Looking for a 1-bedroom apartment in Sydney? As a mortgage broker in Sydney, it makes me happy to see people conquer the seemingly impossible. Like when a couple finds their dream home after scouring the Sydney property market for almost a year, or when the financially strapped couple finds a way to refinance their mortgage and keep their home.
But there’s one story in particular that’s close my heart.
It’s the story where the single Gen Y realises, despite all the fear-mongering from the media, and avocado on toast they eat, or the bullying from her family and/or her partner, that they can damn right buy their own 1 bedroom apartment in Sydney and be on their way to financial security.
And off to brunch too, of course!
I probably like this story because I’m the proud father to a little girl (and also love smashed avocado). I can only hope to see her buy a home in Sydney and achieve financial security.
And then eat avocado together.
There’s just a few problems that Gen Y face along the way, which is a problem that’s unfortunately ingrained in our society that likes to tell young people what they can and can’t do.
The Gen Y struggle with buying a home in Sydney…it’s more than just avocado on toast
Gas-lighting is a term that gets chucked around a lot and you might have seen it doing the rounds in recent years. It’s where someone says something to another to make them doubt their sanity, logic and capacity to make decisions.
Like this baby boomer who sees avocado on toast as the downfall of all society.
As a mortgage broker, I see family members gas-lighting each other this quite a bit. A Gen Y first homebuyer with a sound job and a decent amount of savings wants to buy a 1-bedroom apartment in Sydney, and someone convinces them otherwise.
That’s crazy! They’re too young to buy a property, and they should be off travelling and posting photos on Instagram. Don’t they know that a home loan is Very Scary and for Serious Adults only?!
Or, this home won’t suit their needs, and they really should have given dad a call before they decided on the 1-bedroom apartment in Sydney with the low ceiling.
It’s all utter rubbish. Whether it’s mum, dad, the boyfriend, or girlfriend, or the best friend or the media telling them, this Gen Y’s 1 bedroom apartment dream is often dashed by those telling them they don’t know what they’re doing.
Here’s a home truth: you do know what you’re doing, and you are not delusional.
Know that you can own that 1-bedroom apartment in Sydney on your own. You can have your avocado toast and eat it too!
- You’re smart and financially savvy
If you have a reliable full-time job with genuine savings, then you will be able to buy a one-bedroom apartment, and some avo on toast with an almond latte. Not sure exactly what you need to get that mortgage? Read these posts:
How much do I need for a home loan deposit?
How to improve a bad credit score.
How to buy a home on a single income.
- Sydney house prices fluctuate
Much like avocados, yes, Sydney’s house prices are expensive. But the housing market goes up and down, just like the cost of the nation’s favourite source of Vitamin E. Just because a home in Sydney might be juuuuust out of your budget right now, doesn’t mean you won’t find one in a month. In fact, QBE Insurance just released a forecast for the 2016-19 period that shows tighter lending to investors slowing demand for property, and softening the Australian residential property market over the next three years. This will greatly improve affordability and create opportunities for owner occupiers, much like Gen Y first homebuyers.
Got your eye on a 1-bedroom apartment in Sydney? According to QBE’s report, Sydney’s unit price growth is forecast to fall 1.8% in 2016-17 and cumulatively by 6.8% during the three years to June 2019 to a median price of $680,000.
However, this doesn’t mean that buying a home in Sydney is a waste of money because of the see-sawing prices. Overall, property increases in value decade after decade. So while it does experience dips occasionally, property is one of your most valuable assets.
- Buying in a capital city is the smartest option
Capital cities will always be a popular choice for property investors and owner occupiers, and their value increases at a greater rate than their rural counterparts. On top of that, it’s proven that when one capital city experiences an increase in growth, other capital cities follow suit. So remember, it’s not always about the land – it’s largely about the location.
- Buying a property off the plan – just don’t!
I’ve written about this before in this post, but I’ll say it again – don’t buy off the plan. Buying off the plan leads to a lot of uncertainty and dashed dreams, and the last thing you want is that smug uncle or aunty saying, “I told you so!”.
You can do it guys! On your own. Leave the negativity to those with less ambition and fondness for brunching out, and pursue your 1-bedroom apartment dreams with grit, gumption and gusto.
Looking for more advice? Sign up to receive more posts like this! I write weekly blog posts on how to buy the house of your dreams in Sydney.