Baby Boomers reveal what it was really like when they bought their first homes

Baby Boomers have revealed what it was really like when they bought their first homes, with young Aussies told they need to “stop spending”.

The great Aussie dream of homeownership seems to be getting further away for our youngest generations, with rising house prices, the cost of living crisis and soaring inflation some of the major issues facing Gen Zers and Millennials trying to get into the housing market.

For many, saving for a deposit under these conditions and then finding a home within their budget feels almost impossible – but Baby Boomers say there are extra things young Aussies could be doing to help them achieve their housing dreams.

Dianne, 59, bought her first home in 1988 in Perth, Western Australia, for $65,000 with her late husband.

Speaking to news.com.au, she said the younger generations seem to prioritise their spending in a different way than she did when she was saving for her first home.

“There are probably more things to spend your money on that was not available 30 years ago, such as internet, mobile phones, Netflix, “ Dianne said.

“The younger generation seem to eat out a lot more, have new cars, travel, etc, which is more important to them than having a house.”

She added: “If you want a home, you need to save and not rely on handouts from the government.”

Dianne was 25 when she bought her first home. Picture: Supplied

She and her husband saved by not eating out, having minimal furniture and rarely going on holidays. Picture: Supplied

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When Dianne bought her first home at the age of 25 with her husband, she said there were no First Home Owner incentive schemes or rebates and “you had to look after yourself”.

In 1989, the couple sold their house in Western Australia and moved to Victoria, where they were both originally from.

Dianne was about to give birth to their first child so they were surviving off her husband’s $38,000 wage, which meant that they couldn’t afford a house in Cheltenham where they both grew up.

Instead, they bought in Frankston for $145,000 when interest rates were at 17 per cent.

“We had one car and it was second hand. As credit wasn’t that readily available, we would have to save up for things or put on lay by and pay off before we got the goods,” Dianne said.

“I remember having boxes for bedside tables for a few years covered with table cloths. We didn’t have much furniture and our TV was second hand too.”

They hardly ever ordered takeaway and rarely had red meat due to how expensive it was.

Holidays were even more rare and, if they did go away, it was to a friends holiday house or a caravan park.

“We always paid our bills which came before luxuries,” she said.

However, Dianne noted that “every generation has its struggles” and she has seen her youngest daughter having to buy a home in the outer suburbs of Melbourne and commute to work in the city because it was impossible to afford anything closer.

Tracey Horton, a personal growth keynote speaker, is another Baby Boomer who thinks homeownership now is a very different experience than what it used to be.

Now 59, Tracey bought her first home at 25 with her husband.

They bought a “simple fibro house” one block back from the beach in Runaway Bay on the Gold Coast for $120,000 in 1993.

Tracey Horton bought her first home in Australia in 1993 for $120,000. Picture: Supplied

They had saved a $20,000 mortgage and, at the time, Tracey was home with their three children while her husband Paul worked.

“Paul earned $450 a week and we gave the bank $200 of that,” she explained.

“And we just lived very, very simply. Baby Boomers, we were all raised to believe that you own property, that’s your first goal in life. And that you work really hard to be free by the time you’re 50.”

Like Dianne, Tracey and her family very rarely ate out, unless it was for a special occasion like a birthday.

But she didn’t see this as a “sacrifice” they were making, instead she thinks it was just a different mindset that was common back then but less so now.

“I have four adult daughters all in the market, two of them own, two of them are looking, and they eat out four times a week. We would never have done that,” she explained.

“We were very careful with every cent, we didn’t have discretionary spending of any sort.”

Family holidays were limited to camping at Lennox Head where the cost and set up would be shared with another family.

“We ended up with four children, we couldn’t have afforded a hotel if we wanted to. But we didn’t really think like that, that’s the thing,” she said.

“My kids go to Bali every other year. We wouldn’t have thought like that. Now empty nesters at 59. We’re thinking like that now.”

In Tracey’s house, the mortgage always came first, and if that meant only having $40 left for food for the week then it would be eggs or toast or her and her husband wouldn’t eat so the children could.

The biggest advice the 59-year-old would offer young Aussies now is to “stop spending”, noting that she never had things like a $190 pair of shoes or a $400 handbag.

“Stop eating out. Start having barbecues at home. Drill down on your discretionary spending. It is out of whack because it is like they just have this ‘to hell with it’ attitude,” she said.

But even though Tracey and her husband worked hard to afford their first home, she doesn’t believe you can compare buying a house when she did to trying to buy one now because “the world has changed so much”.

“Logistically when you do the math, we were better off even though we were paying 18 per cent interest,” she said.

“We were better off percentage wise against what we could earn. We were better off on fact that women could take time off to have the children.

“My girls are going back to work with their babies at six months to pay the mortgage. That’s the truth.”

One person who doesn’t agree that young people have it harder today when buying their first home is 63-year-old Graeme.

“It is easier today,” he told news.com.au, noting that much of the process is “all done via internet”.

“Don’t have to dress up and go see bank manager. Banks protect purchasers pretty well these days,” he said.

Graeme said that, unfortunately, “the people of today want everything now” and aren’t willing to go without.

“They don’t do lay by. They want it all shiny and new. They don’t buy basic houses, they want new and flash with all the trimmings,” he said.

“They also want to travel before purchasing a home and this diminishes savings. You can’t cry poor after you’ve spent your money and expect someone else to bail you out.

“It’s not harder, they need to change their habits, including take-out food and food deliveries, expensive mobile phones and plans, Stan and Netflix.”

The 63-year-old bought his first home when he was 23 in Cranbourne, Victoria, for $42,500.

He told news.com.au he “had to save like crazy” and was earning around $100 a week, with his partner earning less than that.

“Times were tough. Not to mention when bubs came along. No maternity or paternity leave payments. It was career or kids. Babysitting was done by grandparents and relatives,” he explained.

The couple never ate out, bought second hand furniture and cars, put appliances on lay-by and avoided all unnecessary spending.

Graeme said it was a struggle to make repayments, with their loan starting at 12 per cent and going up to 18 per cent.

“If you want a house you must save and be responsible. Don’t always need to be the best in the street,” he said.