I was always the kid that would fantasise about the finer things in life—fast cars, extravagant holidays and most importantly, a big beautiful palace to call my home. I remember often asking my peers’ dreamy hypothetical questions like what they would do if they won a million dollars.
At that time, despite being a kid – a million dollars could buy you quite a lot. In fact, it could get you all three of those things I just mentioned dreaming about. The unfortunate reality for many millennials is that a million dollars will only buy you one of those things nowadays.
Is The Property Market Really That Crazy?
I often hear my peers complain about how expensive property prices are. I even hear my parent’s and other people in previous generations say how unlucky we are. But is the reality as bad as they say? Before buying my first property, I was curious, so I started looking into previous sales of properties and adjusting for inflation.
My first family home was a good starting point, which in May of 1999 sold for $170k.
Based on a few inflation calculators, this amount would be the equivalent of roughly $290k in 2021.
Based on similar properties in that area, if you were to buy that same home today – it would be worth roughly one million dollars, give or take. So to answer the question, I would often ask as a kid what I would do with a million dollars? Buy an average home in the suburbs, it seems.
The Need To Be Exceptional For a Normal Lifestyle
Something universally ingrained in many children is that if you work hard in school and then attend and graduate from university, you will be successful in life.
I remember growing up, and my father did neither of these things – and yet he was able to provide our family with a good lifestyle solely on his income. Accordingly, my idea of success was naturally something more than what I had, which I considered an average lifestyle.
Nowadays, it seems that the norm is both partners’ need to work in positions that pay above the average pay in Australia to afford a somewhat normal lifestyle. This is a reality that I have struggled to come to terms with, as have many of my peers.
My Experience Buying My First Home
Another frustrating reality I have come to realise is that real estate agents will often advertise home’s in a price range below what they expect to get for a property. As if the prices were not already high enough.
When you are a first home-buyer, every extra dollar matters, you do not have your dream income yet, and the banks are unwilling to give you what you need. The situation becomes demotivating the more record-breaking auctions you attend and the more you realise that a simple life you have been accustomed to is almost out of reach entirely.
My Final Piece Of Advice To First Home Buyers
It is certainly still possible to buy a decent home in a lovely location. However, what is evident from my experience is that you need to work harder than ever to accomplish it. It would be best if you started thinking about your future from a younger age than ever, and saving as soon as possible.
Finally – adjust your expectations for your sanity.
Importance of Seeking Legal Advice
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About The Author
Christopher Garabedian is a marketing and business coordinator for J.B. Solicitors. He is a law graduate, currently completing his practical legal training course with the hopes to be a practising lawyer by mid-2022.