenty of young uns willing to do the yards. I do think it's changing too, the hand is being forced.
Good luck.
rosy3/23 said:
Cool rosy. I reckon a parents naturally wants to help their kids out, its the way of the world, but you have to be disciplined about it, on yourself I mean. I've seen a lot of parents who can afford to, and some who can't, give their kids everything. It does more harm than good and never ends well. The term isn't 'spoilt' for nothing.
Good work tigertool. I'm also gen y, and am also amazed with how many of our generation don't think of saving and instead blow thousands on holidays etc. I've recently finished my phd and have moved back to melbourne with my (now) fiancée to both start working after being at uni.
I left home at 19 to go to uni in a different state, and had to get by on pretty small amounts of money. I didn't have any free cash to splash on going out. Now that my fiancée and I are working full time, we can start to save, but it just seems so daunting, particularly with the wedding coming up in a month or two!
I left home at 19 to go to uni in a different state, and had to get by on pretty small amounts of money. I didn't have any free cash to splash on going out. Now that my fiancée and I are working full time, we can start to save, but it just seems so daunting, particularly with the wedding coming up in a month or two!
Sorry I'm a little bit late to the party on this thread but I also read the article at the time and thought it was an absolute belter. I also agree with Phantom that this is a big issue.
Personally I am only borderline Gen X/Y and I have no plans to buy a home in Australia any time soon so I am not in the same boat as the author; however I used to be and take a keen interest in this issue. I feel for people my age and younger that are looking to buy a home because it is a lot harder and than it was and the system is designed to make it that way.
People who suggest it is not harder to buy a home than it used to be either have not done the maths, are making stuff up or believe that paying off interest on a loan at this exact point in time (interest rates vary) is the same as owning a house. Many young people would welcome 18% interest rates if it meant that they could buy a home for only 3 times their annual income. Of course, those that now owe the bank half a million dollars are hoping like hell that this doesn't happen any time soon.
IMO the 'cry me a river' cliche is unhelpful, offensive and most importantly, ignores most of the issues highlighted in the article. These include:
• Underquoting wastes potential buyers’ time and gives people false hopes
• Negative Gearing (a topic on another thread), ‘first home buyers grants’ and other government intervention, inflates house prices and makes it harder for young people than it should be.
• Politicians do not want to address the issue (presumably because they are scared to upset the property and building industries and the huge number of property investors Australia now has) even though they have commissioned reports that have concluded that changes are necessary.
• The media constantly goes to property spruikers for ‘expert comments’ and always represent price increases as 'good' and price drops as 'bad'. The media clearly has a vested interest in property prices being as high as possible.
Regardless of whether or you think Gen Ys have it harder, easier or whatever, these are all real issues.
Re the bashing of Gen Ys on this thread generally, granted there are some Gen Ys that are reckless with their money but in many cases this is miss-judged and subsequently exaggerated by older people. When a young person says, ‘I can’t afford a house’ and in the same breath says ‘look at my new laptop’, of course there is going to be less sympathy from older people. After all, 20-30 years ago, buying a computer would have been a big setback for someone wanting to own a home. Today, $400 for a laptop is nothing when you are looking at a $400k mortgage and you are going to have to spend $200 per month commuting to work from it (because you are going to have to move a lot further out). There is much less incentive to save for a house when interest rates are low, house prices are high relative to wages and everything else is cheap. Expecting a young person today to give up gadgets to save for a house is almost like telling someone in the 70s, that if they give up listening to music for the whole year they will get a $40 gift voucher for a Rolls Royce at the end of it. Bit of an exaggeration but you get the point.
Of course baby boomers made sacrifices but the circumstances are miles apart from what people face today. My parents couldn’t afford to buy in Camberwell in the early 70s on one and a quarter average incomes so they had to compromise and look to the fringe of the city. They had to work very hard and didn’t waste a cent for the next two decades. The only difference was that the fringe of the city back then was Glen Iris; a suburb with massive blocks of land 10km from the city that was serviced by trams, buses, parks, shops, schools and about 4 train stations within walking distance. Try finding a ‘compromise’ suburb in Melbourne with even a fraction of the infrastructure that Glen Iris had in the 70s. Try finding a job within an hour’s commute of one of those suburbs. Try paying off the mortgage in 18 years on one and a bit average wages and 5 kids.
