Millennials Forge Their Own Path in the Face of Rising House Prices
Tapping Into Unused Spaces on Family PropertyMillennials may not all be able to live out the Australian dream of owning their own home on a quarter block of land, but they can always share it with their Baby Boomer parents who did! Converting an otherwise unused space on your family’s property can be a temporary solution until enough can be saved for a deposit, or can even be a permanent arrangement. If you do plan on converting pre-existing dwellings on your family’s property, your local council will need to approve the plans and any future subdivisions, so that once you move out, the property could potentially be sold on its own. Convert a garageSarah Trotter is the interior architect behind Hearth Studio. She helped her friend and client Alex Kennedy convert a garage on her mum’s property in Carlton, Victoria into a gorgeous studio. “Alex wanted a special space of her own that was affordable and close to the city,” says Trotter. “It seemed obvious to her that the only way to have a place of her own was to turn the old garage into a studio apartment.” The 35-square-metre space is inspired by Japanese minimalism, with the interior fitout made from recycled materials. This set-up w...
Convert the pool houseFor BJ Keebaugh, the old pool house at the back of the family home became redundant when the pool was filled in. Keebaugh saw it as the perfect opportunity to live independently, while still living at home and saving his pennies. The 18-square-metre space serves him well for study, training and entertaining his friends.
While the 20-year-old’s savings are currently going towards travel plans, he also eventually plans on entering the property market. This living arrangement may well be how he gets there. While renting was an option, Keebaugh prefers living at home and being close to his family while he focuses on his studies. “I am very family orientated,” he says, “and am a full-time university student and a casual worker. So the emotional aspect of coming home every day and seeing my family members makes me extremely happy.”
Keebaugh says he has great respect for other millennials who live out of home, study, work and manage to save. Average rents continue to climb, with Melbourne averaging $453 a week and Sydney $600. This can make the prospect of accumulating enough money to afford your own pad pretty grim. If you are renting and trying to save, you could always try living in Hobart, which is the cheapest major city to rent in at $341 per week.See the rest of Keebaugh’s granny flat
Convert a tin shedCouple Skye and Mitch Jones, 30 and 33, decided to move home after buying an off-the-plan townhouse in a marina development, which is still under construction. They had also just returned from a four-week road trip across the US. Having spent most of their savings, they needed a rent-free home to replenish their bank accounts and pay off their mortgage. “As much as we love our parents, the thought of moving back home as a 27-year-old was not an option (sorry Mum),” says Skye. “We wanted our own space but somewhere cheap in order to save – hashtag, thanks Mum and Dad!”
Skye’s dad originally built the shed to look like a cattle shed and it has a beautiful outlook over a pond. However, it didn’t always look like this. She describes it as previously being a bit of a junkyard, and it was where many parties took place during her teenage years. “It was literally filled to the roof with boxes, old mattresses, a pool table, old furniture – you name it. It was also home to a billion spiders and a family of mice,” she says. After renovating it into a liveable condition, the couple went about personalising the space. They installed a fireplace and added a bedroom, but continue to use the outdoor shower. They split their time between this home and the main house, which they tend to retreat to during the more extreme weather conditions.
“Besides the obvious money saving, we have had an absolute ball living here,” says Skye. “The outdoor shower, a fireplace as the only method of heating, living on tank water, shouting to hear each other when it rains on the tin roof and cooking on camping stoves has created memories we will cherish forever.”Tour the rest of this backyard home
Consider multi-generational living with an extensionIf you are living at home, but still want independence from your parents, you could both consider adding on an extension to their existing house. This not only allows for separate areas to retreat to and communal areas to socialise in, but will allow you to save money for your own house, while also adding value to your parent’s house for resale. This is exactly what a young couple did with the husband’s mother’s house in Melbourne.
Taylor Knights was the architecture and interior design firm behind the extension. They wanted to create a space that provided privacy for the two generations, but also promoted socialising. They did this by situating the couple’s quarters downstairs behind a sliding door, which includes a bedroom, bathroom and living area, while Mum has her own private retreat upstairs.
