A young real estate investor confronts young people who want to get a foot in the door on the housing market, but are not prepared to make concessions to stay within their budget, with hard facts.
Jack Henderson, 27, bought his first home at 18, while working in construction and living at home in Western Sydney. At 21, he moved to Newcastle and opened his buyers agency, Henderson Advocacy, in 2020. He now owns 15 homes.
Mr Henderson believes that buying a home is more attainable than many people think, but it does require greater sacrifices.
He often sees that young Australians refuse to buy a house in a less attractive suburb because they want the best straight away.
A three-bedroom, one-bathroom house in Bidwill sold for $730,000 earlier this year, but he claimed most young Australians today wouldn’t buy such a house because it’s 46km west of Sydney.
“My parents started in a place called Bidwill, near Mount Druitt,” he said.
‘That’s where they started, they probably paid $50,000 or $60,000 for that same house at the time.
‘Now it’s worth $500,000 or $600,000, maybe $700,000.
‘They went from Bidwill to Wilberforce, where they bought something for $180,000 and they sold that $180,000 house for $575,000 and bought something for $630,000 – they sold the $630,000 house for $2.2 million.
‘Now they are retired and it is a 40-year journey, but that was what they could afford back then.
“My mother grew up on the housing board and my father grew up alone – their situation couldn’t have been worse. But they started where they could afford it.”
Mr Henderson attributed his parents’ success in housing to the fact that “they didn’t overinvest and just built slowly”.
“But in 2024, people won’t do that anymore. Everyone has a right to it. Everyone wants this and that and they don’t want to do any f**king work for it,” he said.
‘Why is Afterpay so popular? Why is Zip Money so popular? Why are there all these luxury brands?
‘People want to see themselves as something they are not.
“I’d love to live on the water in Point Piper, but I can’t afford it. That’s the reality.”
Mr Henderson bought his first home, a two-bedroom apartment in Coogee, for $720,000 at the age of 18
He believes young Australians struggle to buy their first home because they are eager to keep up with the Instagram lifestyle.
“It’s not cool to say you live in a certain area when it’s not as glamorous as everyone wants it to be,” he told Daily Mail Australia.
“I think the biggest problem is that people want their cake and they want to eat it too. They also want to travel to Europe once a year and drive the best car.
“You’re going to make sacrifices either way. So you can choose to be young and make sacrifices, or you can choose to be old and make sacrifices.”
Jack Henderson (pictured) criticised young Australians for being ‘entitled’ in their approach to the housing market
The property guru himself rents an apartment in Sydney’s eastern suburbs, but would never consider buying one because it’s too expensive
As for how young Australians can get ahead and build a ‘good life’ in the future, Mr Henderson advised opening a savings account as soon as possible.
“I would encourage first home buyers to live in their first home because you can take advantage of the benefits. In New South Wales you pay a five per cent deposit, no mortgage from the lender and no transfer tax,” he said.
‘The chances are slim that you will buy your first home where you will also buy your last home.
‘I grew up in a place called Wilberforce, 65km north-west of Sydney. You can still buy houses there for around $700,000.
‘We bought a house in Ipswich for a client last week for $480,000. It’s 40 minutes from Brisbane CBD.
“It’s not the most glamorous neighborhood, but it’s a start.”
Mr Henderson likes to give young people the advice, to put it simply: it is becoming increasingly difficult to buy a house later in life.
“As you get older and further into your career, you have more obligations,” he said.
‘It could be It is harder to borrow money from a bank if you are renting a house, have a child and maybe are a single parent. It is all relative.
“The sooner you do it, the less trouble you have with those kinds of things and the easier it is. That’s just a fact.”
Mr Henderson said Sydney buyers are not prepared to compromise on a home in the western suburbs and instead expect to be able to purchase a waterfront home straight away.
According to CoreLogic’s daily index, national home prices rose by half a percent in the four weeks ended July 18, down from a 0.7 percent increase in the same period last month.
According to Kaytlin Ezzy, an economist at the real estate data firm, the slowing growth is likely due to persistently low consumer confidence and still high inflation.
An increase in advertised inventory levels in some markets also played a role, she said.
“With high living costs and increased debt service costs already putting pressure on many household budgets, it is likely that some potential buyers will delay their purchase decision until the interest rate outlook is clearer,” she said.
This has likely led to a decline in demand and a reduction in tension in the housing market, the economist said.
Two higher-than-expected monthly inflation figures have prompted some economists to push back their timetable for rate cuts.
Much depends on the second quarter inflation figures due later this month. There are warnings that a disappointingly strong result could even lead to the Australian Reserve Bank raising interest rates again at its August meeting.
The decline in house prices was most pronounced for homes, as they were less sensitive to market conditions.
Compared to mid-sized capital cities, which have been experiencing strong growth for some time, prices in Sydney fell faster.
“Affordability remains a key driver of growth, with the cheaper end of the market more resilient to high interest rates,” Ms Ezzy said.
In Brisbane, Adelaide and Perth, house price growth slowed slightly through early July, signalling the first signs of weakening demand.
Tenants also see light at the end of the tunnel: the number of vacant rental properties is increasing nationwide.
According to SQM Research, the vacancy rate now stands at 1.3 percent, while rents in the capital cities rose by just 0.1 percent in the 30 days to July 12.
According to Louis Christopher, the firm’s director of research, renters will have to wait a while for a significant improvement in the market, but “the days of annual rent increases of 10-20 percent or more are over.”
