In a bold statement that has sparked widespread debate, a 75-year-old man from Sydney, Australia, weighed in on the struggles faced by young Australians trying to enter the property market. With a wealth of S$1.7 million (AU$2 million), he shared what he believes is the root cause of the difficulty in saving for homes, particularly amid escalating property prices and the rising cost of living.

During an insightful conversation with a young reporter from Coposit, an innovative property-related platform, the baby boomer urged younger generations to rethink their spending habits. He criticized contemporary lifestyle choices, particularly the obsession with branded clothing and the frequent indulgence in costly café coffee, suggesting that eliminating such expenses could substantially boost savings.

“Back in my day, we didn’t prioritize name-brand clothes or spend AU$4 to AU$7 on coffee. We brought our own,” he recounted. He lamented how these seemingly trivial expenses add up, making it increasingly challenging for today’s youth to save for their future homes.

Despite his daughter's struggle as they navigated the property scene, he proudly stated that he did not financially assist them, preferring to instill lessons of budgeting and self-sufficiency instead. "They had to do it the hard way, but they learned valuable skills along the way," he explained.

Recalling his own journey, he shared that he began with a simple two-bedroom apartment 25 years ago, using its value to build a remarkable portfolio of properties. Today, however, he recognizes that replicating his success is daunting due to the current market's high prices. For instance, he pointed out that gathering a AU$200,000 (S$169,768) deposit for a property worth AU$750,000 (S$636,630) is a far cry from his experiences, as regular incomes struggle to keep pace with continually increasing property values.

Recent data paints a stark contrast to his time; back in 1984, the average loan amount was AU$42,277 (S$35,886), a manageable amount that has ballooned to AU$802,357 (S$681,073) by 2023. It was once just twice a person’s annual salary, whereas now it hovers at 6.4 times the average income—a considerable shift that exacerbates the woes faced by new homebuyers.

His assertion that there is “no cost-of-living crisis” ignited criticism on social media platforms, with many individuals stating that even after significant cutbacks, they still found it hard to save. Responses included tales of professionals, some earning six figures, still unable to afford homes.

Mortgage broker Jess Phillips weighed in, noting that while some clients indeed experience a crisis, she's surprised by their apparent willingness to spend excessively on luxury items, including AU$500 on takeout and AU$200 on television subscriptions. “The shopping centers are still buzzing, people are dining out, and holidays are still on the agenda,” she said, indicating a disconnect between spending habits and financial struggles.

As Australia's housing crisis deepens, the struggle between maintaining a certain lifestyle and saving for a home continues to inflame discussions about priorities and economic realities. The dialogue initiated by this Sydney man serves as a reminder of the generational divide surrounding money management and the changing landscape of financial responsibility.

*Will his advice resonate with future generations, or will the realities of today's economy drown out his simplistic suggestions? Only time will tell as the debate rages on!*