Rent money ISN’T dead money and DON’T rush into buying a house: Money man Mark Bouris’ surprising advice for young people thinking of breaking into the property market
- Australia’s median property price rose by 21.6% to $686K in the last 12 months
- Entrepreneur Mark Bouris gave blunt advice for young home buyers on Tuesday
- Sydney’s average house price has risen by 30.4% to $1,333,767
- New data shows the fastest annual increase in house prices since early 1989
Prominent Australian entrepreneur Mark Bouris has some blunt advice for young wannabe homeowners: don’t bother – at least until you’re older.
The country’s median house has price surged more than 20 per cent putting the dream of owning a home out of reach for many young people.
But Mr Bouris said there’s no reason to rush into the market as it’s actually more affordable to rent a nice house, than than buy one.
Buying a property is a huge investment that Mr Bouris hopes younger buyers have fully considered, based on where they may be in life.
Entrepreneur Mark Bouris (pictured) said house prices are rising faster than young people can save for their deposits, as Australia’s median house price rose 21.6% to $686k in the 12 months to October 2021
‘If you’re in your twenties, I don’t think you should think to yourself, like I used to think to myself, “oh I’ve gotta go get a house”,’ he said
‘I don’t think young people today should be so prescriptive to any one particular avenue, they should be open whatever they think is a good idea.
‘BUT, I would also say don’t go f***ing spending (your money) on stupid s**t. Either bank it, invest it, buy into real estate, or put it into a business – that’s an investment to me.’
In the year to October, Australia’s median property price surged by 21.6 per cent to $686,339, with new CoreLogic data showing the fastest annual increase since early 1989.
That means someone buying a typical home, with a 20 per cent mortgage deposit factored in, would owe the bank $549,071.
Mr Bouris said young people should try and escape the traditional mindset of buying a house early on if that’s not what they really want to do.
‘You know this whole thing about “I gotta buy a house [and] settle down”, there’s plenty of time to do that,’ he said in his TikTok video.
‘It’s actually cheaper to rent a good house today than it is to buy.
Mr Bouris (pictured: TikTok) said that young people should have the freedom to choose if buying is something they want to do when they want to do it and added that it may be cheaper to rent than to buy a similar property
‘The speed at which you have to save money to be able to buy a property is hardly achievable, given the speed at which house prices are growing, so you’ve got to think of some other way of making money.
‘You also have to think about at what stage of [your] life do [you] want to have that security?
‘Do you want it at 20, or 30, or do [you] want to live [your] life getting experiences and then buy a place when [you’re] 40?’
‘I just don’t think you should bust your a*se to get that sort of stuff.’
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