RENT­ING V BUY­ING

GQ (Australia) - - GQ INC. -

Ear­lier this year, Malcolm Turn­bull dished out some much-de­rided advice for young peo­ple hop­ing to en­ter the prop­erty mar­ket: just bor­row money from your (wealthy) par­ents. It came after former trea­surer, Joe Hockey, took a swipe at those locked out of the mar­ket, claim­ing young Aus­tralians sim­ply needed to “get a good job that pays good money”. Thanks for that, Joe. Ever since, de­bate on rent­ing ver­sus buy­ing has been run­ning hot. While tra­di­tion­ally we’ve been a bunch of re­luc­tant renters – a life spent pay­ing off some­one else’s mort­gage largely viewed as ‘Euro­pean’, along­side af­ter­noon sies­tas and blasé at­ti­tudes to sex – it’s now very much a re­al­ity for many. In fact, we’re quickly be­com­ing a na­tion of non-home­own­ers, with 60 per cent of Mel­bur­ni­ans and Syd­neysiders now rent­ing where they re­side. And it’s un­der­stand­able – young buy­ers are at­tempt­ing to en­ter mar­kets where av­er­age house prices are a stag­ger­ing 10 to 12 times the av­er­age yearly salary. By com­par­i­son, our Baby Boomer par­ents bought when prices were strad­dling just two or three times their an­nual in­come. So, do you scrimp and live your best years on baked beans to save a de­posit and pur­chase an as­set that should set up the fu­ture? Or em­brace life’s many mo­ments, save for the has­sle of the oc­ca­sional move? To ex­plore each option, we asked two Aus­tralians to weigh in with their ex­pe­ri­ences.

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