Millennial fury over boomer house prices advice

A retired boomer has sparked outrage for suggesting young people make sacrifices like skipping a new phone to buy a house.

A retired baby boomer has sparked outrage after suggesting to young people that they give up eating out and updating their mobile phones so they can afford to buy a home.

Sydney 68-year-old Kerrie Boylett claimed it was “practically impossible” to be approved for a home loan in 1995 as a single mum because interest rates were so high.

In an interview with the ABC on Monday, Ms Boylett said one lender eventually agreed to loan her the money so she could buy her first home in the Sydney beachside suburb of Coogee for $150,000 with a 15 per cent deposit.

However, Ms Boylett, the former administration general manager for hospitality giant Merivale — a company that’s accused of $129 million in wage theft — received a $2 million inheritance from founder John Hemmes in 2015.

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Kerrie Boylett said young people ought to make sacrifices to buy a home, like she did in the ‘90s. Picture: Facebook

With a variable interest rate of 19 per cent in 1995, Ms Boylett said she struggled to make ends meet and once had her electricity cut off because she couldn’t pay the bill.

She told the publication she didn’t go on holiday for four years, quit dining out, and bought the “cheapest car (she) could get for $1000” to make ends meet.

“I would have dinner parties at my place for friends, instead of going out, by buying two kilos of meat and making a salad and spaghetti bolognese and a cake. And that’s how I had friends and entertainment — at home,” Ms Boylett said.

“It was a struggle the first five years,” she added.

But it was Ms Boylett’s advice for Millennials that truly sparked uproar, as she suggested young people give up holidays, nights out and buying new technology so they can get onto the property ladder.

“They (Millennials) want, you know, the latest mobile phone, the latest iPad, they want a nice car, they want to go on holidays, they still want to go out to restaurants — they pay $20 or $30 for a drink if they go out, have a nice time,’ she said.

“You’ve got to say: ‘Right, am I prepared to keep my phone for four years? Am I prepared to cut back?’”

Ms Boylett sparked fury from young people, who said her story was “unhelpful”. Picture: Facebook

The ABC article noted that she had “upsized to a home in Balmain” which is worth “far more than what houses were worth in the mid-90s”.

Ms Boylett was one of just four beneficiaries to Hemmes’ estimated $800 million fortune, and was the only non-family member to receive a slice.

Merivale CEO Justin Hemmes, son of John, meanwhile faces a class action brought forth by former employees who claim he stole $129 million in unpaid wages.

The parties are in mediation, with the case set to go to trial in a matter of months if a settlement can’t be reached.

Should Mr Hemmes agree to pay out the maximum claim of $129 million, it would be the largest pay out in a hospitality class action in Australian history.

Ms Boylett received a $2 million inheritance from Merivale founder John Hemmes (right). CEO Justin Hemmes (left) faces a $129 million class action for wage theft. Picture: Nora Devai.

Ms Boylett’s housing advice provoked fury on social media, as younger Aussies struggle to break into the market.

In 1995, the median house price was about 6.7 times higher than the median single income. In 2022, it was 16.5 times more.

The median price for a house in Coogee — where Ms Boylett bought her first home for just $150,000 — has soared to a staggering $3.7 million. Units sell for an average of $1.32 million.

“My (heart) is now in pieces for this woman who struggled for a whole five years in the 1990s after buying a house for $150,000 in Coogee with 19% interest rates,’ journalist and author Amy Remeikis tweeted.

“She’s absolutely right — my phone is the reason I can’t afford to buy and not that homes are about $1m.”

My ❤️ is now in pieces for this woman who struggled for a whole five years in the 1990s after buying a house for $150,000 in Coogee with 19% interest rates. She’s absolutely right - my phone is the reason I can’t afford to buy and not that homes are about $1m https://t.co/VzrRPo5bQP

— Amy Remeikis (@AmyRemeikis) February 5, 2023

Readers slammed the publication for the “unhelpful” article.

“Oh God, another one of these complete naff articles. She borrowed what amounts to a credit card today. She’d have absolutely no chance in today’s market,” one user commented in response to an ABC Facebook post sharing the story.

“Please stop headlining these comparisons. They are unhelpful and invite the simplistic smugness of ‘If I could do it, anyone can,’” another said. “Context is at least as significant as effort. Hardship isn’t a competition.”

Ms Boylett was previously a manager at Merivale. Picture: Facebook

“Yeah I’ll take 19% interest on a $100,000 home over 8% on a $1,000,000 mortgage on the same house any day,” wrote a third.

Most experts agree that home ownership is increasingly out of reach.

AMP Capital chief economist Shane Oliver previously told Yahoo Media, if the 17 per cent interest rates of the 1990s applied today, it would be a “disaster” for the property market.

Mortgages are significantly larger, and houses pricier — while loan recipients are permitted to borrow a greater amount relative to income.

In fact, almost one-in-four new mortgages is considered “risky” according to the Australian Prudential Regulation Authority.

Meanwhile, an unsustainably tight rental market means even renting Aussies are caught between high prices and low availability, pushing some on low incomes towards homelessness.

News.com.au has reached out to Ms Boylett for comment.

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Originally published as Millennial fury over boomer house prices advice