Is Avocado Toast Really Denying Millennials the Right to Own a Home?

Home  >  Articles   >   Is Avocado Toast Really Denying Millennials the Right to Own a Home?

Avocado toast could be given many labels. The most famous is that it’s a home ownership barrier for millennials, according to Tim Gurner, who famously stated that when he was saving for his first home that he “wasn’t buying $19 smashed avocado and $4 coffees.”

Gurner said it, millennials hit back, Gurner retaliated, and so we go on. It will come as no surprise to anyone who either marvels or despairs at the way the world currently is that most of the response came via social media.

Here’s our take.

Avocado. Starbucks for the Modern Day

Poor avocado! A fruit originally thought to have originated in Mexico but now thought to have been present in Peru as long as 15 years ago, whether you’re looking for advice on healthy fats, superfoods, or the best things to eat to get your daily vitamin intake somewhere near 100% what’s recommended, the chances are that avocado won’t be far away from being mentioned.

What did avocado ever do to anyone? Well, nothing, other than probably protect them against heart disease and potentially offend the taste buds of those who don’t like to eat it. The fact avocados can sometimes be expensive – and their popularity continues to see prices rise in various locations around the world – is obviously what got them a mention here.

The funniest thing about avocados getting it in the neck here is that they’re just a Starbucks for the modern day. When Starbucks first became big in the United States, it was their fault people had no money, because these folks would buy a coffee every day. At least no brands were mentioned this time, and given the cost of coffee in some places, if anyone knows where you can get great coffee for $4, please get in touch and tell us where!

How Dare You Treat Yourself!

This is what it boils down to. You simply shouldn’t treat yourself.

If you’re not drinking water, and hanging around the supermarket until the groceries that are going out of date are reduced to next to nothing before they are taken off the shelves and thrown in the bin, then you will hardly get a chance of ever becoming a home owner.

While we’re at it, let’s think of the other things you shouldn’t do either:

  1. Live in a decent house or apartment. If you’re renting somewhere nice, what are you thinking about? You ought to be living in the cheapest place available, no matter where it is or the condition of it.
  2. Take a vacation. Not only should you not take a vacation, you shouldn’t have any spare time at all. Work. Sleep. Repeat.
  3. Have friends. What did having a social life ever do for anyone?

Whatever else you’re doing in your life, if it costs money, then it’s not on. You must change your ways now, be born again as a spendthrift, and never get away from the ultimate aim of buying a home. If everything you do isn’t geared towards adding more money to your savings, then it isn’t worth doing.

Enjoying Yourself While Saving

Of course, the notion that you should stop doing anything you enjoy at all just to save money to buy a home is ridiculous. You might even be one of the increasing number of people who is at peace with the idea of never owning a home, and as such it isn’t something you worry about.

If home ownership is an ambition you hold, there is obviously some merit in being careful with how you budget so you can save up a mortgage deposit. One of the easiest ways to save is to cut back on buying breakfast on the way to work – we’re talking in general here, not just to you blasted avocado toast eaters – coffees, and lunches, a couple of days a week.

The beauty of budgeting is that you can plan exactly what you’re going to spend, including on socialising, eating out, and whatever else you like to do. And just because you enjoy the finer things in life from time to time, it doesn’t make you reckless or a non-deserving homeowner, or someone who has no clue how to manage their finances.

Is avocado toast stopping you owning your own home? Probably not, but there’s never any harm in reconsidering how you spend if you are saving up towards a mortgage deposit.

 

Disclaimer:  This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs.  Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.

Categories: Articles, Industry Analysis, Saving Tips, Spending

Things you should know

Applications for finance are subject to NOW Finance’s lending and approval criteria. Terms and conditions may apply.  No establishment, account keeping or early repayment fees will apply. Charges such as default or enforcement costs may apply if you do not comply with the terms of your loan. Settlement times may vary depending on individual circumstances. Loan repayment terms range between 18 months to 7 years.  For unsecured loans you can borrow between $5,000 to $50,000 with interest rates ranging from 5.95% p.a. (5.95% p.a. comparison rate*) to 17.95% p.a. (17.95% p.a. comparison rate*).  For secured loans you can borrow between $15,000 to $100,000 with interest rates ranging from 4.45%p.a. (4.45% comparison rate*) to 15.45% p.a. (15.45% p.a. comparison rate*).

*About Comparison Rates

The Comparison Rate is designed to help you understand the overall cost of the personal loan. It combines the amount of the loan, loan term, repayment frequency, interest rate, fees and charges into a single rate to show the total true cost of the loan. The comparison rates for the NOW Finance loans are based on a loan of $30,000 over 5 years. WARNING: The comparison rates given are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Due to the fact NOW Finance does not charge any establishment, account keeping or early repayment fees, the true cost of the loan or Comparison Rate will always equal the interest rate quoted.

^CONFIRMED RATE

our confirmed guaranteed personalised rate may change if you provide NOW Finance with incorrect personal information or security details.  In some circumstances, NOW Finance may require further information from you in order to provide you with your guaranteed personalised rate.

NOW FINANCE is a trademark of Now Finance Group Pty Ltd ACN 158 703 612 Australian Credit Licence number 425142, as agent for NF Finco 2 Pty Ltd ACN 164 213 030