Generation Rent in Sydney: I saved $6K in 6 years on $60k pa

[Sydneystache]

The person they chose as the case study in this article pisses me off

http://www.news.com.au/finance/real-estate/generation-rent-what-hope-does-a-nurse-on-60k-have-of-buying-a-house/news-story/2c48a4ee9aa75abc14f95b7cdebba007

Lives in a share house in the pricey area of Sydney, goes on o/seas holiday per year and managed to save a whopping $6K over 6 years. Yes, $6,000 on a $60,000 after tax income.

Dude, what did you do with the $300K? Rent is $11k pa x 6 = $66k. So still blew a lot.

And it isn't fair. Yeah spendypats unfair.

[HappierAtHome]

I just read that article and had the same thoughts.

Especially because if he's only earning $60k he's either not working full time, or he's refusing to work weekends or nights... Or not reporting his extra pay from weekend loading, maybe?

[sleepyguy]

LOL, $60k AFTER TAX, and a pathetic $6k savings after 6yrs!!!  I'll give him one thing, he's ONLY 30... plenty of time to clean up his act if he wants to get in better financial shape.

Complains about rent cost but "He admits he could have saved more if he hadn’t taken an annual trip overseas..."  Well at least he isn't in debt.

[Sydneystache]

Just read the comments and he is getting hammered by his poor savings. It really is a pretty poor example of housing unaffordability when the bloke they chose is a big spender:

"@4_budget 23 hours ago
Lets do the sums here: $60,000pa take home is $1153/week in the bank. He 'estimates' $11,000 is spent on rent: $211/week. That leaves him with $942/week. Some food: $100/week = $842/week left. Even if he spends a further $242/week on living that still leaves $600/week or $31200/year. Multiply that by 6 and allow for some interest and we get very close to $200,000. There is his deposit for a property.

He needs to sit down and write a complete budget (not estimations) and work out where all of his money is going. It is hard to save for a house, but it is still very possible."

"@Michael_Loome 2 days ago
People are upset because young people can't afford the Eastern Suburbs of Sydney? How about live somewhere else and commute like the majority?

How about you take your valuable profession to the country or remote Aboriginal communities where the govt will pay your cost of living / bump up your pay or it's cheaper to rent.

Hard to feel sorry for this person with so much going for them when other people have real issues. This also doesn't help the argument to get rid of negative gearing."

[MgoSam]

Wow, that's $20/week if you ignore returns on his savings.

Seriously, I hate this bullshit. From what I understand, housing prices in Sydney are high but actually give us real examples of people that are actually trying to buy a house and can't afford it and maybe then you'll get more sympathy.

[misterhorsey]

The person they chose as the case study in this article pisses me off

http://www.news.com.au/finance/real-estate/generation-rent-what-hope-does-a-nurse-on-60k-have-of-buying-a-house/news-story/2c48a4ee9aa75abc14f95b7cdebba007

Lives in a share house in the pricey area of Sydney, goes on o/seas holiday per year and managed to save a whopping $6K over 6 years. Yes, $6,000 on a $60,000 after tax income.

Dude, what did you do with the $300K? Rent is $11k pa x 6 = $66k. So still blew a lot.

And it isn't fair. Yeah spendypats unfair.

I don't know his full story, and newslimited isn't going to tell you it either - remember he's told his story to a journo who may have edited out less interesting tidbits, that might actually go some way in explaining his story.

I do have some sympathy for him in that he was lucky enough to have grown up and lived in the Eastern Suburbs, but he is also unlucky enough to have grown up in the Eastern suburbs so that if he has any desire to stay there and be comfortable he needs to go back in time and study to be a finance dude or something.  Not something useful, like nursing.

I think a city swallows itself if it prices out the ability of essential services workers to live reasonably close to where they work.  We aren't all on this planet to service the 1%

(I'm originally a westie - prices out there scare me too).

Having said that - it does sound like he's terrible with money and probably finds it hard to live the lifestyle that others around him are living. As Jacob from ERE once pointed out - people don't find it difficult to live on very little - what they find difficult is to live a life that is dramatically different from their peers. Something Jacob, and most people of MMM, obviously don't struggle with.

So yes, it does sound kind of bad - but I also a) can't trust anything coming out of news limited and; b) Sydney's property boombubble is the real bad guy, and the interrelated tax, regulatory, policies sustaining it - not some dude who can't say no to smashed avos.

I thought this article was a great insight into people who have no money sense:

https://www.wealthsimple.com/en-us/magazine/money-diary-anthony-bourdain

[Sydneystache]

(I'm originally a westie - prices out there scare me too).

Tell me about it! Got lucky to buy a flat in 2005 and since then prices have just become ridiculous. I actually thought prices in 2005 were ridiculous but in hindsight could have bought a house with my deposit then.

Re: the nurse bloke - keeping up with the Joneses in its worst form; the Bondi scene is overrated. Great in your 20s for the hedonistic lifestyle but if you're 30 and still sharehouse renting in Bondi or Coogee with a 6K savings pot, you gotta have a serious look at yourself what you want out of life 10, 20 years down the track.

There won't be too much sympathy for a 40 year old nurse with 12k savings living with 8 people in Bondi who WANTS/DREAMS of buying a $5M house. I don't think that nurse (notwithstanding News Ltd's journalistic standards) will ever want to live west of William Street or even Leichhardt.

My DH works as a cog for NSW Health and we both know a nurse (immigrant) who worked hard, lived at Cabramatta, moved with parents after a divorce, now has an investment propety for her retirement and is doing well. Her three kids have all flown the nest and all graduated with uni degrees, all with jobs but NOT their dream jobs. Her eldest son works as a miner in the central west and his plan is to work there for a few years and return to Sydney. He bought a house jointly a couple of years ago.

You work hard, you save hard, and like that ant in Aesop's fable, you reap the benefits. However, you have to be pragmatic and take a reality check on your dreams, and know what constitutes your own personal happiness - materialistic, intrinsic and otherwise. Alas, wanting to own an Eastern suburbs home is now on par as wanting to be an astronaut and going to the moon.

[Just Joe]

As Jacob from ERE once pointed out - people don't find it difficult to live on very little - what they find difficult is to live a life that is dramatically different from their peers. Something Jacob, and most people of MMM, obviously don't struggle with.

And social media makes it appear that everybody is rich b/c all we see are the high points in everyone's life. If a person bases their "reality" on what they see in social media then heaven/dog/spaghetti monster help them.