07-07-2025
Older Australians give brutal advice to young people trying to buy a home: 'Rent is just a waste'
Older Australians have dished out their advice to the younger Aussies trying to buy a home in the current housing market.
Tahlia Morris from home loan provider Lending Loop stopped older homeowners on the street and asked them for their best advice for a young Aussies looking to buy a home.
Their advice revealed a grim reality for prospective first homebuyers, with their blunt suggestions shared in a video on the Lending Loop's TikTok account.
One man, who bought his home in his 30s, said the key was to 'save' and to buy a property so that the young generation can stop paying rent as soon as possible.
'I suppose you should save,' the man said.
'When you have a property it makes a big difference when you get a bit older. Nowe that I'm retired I don't have to pay rent or anything like that.
'Rent is just a waste, You're better off buying a property and paying that amount to eventually own it.'
In another video, the man shared that first homebuyers in his day opted for small and minimal homes.
@lendingloop
What would you tell your younger self about money, savings, or buying a home? We asked — and here's what people had to say. Link in bio to chat with a broker. 🎤🏠📆 Lending criteria, terms & conditions apply. General advice only—seek tailored advice for your situation. #moneyproblems #budgetfail #millennialmoney #finance #saving #mortgage #personalfinance #learnontiktok #realestate #education #student #genz #rentfree #savingmoney #lendingloop #MortgageTips #MortgageBroker #HomeLoan #buyingahouse #homesavings #moneytips #buyingahouse #firsttimehomebuyer #homeownershiptips #propertyinvestment #financialliteracy
♬ original sound - Tahlia - Your Finance Bestie
One older man claimed 'rent was a waste' and that younger Australians should 'save' their money for a deposit so that they can buy their own home
'Very minimal, no carpets, no curtains, no gardens, no driveway. It was just an empty shell, which you had to then develop yourself,' he said.
One woman also advised the younger generation should be frugal with their money.
'If I can just say one thing, use second hand furniture. Don't go out to eat so much,' the woman said.
Another woman said young Aussie workers should not settle for a salary job and always have a 'side hustle' to earn themselves extra cash.
'Always have a side hustle that's generally cash or be in a business where you're not capped by your salary so you can earn bonuses,' she said.
'There's capacity to earn more money within the job. Don't ever settle for for a salary job.'
Others believed the situation for Millennial and Gen Z Aussies was dire, with the housing market much harder in 2025 than when they had bought property.
'I feel completely sorry for this generation. It was much easier, it's definitely a lot harder. I don't even know what sort of advice to give people,' a woman said.
The man with her agreed: 'I've got no advice for them'.
In another video, an older woman said the housing market in 2025 was a 'very complex situation' which made her feel troubled.
'Young people are really being pushed out of the market,' she said.
'There's a population of children who when they get older like our age are going to be forced into a situation where they don't own a home and be burned with the cost of rent.
She believed young people needed to have a good job and also be realistic in what they can afford while also being careful on how they spend their money.
Tensions have flared between Boomers and young Aussies as they feud over which generation had it harder buying their first home.
Millennials and Gen Z Aussies often argue that buying a home is harder than it has ever been with the cost of living crisis and soaring house prices that far outweigh their wages.
Meanwhile, many Baby Boomers fire back claiming they had higher interest rates and that the younger generations indulge in luxuries, are not frugal with their money and have unrealistic expectations when buying property.
In 1980, Sydney's mid-point priced house cost $65,000, or just 4.5 times the average, full-time male wage in an era when a woman would struggle to get a mortgage without a signature from her husband.
Real estate data group PropTrack estimated Sydney's median house would cost $338,000 today, or just 4.3 times the average salary now for all Australian workers, if house prices had increased at the same pace as wages during the past 45 years.
In 2025, Sydney's middle-priced house costs $1.47million or 14.3 times the average, full-time salary of $103,000.
But that price-to-income ratio surges to 18.7 if it's based on the average salary of $78,567 for all workers.
Melbourne's mid-point house price cost just $40,000 in 1980 or 2.8 times the average male salary.
If affordability had remained constant, a typical Melbourne would now cost just $205,400.
But the Victorian capital's median house price of $850,000 is now 10.8 times the average salary for all workers.
Brisbane's median house price cost $32,750 in 1980 or just 2.2 times what an average man earned.
That would be $174,600 today if buying power hadn't changed.
Queensland capital houses now cost $910,000 or 11.6 times the average salary.
The major banks are unlikely to lend someone more than five times their pay before tax, which means many couples would now struggle to get a loan for a capital city house unless they moved to a far, outer suburb and had a big deposit.
Housing affordability deteriorated following the introduction of the 50 per cent capital gains tax discount in 1999, just before annual immigration levels tripled during the 2000s.
In addition, the housing affordability crisis worsened as Australia's population climbed from 14.5million in 1980 to 27.3million now.
During the 2000s, annual net overseas migration doubled from 111,441 at the start of the decade to 315,700 by 2008 when the mining boom was driving population growth.
After Australia was closed during Covid, immigration soared to a new record high of 548,800 in 2023, leading to house prices climbing even as the Reserve Bank was putting up interest rates.