Like I say, I am lucky. I can work from anywhere and I don’t need to buy a home, but I think young people need to be stuck up for when it is so politically correct to be against them.
Personally I am only borderline Gen X/Y and I have no plans to buy a home in Australia any time soon so I am not in the same boat as the author; however I used to be and take a keen interest in this issue. I feel for people my age and younger that are looking to buy a home because it is a lot harder and than it was and the system is designed to make it that way.
People who suggest it is not harder to buy a home than it used to be either have not done the maths, are making stuff up or believe that paying off interest on a loan at this exact point in time (interest rates vary) is the same as owning a house. Many young people would welcome 18% interest rates if it meant that they could buy a home for only 3 times their annual income. Of course, those that now owe the bank half a million dollars are hoping like hell that this doesn't happen any time soon.
IMO the 'cry me a river' cliche is unhelpful, offensive and most importantly, ignores most of the issues highlighted in the article. These include:
• Underquoting wastes potential buyers’ time and gives people false hopes
• Negative Gearing (a topic on another thread), ‘first home buyers grants’ and other government intervention, inflates house prices and makes it harder for young people than it should be.
• Politicians do not want to address the issue (presumably because they are scared to upset the property and building industries and the huge number of property investors Australia now has) even though they have commissioned reports that have concluded that changes are necessary.
• The media constantly goes to property spruikers for ‘expert comments’ and always represent price increases as 'good' and price drops as 'bad'. The media clearly has a vested interest in property prices being as high as possible.
Regardless of whether or you think Gen Ys have it harder, easier or whatever, these are all real issues.
Re the bashing of Gen Ys on this thread generally, granted there are some Gen Ys that are reckless with their money but in many cases this is miss-judged and subsequently exaggerated by older people. When a young person says, ‘I can’t afford a house’ and in the same breath says ‘look at my new laptop’, of course there is going to be less sympathy from older people. After all, 20-30 years ago, buying a computer would have been a big setback for someone wanting to own a home. Today, $400 for a laptop is nothing when you are looking at a $400k mortgage and you are going to have to spend $200 per month commuting to work from it (because you are going to have to move a lot further out). There is much less incentive to save for a house when interest rates are low, house prices are high relative to wages and everything else is cheap. Expecting a young person today to give up gadgets to save for a house is almost like telling someone in the 70s, that if they give up listening to music for the whole year they will get a $40 gift voucher for a Rolls Royce at the end of it. Bit of an exaggeration but you get the point.
Of course baby boomers made sacrifices but the circumstances are miles apart from what people face today. My parents couldn’t afford to buy in Camberwell in the early 70s on one and a quarter average incomes so they had to compromise and look to the fringe of the city. They had to work very hard and didn’t waste a cent for the next two decades. The only difference was that the fringe of the city back then was Glen Iris; a suburb with massive blocks of land 10km from the city that was serviced by trams, buses, parks, shops, schools and about 4 train stations within walking distance. Try finding a ‘compromise’ suburb in Melbourne with even a fraction of the infrastructure that Glen Iris had in the 70s. Try finding a job within an hour’s commute of one of those suburbs. Try paying off the mortgage in 18 years on one and a bit average wages and 5 kids.
Like I say, I am lucky. I can work from anywhere and I don’t need to buy a home, but I think young people need to be stuck up for when it is so politically correct to be against them.
tigersnake said:
Im a bit of a hard bastard when it comes to some aspects of rearing kids. My 14 yo just got his first job scrapping chicken fat off trays at the IGA for $9.20 an hour. I am absolutely rapt that he is starting with a horrendously sh!t job. I said to him "I hope you scrape chicken fat for 2 years" and felt a bit like MrMyagi.
heres the hook, we live on a farm out of town and I have to drive a 50km round trip to get him to work for 4 hours, so i charge him $10 'transport costs' a trip. I will do this until he accepts it, stops complaining and actually offers it on payday, unsolicited :hihi
forgot to add the punch line. I went into the bank in the small town where my kids bank too and often go in to withdraw $5 to buy some chips or something and the teller said "you know, youve got the loveliest kids, all 3 of 'em". I swelled with pride and quietly claimed some credit for sending a few decent people out into the world.
