Millionaire Says Millennials Can't Afford Houses b/c of Avocado Toast
Australian millionaire Tim Gurner thinks that millennials aren’t able to buy homes because they're wasting money on things like avocado toast.
He says, "when I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each," he told Australia's version of 60 Minutes over the weekend. "We’re at a point now where the expectations of younger people are very, very high. They want to eat out every day, they want travel to Europe every year. The people that own homes today worked very, very hard for it [and] saved every dollar, did everything they could to get up the property investment ladder."
I get his point, but isn’t it possible they simply have different priorities based on their skill sets and position in the market place?
Millennials generally don’t know how to cook, fix things, or budget all that well. They google it and figure it out but still… owning a house is a MASSIVE financial and time commitment. One that takes away from something they put a higher premium on: experiences. They travel because you only live once. Granted, at some point you have to buckle down and make something of yourself, but what’s the rush? Why not live your life?
“Yeah,” someone says, “live their life off mom and dad’s dime.”
That’s an assumption that often isn’t true. Most of the Millennials I know have jobs, work their butts off, and do their best in an economy that factually doesn't pay them well, even with useful degrees. They simply value travel, health, and their relationships more than physical things… except for their cell phone LOL.
Also, owning a home means putting down roots. It means you’re stuck. It’s hard to buy one, hard to sell one, and once you make that commitment you’re in that community for the long haul. Most of them do not want to make that commitment until they’ve solidified their career. Living in this region of the country, can’t we all understand that? It’s awesome here, but the job market isn’t great. Millennials have to keep their options open if they want to find success, and that includes moving away (sadly). That’s not a problem, that’s smart.
I have a feeling in the coming decade or so they will start buying homes. They simply are slow to the market. I always say you're not an adult anymore until after college… somewhere between 22-25 years old. Thin what you want of that but I believe it’s true. That means they aren’t buying until their 30s.
Now, to be clear, millennials have their fair share of issues. Too many of them have useless degrees and rather than prioritize what they are good at they go after their dreams. Sometimes those are the same, often they are not. But I don't think dropping Avocado toast and some travel is going to give them the ability to buy a house. Even if it does, I don’t see the problem… bankers aren't getting richer I guess.
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