In a bold statement that’s causing waves across Australia, a 75-year-old man from Sydney has offered straightforward advice to the younger generation grappling with the challenges of entering the property market. With an impressive wealth of AU$2 million (S$1.7 million), he points fingers at spending habits rather than the so-called cost-of-living crisis.

During a candid interview with a young reporter from Coposit, a property-buying platform, the octogenarian highlighted stark lifestyle differences between his generation and today’s youth. The rising costs of living and skyrocketing property prices have left many disheartened; however, he firmly believes that young Australians can improve their financial situations by reassessing their priorities.

He lamented about the obsession with branded clothing and the ritual of frequent café visits, which he claimed are draining the wallets of younger Australians. “You buy your designer t-shirts and shoes, which we never even considered back in my day,” he remarked. He also emphasized how his generation managed without expensive mobile phones and streaming services, which have become staples of modern life. “The pressure to keep up with lifestyle trends must be tough when also trying to save for a house,” he noted.

When it comes to his own children, he proudly declared that they had to fend for themselves in the property market; he and his wife focused on instilling lessons in budgeting and financial independence. “They learned to do it the hard way, but that’s what taught them value,” he remarked.

The Journey From Modest Beginnings to Wealth

The 75-year-old's wealth journey is particularly captivating. He began with a simple two-bedroom apartment, leveraging its increased value over time to create a robust property portfolio that once consisted of ten homes. Despite acknowledging that it’s significantly more challenging for today’s youth to save for property due to soaring prices, he emphasized the need for discipline in spending.

In 1984, home loan amounts were considerably lower, averaging AU$42,277 (S$35,886), a stark contrast to today's average loan size of AU$802,357 (S$681,073). While interest rates were higher back then, the astronomical rise in property prices and loan amounts has made saving for a deposit exceedingly difficult. The stark reality is that saving AU$200,000 (S$169,768) for a AU$750,000 (S$636,630) home seems out of reach for many young Australians.

However, the financial planner's remarks that “there is no cost-of-living crisis” have stirred mixed reactions online. Critics have skewered him on social media, pointing out that even those who cut back on expenses still find it challenging to save. Many shared their dismay at his oversimplified perspective, declaring that they have adopted strict budgets yet still can't afford to buy homes.

Mortgage broker Jess Phillips weighed in on the debate, acknowledging the cost-of-living struggles faced by certain demographics while expressing surprise at others’ spending habits, like AU$500 monthly on takeout or AU$200 on streaming subscriptions. She remarked, “It doesn’t seem like they’re in a crisis to me.”

The Bigger Picture: A Changing Financial Landscape

This ongoing discourse about financial responsibility, spending habits, and property ambitions underscores a fundamental question: are today’s young Australians too focused on their lifestyles? Or is the property market genuinely out of reach for a generation facing unprecedented economic pressures? As public opinion splits on this issue, it’s clear that the conversation surrounding wealth, responsibility, and the path to homeownership is only just beginning.

Stay tuned for more insights and ongoing discussions about how different generations are navigating the evolving economic landscape!