It was only a couple of weeks ago that young property developer Tim Gurner made headlines for mentioning that millennials should stop spending $4 on coffee and $19 on smashed avocado if they want to enter the property market. This was blown way out of proportion with a lot of people, including mainstream media, focusing on the cost of smashed avocado rather than the point Mr Gurner was making. I for one agree with Mr Gurner based on what I believe is meant in his words rather than what has been translated.
In my opinion the point about smashed avocado and coffee at phenomenal prices is more pointing the finger that millennials value there lifestyle ahead of purchasing a property! There is absolutely nothing wrong with that, prioritising holidays, fashion, food, going out, social events, etc is anyone choice however whinging or arguing the fact that its impossible to enter the property market is rubbish.
Rewind back through the generations and you will notice, especially with baby boomers, that going out was a rarity. Holidays most of the time were not taken unless on honeymoon and eating out and wearing the finest clothes were not something they would strive for. Working hard is another familiar point however thinking millennials are not working hard is harsh. With the employment rate still relatively low and opportunities in the work force harder by the day, its fair to say that the population now work just has hard.
So the choice for this generation (without the help of inheritances and parents) would be buy where you can afford! Easier said than done!! The reality these days show more and more people will be purchasing properties in areas they can afford not necessarily where they wish to live. This is not a terrible philosophy. In fact it helps put your foot in the real estate game especially if you are not willing to sacrifice your lifestyle. In Melbourne, for example, you can still live and pay rent in a suburb like South Yarra (close to the city, work, lifestyle events) whilst still purchase a home in Wollert, Werribee or Mernda.
The end game for this generation, if they are willing to sacrifice there lifestyle, will be to stop whinging and complaining and simply get into the property market. It might be some short term pain however I can assure from experience it will be most certainly long term gain!