Love this! For those who missed the house price controversy doing the rounds last month, here’s a catch up. Demographer and columnist in The Australian, Bernard Salt, came out lambasting millennials and Gen Y hipsters. He said if they want to save the deposit for a house they should give up buying $22 serves of smashed avocado at trendy cafes.
He ended up with a food fight on his plate with social media lighting up. The property-challenged generations retaliated stating the obvious that it would take 22 years and 8000 serves of Smashed Avocado to save 20% on the $890,000 median priced, Sydney home.
Meanwhile, cafés in Sydney have responded by offering ‘home saver specials’ and some lenders are now promoting ‘smashed avo mortgages’. It’s even gone global, with the BBC offering comparisons for buyers in Hong Kong, New York and London.
Here in Byron it will take even longer to buy a home by not eating out at breakfast. I checked with hipster central here in Byron at the Roadhouse Cafe. Their avo on toast is only $12 compared with the $22 per plate of “Smashed Avocado with Crumbled Feta on Five-grain Toasted Bread” featured at somewhere like Bondi Beach.
As regular readers know, BPS is a firm supporter of getting more sense into the Oz real estate market and a better deal for renters and first home buyers. The point he makes is valid, saving for a home takes work and dedication, but he was frivolous in suggesting all it takes is better menu choices. It does take younger generations going to social media and wherever they can find a platform to make their case.
I was interested to see a few things surfacing that may help in the future. It seems the greedy baby boomers are hogging the empty family home and not moving out in a timely fashion to make room for the next gen. It has been suggested the reasons are two fold: there is no suitable mid size property that suits and the present asset testing is prohibitive. If an elderly couple sell their home and make it liquid they will sacrifice the pension.
Unfortunately, our federal treasurer ScoMo, recently delivered a major speech on this vexing issue. The response Mr Morrison’s talk to the Urban Development Institute of Australia was met mainly with scorn and ridicule. It was in similar vein to his predecessor Mr Hockey’s advice, “Get a job, Get a job that pays well”. He basically passed the buck to the states and ducked any responsibility. Looks like nothing is going to be done in this space for a while.