Rich lister on buying homes: 'Stop buying $4 coffees'
A YOUNG rich lister who made his fortune off the back of Australia's capital city property boom says his generation needs to stop buying $4 coffees and travelling if they want to own a home.
Developer Tim Gurner, 35, is worth nearly half a billion dollars but has delivered a brutal smackdown to some would-be first home buyers struggling to get a toehold in the market.
"When I was buying my first home, I wasn't buying smashed avocado for 19 bucks and four coffees at $4 each," he told 60 Minutes in a segment exploring Australia's housing affordability crisis.
"You have to start to get realistic about your expectations. There is no question we are at a point now where the expectations of younger people are very, very high.
"They want to eat out every day, they want to travel to Europe every year. This generation is watching the Kardashians and thinking that's normal. Thinking that owning a Bentley is normal, that owning a BMW is normal.
Mr Gurner, who ranked 157 on this year's Financial Review Rich List after making $473 million in 10 years He started out by taking over a lease on a suburban gym as a 19-year-old, using $34,000 given to him by his grandfather. He sold the business a year later to a competitor and went into property development, riding the boom in Melbourne and Brisbane. His Gurner company now has 5000 apartments worth $2.7 billion on its books.
Mr Gurner said there was "no question" many young people today were blowing their money on a lifestyle, then whingeing about homes being too expensive.
"You're not going to get a house in Camberwell for $700,000, you're not going to get one in Alexandria in Sydney, you're not going to get one in Newstead in Brisbane. I mean the market has changed."
"I think until this generation realises that the people that own homes today worked very, very hard for it, saved every dollar, did everything they could to get up the property ladder (they won't get ahead)
"You might have to buy an investment property first, you might have to share with mum and dad, you might have to buy with a friend, but you've got to get your foot in the door and you've got to slowly get up the ladder."