Lean and hungry Gen Y investors

18th December 2006

You’ve heard all about Generation Y, right? They’re reluctant to settle down, happy to mooch off their parents by living at home, and quick to flit between jobs.

Well, that’s not always the case.

The December issue of Australian Property Investor magazine introduces a new breed of investor – lean and hungry members of Generation Y who are defying the stereotypes of their cohorts.

Meet Jharna Hulbert who, at 20, owns a three-bedroom rental in Campbelltown, Sydney, and wants to buy four more investment properties before she’s 30.

“I intend to begin looking for a new job in the next year so that I can increase my income and therefore my borrowing capacity,” she tells API. “I want to buy my next property within two years.”

And Nathan Yap, who nagged his parents for two years to help him buy his first property. Eventually, he won the day and struck a deal with his parents: you help me buy the property, give me a third share and I’ll give you my labour.

At 23, he owns four properties and estimates his portfolio is worth $1.46 million.

“The most frequent phrase I heard is, ‘you’re crazy, Nathan!’ I’m not really bothered though, as I think I’ve planned my cash flows well – even in the case of another one or two rate rises,” he tells API.

API editor Eynas Brodie says, “Time in the market is the key factor for making money in the property market, so these Gen Y investors are getting a headstart by leaping into the market at a young age. We’ve dubbed these Generation Y investors Generation Wise for that very reason.”

“You hear commentators saying Gen Y can’t save and won’t make sacrifices but there are young investors out there making a go of the property market.”

More comments from our Gen Y investors

What’s your motivation?
“I don’t want to be working right up until age 65. I want to be able to retire at 45 and become a lady of leisure.” – Jharna

“When you look at wealthy successful individuals like Donald Trump, they always have a little bit of property under them.” – Nathan

Too young?
“My parents were always very supportive but people both younger and older than me asked whether I was mature enough, whether I would stick to the repayments… wouldn’t I rather enjoy life and spend money while I’m young? Sometimes comments like that would make me think hard whether buying a house was right for me but the answer was always that I would rather have several houses in 10 years’ time than an expensive and out-of-date wardrobe!” – Jharna

What’s ahead?
“My long-term goal would be continue to acquire as many properties as possible to fund my possible early retirement.” – Nathan

On saving
“Saving wasn’t as hard as I thought it would be. I started saving $50 per week and after bills, food, etc., my ‘entertainment budget’ was about $5 per week. I sacrificed going out and shopping a lot and there were times when I would have loved to have gone shopping and blown my savings, but I had actually developed some willpower – my parents couldn’t believe it!” – Jharna

 

© Australian Property Investor magazine - www.apimagazine.com.au. Reproduced with permission. To subscribe to API, go to www.apimagazine.com.au or pick up a copy from your local newsagent.

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