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With local property prices sky-high in Toronto, and growing everywhere around the Greater Toronto Area, there is an ever-shrinking possibility for up and coming homebuyers to actually purchase properties compared to years past. The solution, according to one prominent Australian real estate mogul, is that millennials should tighten their belts and strive to save more money if they ever want to buy their own home, instead of shelling out cash every month in rent.

That means no more so-called “discretionary spending”, or buying things that you do not utterly need. The real estate mogul argued that with a few compromises, it is not a massive hurdle to save a few dollars here and there, which can help add up over a longer period of time. However, his advice was heavily criticized on local social media, where many millennials as well as politicians suggested that he was out of touch with the heavy financial realities that the current generation faces.

While some data suggests that the millennial generation is spending more on eating out compared to previous generations, the discrepancy is not that large. According to information provided by the Food Institute, millennials spend 305 more dollars on eating out annually than the baby boomer generation. At the same time, it is clear that one can save money while eating healthily. In addition, if one is really serious about saving money towards a down payment, it may be prudent to sacrifice a few months of going to a bar or a restaurant every weekend, where drinks are not exactly cheap, nor is the food. Find a recipe you have wanted to try out yet never had the time to tackle – it can be a perfect opportunity to brush up on your cooking skills, as well as saving a few bucks on a meal that could have cost you a lot more at a local greasy spoon. At the same time, while his comments were criticized, the data suggests that there is a general uptick in all generations eating out rather than at home – but nobody knows whether the current generation is responsible for this shift.

In addition, the real estate billionaire suggested that yearly vacations are also responsible for millennials being unable to afford properties. Yet, data out there argues that millennials are actually spending less on vacations than their older counterparts are, but only about 300 dollars less than those within Generation X and the baby boomers. Could the man have a point? Maybe, but it certainly is a sensitive one. 

Published Date: Jun 25 2017