Graham Whitfield believes the dream of owning your own home has become harder for young Australians. (Source: TikTok\/Supplied\/Graham Whitfield) <\/p>\n
Graham Whitfield has a $13 million property portfolio under his belt, but even he believes it has become a lot harder for young Australians to buy their own home<\/a>. The property flipper believes the game has completely changed for young people and you now have to think outside of the box to get onto the ladder.<\/p>\n Whitfield quit his $150,000 a year FIFO<\/a> job back in 2021 to become a full-time property flipper<\/a>. He has flipped about 24 properties and made a profit of $2 million, but he is still currently a renter<\/a> and doesn\u2019t own the property he lives in.<\/p>\n \u201cThe great Australian dream of owning your own home, I think, it’s a reality for very few, unless you want to have the handcuffs on,\u201d Whitfield told Yahoo Finance.<\/p>\n That\u2019s the idea of being \u201chandcuffed\u201d to your mortgage<\/a>, where you are spending a high proportion of your income and your mortgage repayments.<\/p>\n RELATED<\/p>\n \u201cThat\u2019s why you hear about mortgage stress<\/a> because it\u2019s just too much,\u201d Whitfield said.<\/p>\n \u201cFirst-home buyers spending $1 million, even if there\u2019s two incomes, they\u2019re on average incomes, then they\u2019ve got a $1 million debt.<\/p>\n \u201cIt\u2019s just ridiculous. And then what will happen if they decide to have a child and they go down to one income, it\u2019s not a great place to be.\u201d<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/a><\/p>\n Whitfield said it was a common complaint online from young people that Baby Boomers<\/a> had it \u201ca lot easier\u201d.<\/p>\n \u201cThe reality is, what they\u2019re saying is true. It certainly was a lot easier than what it is now,\u201d he said.<\/p>\n \u201cBut I just think that the game\u2019s changed, and you’ve just got to know how to play the game now.\u201d<\/p>\n Whitfield shared a video on his social media this week showing a $530,000 house one of his students bought in Melbourne\u2019s Frankston.<\/p>\n Whitfield said the house had been \u201ccompletely trashed\u201d and was a home most buyers would turn their back on. But there was \u201copportunity\u201d for people if they were willing to do the renovations.<\/p>\n \u201cThat one needs everything. It\u2019ll be a full gut sort of thing. It\u2019ll be strip out the kitchen and bathroom, obviously sand the flooring and painting,\u201d he said.<\/p>\n \u201cSo basically pretty much everything that one. That one also needs landscaping and fencing as well.\u201d<\/p>\n Whitfield expects his student will spend between $60,000 to $80,000 on a renovation of the property, which he will then seek to sell for a profit.<\/p>\n Story Continues <\/p>\n Whitfield said it was still possible to find houses around the $500,000, but you\u2019d have to make trade-offs whether that be looking regionally<\/a>, looking for a smaller property or being prepared to do renovations.<\/p>\n \u201cThey could settle for something smaller. But if they’re buying for that low $500,000 they’re just going to have to put in work for that property,\u201d Whitfield said.<\/p>\n Whitfield said there were similar opportunities available in Melbourne at the moment that his students had flipped, including around Frankston and Melton.<\/p>\n One house in Melton was purchased for $465,000, with $70,000 spent on a renovation. It sold for $670,000, with the flipper pocketing a $70,000 profit,<\/p>\n Another house in Melton South was purchased for $510,000 and also underwent a $70,000 renovation. It sold for $700,000, with a profit of $65,000.<\/p>\n Whitfield noted it was possible to do affordable renovations<\/a>, with flat-pack kitchens available for $15,000. If you manage the trades yourself, this will also help cut down on costs. It\u2019s worth noting first-home buyers may face challenges around bank lending.<\/p>\n \u2018Rentvesting\u2019 is another option for Aussies hoping to get onto the property ladder<\/a>, Whitfield said. This is where you buy a property where you can afford, generally in a regional location, and continue to rent in the area you want to live.<\/p>\n Whitfield currently rentvests<\/a>, with his family renting a home in the Margaret River region. He has purchased a property with a rental business attached to it and plans to renovate this and potentially move in in the future.<\/p>\n \u201cIn my opinion, first-home buyers it\u2019s a bad idea to be looking to be buying your own home because a lot of them such a big portion of their income is going towards paying their mortgage where they could be targeting hotspots and rentvesting where they can get some growth,\u201d he said.<\/p>\n It\u2019s a trend that has been growing in popularity amongst younger Australians, with new research from Resolve Finance finding 16 per cent of renters aged 18 to 24 were planning to buy an investment property as their first purchase. This was up from 7 per cent a year ago.<\/p>\n The average budget for first home buyers nationally is $613,000, which is blow the average budget for the owner occupier hopefuls at $670,000.<\/p>\n \u201cFor many young Australians, rent-vesting is a way to get their foot in the market sooner. They\u2019re prepared to rent where they want to live and buy where they can afford, and the budgets reflect this as they are spending less to get on the property ladder,\u201d Resolve Finance managing director Don Crellin said.<\/p>\n \u201cIt\u2019s a pragmatic strategy that reflects both the reality of today\u2019s housing market and the determination of this generation to build wealth.\u201d<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n Graham Whitfield quit his FIFO job back in 2021 to do property flipping full-time and not teaches others how to follow in his footsteps. (Source: Supplied\/Graham Whitfield) <\/p>\n