More than half of millennials real estate investors are under pressure on their finances and have condemned unreliable investment proposals that have now forced them to cut spending or work together to make a living, according to an Australian-wide survey.
Millennials, usually those born in the early 1980s, have been ridiculed for their profligacy (represented by avocado toast for breakfast) rather than saving money to buy a house.
But they claim their savings and investments are being hit by falling house prices and rising interest rates.
This is a generation of "tenderers" who live in rented houses because they can't afford to buy the same house, but they buy investment houses in other areas and rent them out to others. However, many people bought at the top of the market, hit by falling prices and rising costs.
Sodersey (Mandeep Sodhi), a former banker and founder and chief executive of online mortgage site HashChing, said stressed millennials are being forced to eat fewer meals, take vacations and rely on part-time jobs to make a living.
"most of these millennials are like four big bank loans," Sodersey said of the survey. "they never bother looking around for real estate advice or looking for more cost-effective interest rates from other lenders. They have paid a high price for their loyalty. "
(Customer Owned Banking Association), a client-owned banking association representing 74 mutual aid groups, credit unions and construction societies, also claimed that red tape, high regulatory costs and aggressive marketing by the big four banks were curbing competition.
But (ABA), the Australian banking association, says it has more than 140 suppliers, thousands of products and evidence that borrowers are in three.
Higher investment cost
Mr. Sodersey said the productivity commission was right to point to persistent opaque pricing, conflicting financial advice and cascading regulatory requirements that contributed to the increase in debt.
The apartment failed to achieve the expected rise in value, but the term of access to a "cheap" mortgage is over and replaced by more expensive products that require repayment of principal and interest.
Lakland (Lachlan MacPhee) and Simon (Simon Gladysz) live in Richmond, inner Melbourne, where they are selling a one-bedroom apartment they bought eight years ago, but have failed to add value.
The couple found it easy to find tenants, but they had to pay higher rates after the interest-only period expired.
Analysts warned that the surge in downtown apartment construction, falling prices, rising interest rates and growing investor tensions made it harder to sell.
However, some millennials are still on the market. Ozta (Auzita Pourshash), a human resources consultant who rents a house in Neutral Bay, a suburb of northern Sydney, recently bought a $ five hundred thousand investment home on the central coast of New York.
Ozta made the investment because she wanted to own a property by the age of 30. "this is an investment house, and I will continue to live in Neutral Bay." She said.