60 Minutes: “When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each”

Confused about the property market? Can’t afford to get in? Can’t afford to get out? Well you’re not alone. Surely, getting and keeping a roof over our heads should not be this hard. But the housing crisis continues to defy all attempts at a solution. It gets more shambolic and divisive by the day. The haves against the have-nots, rich versus poor, even old against young. This week on 60 Minutes, the Nine Network’s Finance Editor, Ross Greenwood, gets some blunt advice from those who should know the answers: Australia’s property billionaires.

Check out the full interview here – /www.9now.com.au/60-minutes/2017/extras/latest/may/helter-shelter

 

Peter Overton: Confused about the property market?  Can’t afford to get in?  Can’t afford to get out?

Well, you’re not alone.

Surely getting and keeping a roof over our heads shouldn’t be this hard.

But the housing crisis continues to defy all attempts at a solution.

It gets more shambolic and divisive by the day.

The haves against the have-nots; rich versus poor; even old against young –  tonight the Nine Networks finance editor Ross Greenwood gets some blunt advice from those who should know the answers: Australia’s property billionaires.

[Music]

Ross Greenwood: They’re known as the “Now generation” –  pre-Millennials, now in their 20s and 30s who lives comfortably in their parents houses with a fully stocked fridge, and free Wi-Fi.

But there’s one thing this generation with everything can’t get: their own home.

[Music]

Tim Gurner: Here we’ve got a project, we were 78 apartments we actually had so many combinations, such as downsides, we actually ended up with 68 apartments so…

Ross: Tim Gurner is an exception.

As Australia’s newest construction mogul he’s selling apartments as fast as he can build them.

Tim: In locations like this, we sold this out in 48 hours. We launched another 100 meters away we sold out overnight…

Ross: Just 35 Tim’s amassed a personal fortune worth almost half a billion dollars.

He started with nothing and he’s upfront about Australia’s housing problem.

Although his solution is exactly what you’d expect an ambitious property developer to say…

Tim:  We can’t fix affordability by creating further demand.

We have to create supply.

It’s a very simple mathematical equation – if supply can exceed demand, we’re going to see affordability become more realistic.

Ross: He’s one of the big winners in the runaway property market the latest entrant onto the Aussie Rich List last year delivered luxury apartments worth almost a billion dollars to the inner city of Brisbane and Melbourne.

There’s a type of apartments ordinary first-time buyers can’t dream of owning but Tim says expensive city housing isn’t anything new.

And that his generation needs to stop whinging and start saving…

Tim:  When I was trying to buy my first time, I wasn’t buying smashed avocados for 19 bucks and four coffees of $4 each

Ross: So you reckon that’s real?  That people, actually young people, actually end up just spending their money and then whinge about the fact I can’t get into the property market?

Tim: There’s no question it’s real.

I think until the generation realizes that the people that own how homes today worked very very hard for it, saved every dollar, did everything they could to get up the property market.

It might be you might have to buy an investment property first, you might have to share with mum and dad.

You might have to buy with a friend; but you’ve got to get your foot in the door and just slowly to get up the ladder…

 

Housing Affordability and Superannuation

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