Not a lecture, not a boomer rant, genuinely asking because I watch my kids do it every time we visit and I can't quite work out the mechanics.
Both our kids are in Sydney. Late twenties, early thirties, good jobs, smart with money as far as we can tell. And they're fine, they're doing okay, but I see what they pay in rent and what they spend on a casual lunch and I come home to the Gold Coast quietly grateful I bought my house thirty years ago when buying a house was a thing a person could do without a spreadsheet and a small miracle. We visited last month. Took them out for dinner, nothing fancy, just a mid range place they suggested. Looked at the bill and understood immediately why they pack their lunch.
I'm not here to tell anyone what things cost in 1987. I know that's not helpful and I know it's not the same and I know comparing then to now misses the point entirely. I'm just genuinely curious how people make it work.
Do you have a system? Did you move further out than you wanted to? Did you make peace with renting forever or are you still holding out hope? Did you consider leaving Sydney entirely and decide the city was worth the cost?
Our kids have never complained, not once, which either means they're fine or they've learned not to mention it in front of us. Possibly both.
Serious answers welcome.
Mildly horrifying answers also welcome.
Honest question – how do young Aussies afford to live in Sydney right now?
byu/Individual_Lime_110 inpersonalfinance
Posted by Individual_Lime_110
4 Comments
Most people just life in an endless spiral of never having enough money for everything. Many people in their 20s now experience insane debt evictions vehicle repossessions you name it until they tap out what money they have and go back home. Many have given up buying house or anything super expensive and just live in the bare minimum. I was basically broke up until last year when I turned 27 and started making 140k up for 75k which was more money than I remember anyone in my family making and I just feel okay.
I notice the worst inflation happened when Oz opened up after covid. Immigrants came in like there was no tomorrow. First hit was rental, insane price, long queue, then the rest is just collateral.
Of course the housing price has been stubbornly high since at least a decade ago, and it’s due to various reasons.
I believe more can be done on overall housing planning, particularly in Sydney. Build more, adjust the policies and so on.
For young adults, getting a house is like winning a jackpot.
I think a lot of people are essentially living paycheck to paycheck. Saving for a house seems impossible – so why save?
It’s surprising how little money people think they might need for an emergency fund. I’ve seen anywhere from 3-8k, when realistically the older you get and the less you’re able to rely on your parents, it’s easily 3-5x that.
Why don’t you ask your kids…?