Rich materials and fittings were added to the communal kitchen and living area, where they catch up as a family. Taylor Knights also considered how the house would work for future families, ensuring it’s still desirable if the mother decides to downsize after the couple moves out. Mum’s quarters boast a double vanity in the bathroom and an upstairs study room that could potentially be a gym, while the young couple’s area could be the perfect place for kids to grow into teenagers with privacy. See the full tour here
Downsize to Teeny Tiny HomesAnother economical way to live is investing in a tiny house. There are many companies now manufacturing pint-sized living quarters for those looking to live a more sustainable life at a low cost. Fred’s Tiny Houses is just one of these, and the stylish interior layout is appealing to a young crowd. “In my view, the primary way that living in a tiny house can benefit a millennial, or anyone really who may not have accumulated enough money for a down payment, is to build and live in a tiny house while you save for a down payment and tidy up any credit-worthiness issues during that time,” says Fred Schultz, founder of Fred’s Tiny Houses.Photo by James Braund
The homes come with everything you need to live comfortably. A loft bed, hangout area, kitchen and bathroom in a space as little as 10 square metres. It’s also possible to enjoy the perks of living in the inner city, if you can find someone who will let you park it in their driveway, laneway or backyard.Photo by James Braund
Schultz lives in one of his own products and enjoys life with his family there. “The running cost beyond normal food and other expenses would be really rather low and limited to firewood and alcohol fuel for the stovetop,” he says. “We are currently not being charged rent for the land we are on. Typically a ‘Tiny House Agistment’ can run from between $75-$200 per month on a horse property used for horse agistments,” says Schultz.Photo by James Braund
Pair Up With Baby BoomersCombine incomesSo often, we hear about how lucky the Baby Boomer generation was in terms of real estate – interest rates may have been high, but prices were low and many Boomers have enjoyed big capital gains over the years. As a result, savvy Gen Ys are teaming up with their Baby Boomer parents to enter the property market. Twenty-six-year-old interior architect Georgie Marks demonstrated this when she bought her very first home with the help of her mum, Lu, who once worked as an interior designer. The duo went into a knock-down-rebuild project in Richmond, Victoria together, splitting all costs and profits 50-50. With experience in interior architecture and interior design behind them, they knew the home had great potential. “As a full-time worker I couldn’t afford the time or money without my hardworking and strong-minded mum,” says Georgie. “The invaluable knowledge my mum had for renovating was fantastic, as I had no experience in living through or co-ordinating a new build or renovation.”Photos by Lu & Georgie Marks
Mother and daughter lived in the home throughout the two-year renovation. It all paid off for Georgie and Lu when they sold the home last year for $1.425 million, a significant profit given they had bought the pre-renovated home for $660,000. Stamp duty cost $45,000 and the renovation totalled $350,000-$400,000, which left a joint profit of about $330,000.
Georgie encourages other millennials to enter the property market the same way. “There is a huge opportunity to combine your money with like-minded friends or family,” she says. “The key to renovating a home successfully is absorbing as much knowledge from those who have undertaken [a renovation] themselves.”TELL USWe would love you to weigh in on the discussion. Let us know in the Comments what you think about the current housing market in Australia, and what you think the future of home buying will be for Gen Ys.MORERead more about small-scale living
While it may seem like the odds are stacked against millennials yearning for a nest of their own, many are embracing the advantages of small-space living and are turning to apartments and other small-footprint housing alternatives as long-term solutions.As architect Felipe Miranda explains, “millennials are finally coming to the realisation that the Great Australian Dream of owning a quarter-acre block is no longer something worth pursuing. They are coming to terms with the fact that owning an apartment is no longer something that is sub-par, but something worthwhile.”Let’s take a look at some of the other options millennials are considering as they step into the next stage of their lives.
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