Ahh now I see why you reacted to my other post on alcohol. If they were the best years why didn't you continue living like that?
Absolutely no idea what you are trying to imply here and I suggest you read and let sink in the rest of my post.
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Ahh now I see why you reacted to my other post on alcohol. If they were the best years why didn't you continue living like that?
Travelling and experiencing the world in my mid-20s was the best time for me. But I also saved and starting buying properties in my late 20s/early 30s. I know people who bought when they were 21 and have been stuck in the same old sleepy city ever since. Sure, I may have lost out on some capital gains, but as someone said, the memories I have over these people are priceless.
Be aware that the Australian Bureau of Statistics says that about 10% of first home buyers buy their home with cash outright, no mortgage. This has been the case for the past decade.
This fact is not well publicised but shows that homes are really quite affordable in our community.
All that statistic tells me is that there are parents willing to give money to their children to buy a home.
or a 40 yr old living at home paying no board...........believe you me ive seen it
Enough to make up 10% of first home buyers? Improbable. People getting money from parents to buy a place is much more probable.
I thought I would provide the link from the Australian Bureau of Statistics with regards to first home buyers without a mortgage.
http://www.abs.gov.au/ausstats/[email protected]?OpenDocument
Unfortunately, the demographics and characterstics of first home buyers without a mortgage are not defined. Most of the article focusses on FHBs with a mortgage.
Still, most people associate home purchase as being done with a mortgage and how allegedly difficult it is. Therefore, I always like to point out that many buyers do it without a mortgage even with their first home.
Enough to make up 10% of first home buyers? Improbable. People getting money from parents to buy a place is much more probable.
I think too, that saving to buy a house outright is not anywhere near as common as gifting cash to buy outright.
If the majority of these buyers get the money from family, how exactly does it prove that property is affordable? If it's 10% of FHBs, a decent number, what's more probable? That they saved the money, or the money came from family?
Indeed because cash saved is all after-tax money whereas money gifted is usually via an equity gift from the parents' property that is not taxed.
We really don't know how the 10% of FHBs buy their house outright. It does prove that property is much more affordable than is generally portrayed by the media. One if people can save the median price of 500k for a house, it must mean that houses are not that expensive, relative to income. Two, if families can give them money, again, it must mean that houses are quite cheap and affordable.
Why does it have to be either one or the other? A little discipline, a little planning and you can have it all. Instead of just travelling in a gap year block, work overseas for a few years instead and travel between jobs and on holidays. Especially when the exchange rate works in your favour, you can experience the world, build your resume AND make money and invest. All at the same time.