Young Aussie exposes the huge problem with his generation

A young property investor has issued a harsh reality check to young people trying to get a foot in the market but aren’t willing to compromise to stay within their budget.

Jack Henderson, 27, bought his first property at 18 while working in construction and living at home in Western Sydney. At 21, he moved to Newcastle and opened his buyer’s agency, Henderson Advocacy, in 2020. Now, he owns 15 homes. 

Mr Henderson believes that buying a home is more achievable than many people think, but it requires greater sacrifice. 

He often sees young Aussies refuse to buy in less desirable suburbs because they want the best immediately. 

One three-bedroom, one bathroom home in Bidwill sold earlier this year for $730,000 – but he claimed most young Aussies today won’t consider such a buy because it’s 46km west of Sydney. 

‘My parents, they started in a place called Bidwill, it’s near Mount Druitt,’ he said.

‘That’s where they started, probably paid $50,000 or $60,000 at the time in that same house.

‘Now it’s worth $500,000 or $600,000, maybe $700,000.

‘They went from Bidwill to Wilberforce where they bought something for $180,000 and they sold that $180,000 house for $575,000 and bought something for $630,000 – they sold the $630,000 house for $2.2million.

‘Now they’ve retired and that’s a 40-year journey, but that’s what they could afford at the time.

‘My mum grew up in housing commission and my dad grew up alone – their situation couldn’t have got any worse. But they started where they could afford.’

Mr Henderson attributed his parents’ housing success to the fact ‘they didn’t overextend and they just built slowly’.

‘But in 2024, people won’t do that. Everyone’s entitled. Everyone wants this and that and they don’t want to f**king work for it,’ he said.

‘Why is Afterpay so popular? Why is Zip Money so popular? Why are all these luxury brands?

‘People want to perceive like something they’re not.

‘I’d love to live in a waterfront in Point Piper but I can’t afford to. That’s the reality.’

Mr Henderson bought his first home, a two-bedroom apartment in Coogee, for $720,000 at the age of 18

He believes a large part of why young Australians struggle to buy their first property is the need to keep up with ‘Instagram life’.

‘It’s not cool to say that you live in a certain suburb when it’s not glamorous like everyone wants,’ he told Daily Mail Australia.

‘I think the the biggest issue is people want their cake and they also want to eat it too. They also want to travel to Europe once a year and drive the best car.

‘You’re going to make sacrifices regardless, so you can either choose to be young and make sacrifices or you can choose to be old and make sacrifices.’

As for how young Aussies can get ahead and set up a ‘good life’ for themselves down the track, Mr Henderson recommended saving for a deposit as soon as possible.

‘I would recommend first home buyers live in their first property because you get to take advantage of the incentives – in New South Wales there’s a five per cent deposit, no lenders mortgage, you don’t pay stamp duty,’ he said.

‘Where you buy your first property is unlikely to be where you’re going to buy your last property.

‘I grew up in a place called Wilberforce which is 65km northwest of Sydney – you can still buy properties in and around that area for around $700,000.

‘We bought a house in Ipswich for a client last week for $480,000. It’s 40 minutes from Brisbane CBD.

‘It’s not the most glamourous area, but it’s a start.’

As for why Mr Henderson likes to lay the advice on thick for young people, he warned it only gets harder to buy property later in life. 

‘As you get older and you get further down the track, you have more commitments,’ he said.

‘It can be harder to borrow money from a bank when you’re renting, have a child and maybe you’re a single parent – it’s all relative.

‘So the earlier you do it, the less of that stuff you’re likely to have and the easier it is, that’s just fact.’

National home values rose half a per cent over the four weeks to July 18, according to CoreLogic’s daily index, down from a 0.7 per cent increase logged in the same period last month.

The property data company’s economist, Kaytlin Ezzy, said easing growth likely stemmed from stubbornly low consumer sentiment knocked around by still-elevated inflation. 

A rise in advertised stock levels in some markets was also playing a role, she said.

‘With many household budgets already stretched by the high cost of living and increased debt-servicing costs, it’s likely some potential buyers are holding off and delaying purchasing decisions until the outlook for interest rates becomes clearer,’ she said.

This had likely reduced demand and taken some heat out of the real estate market, the economist explained.

Two stronger-than-expected monthly inflation readouts prompted some economists to push out their timelines for interest rate cuts.

Much is riding on June quarter inflation data out later in the month, with warnings a disappointingly strong result could even put another interest rate hike back in play at the Reserve Bank of Australia’s August meeting.

The slowdown in dwelling values was most pronounced across houses, with units less sensitive to market conditions.

Compared to mid-sized capitals, which have been growing strongly for some time, prices in Sydney were cooling faster.

‘Affordability continues to be an important determiner for the pace of growth, with the more affordable end of the market showing more resilience to the elevated interest rate environment,’ Ms Ezzy said.

Brisbane, Adelaide and Perth did see the pace of home price growth tick a little lower through early July, hinting at the first signs of easing demand.

Renters are also seeing light at the end of the tunnel, with the number of vacant rental properties rising nationwide.

Vacancy rates are now sitting at 1.3 per cent, according to SQM Research, with capital city rents lifting just 0.1 per cent in the 30 days until July 12.

Research director at the firm, Louis Christopher, said renters would still have a while to wait for material softening in the market but the ‘the days of 10-20 per cent plus annual rental increases have come to an end’.

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