I’m a member of gen Y living in an expensive city with a new sense of hope

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My name is Harry, I’m 23 and I am a member of Gen Y. Throughout my time at @notredamebusiness the thought of house ownership has never really crossed my mind until recently. Every other morning, I go to my local supermarket and purchase my $4 avocado for avo on toast. Just like an alarm you set religiously, almost every morning I am reminded by my baby boomer parents that this smashed avo on toast is the reason why I’m locked out of the Perth housing market. Unfortunately, I’ve fallen into the generation where housing is unaffordable, education is far from free and health cover costs an arm and a leg. The general trend within our society is “skill up”, get an education, get a job, save up and get a mortgage. However, for me at this very moment in time, I’m not seeing a light (or house) at the end of the tunnel.

I decided to have a chat with my Mum to see if I can shake this financial fear and gain an insight into how I can approach this situation. This is a snippet of our conversation.

Me: So Mum, at what age did you buy your first house?

Janie: I was 18.

Me: So it was roughly 1980 when you first invested?

Janie: It was 1981 and your uncle (Andy), Grandmother and myself invested in a property in Cottesloe.

Me: How much did the property cost you?

Janie: We bought the property outright at $20,000. Andy and I put in $5000 each and Gran put in the remaining $10,000. At the time it was purely an investment.

Me: So how did you come up with the capital? Did you save up and have a plan in place?

Janie: It was a gift from my uncle that all our relatives got. At the time it seemed like the perfect solution to invest.

I guess where I am going with this, is that housing prices are not the same as 1981 and with a median house price of $1,875,000 in Cottesloe, it’s fair to say that times have changed and certainly house prices have too. When discussing this topic with Mum the idea of deposits and bank loans was scary. When I pitched the idea of borrowing money from them, there were no surprises in her reaction;

“Harry, do you think I can honestly trust you with paying back a deposit on a house? I’m still waiting on the money I lent you for fixing the car?”

“But what if we were in a contract together?”

This was where Credi came in to save the day. With the ability to build a loan, negotiate the loan to best meet our interests and with access to repayment management, it seemed too good to be true. PLUS it was FREE to create an account! My personal experiences (and more importantly my parent’s experiences) have not been pleasant, to say the least in terms of lending money, with disagreements on how much I owe and when am I going to pay them back. Credi sorted all that out for us, the platform formalised the agreement and managed the process from start to finish.

Thanks to Credi, I have a new sense of hope.

Written for Credi by Harry McGregor

Tim K. Dean, Credi Founder | Commentator & Expert on Family Lending, Bank of Mum & Dad and Neo-Credit Scores is available for media interviews and appearances. More…

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& Management

Sign up and become one of the thousands of people and business around the world using Credi to protect them selves with robust loan documentation and management today.