If the Internet is to be believed, millennials are struggling financially. They saddled with a part-time economy, record-breaking student debt, and a massive sense of entitlement that prompts them to want the spoils of previous generations without the work those generations put in.
But fear not, millennials, Australian “millionaire and property mogul” Tim Gurner has a solution to that pesky problem of early life home ownership: stop spending money on all that avocado toast.
Avocado prices are going up, Gurner says, and millennials who love to buy the fruit (we checked on that) smashed on locally sourced organic whole-grain gluten-free toast are literally eating the downpayment on their first home.
In fairness to Gurner, his overall point is correct. According to economists, millennials do have different spending habits than their parents and grandparents, and value “of the moment” luxuries more than they do long-term investments.
Shelling out money for unnecessary things that don’t have great ROI, like fancy toast or a Gender Studies degree, can have an impact on your long-term financial stability.
But, it turns out, you have to consume a lot of avocado toast to save up for a downpayment on a house. It depends heavily on where you live, but the average American home costs around $200,000, making $40,000 the average 20% down payment. Unless you’re consuming somewhere between four and 10,000 servings of avocado toast while house hunting, cutting it out of your diet isn’t going to make much of a dent in your savings.
If you live in LA, for example, where property values are much higher, you’ll be long dead before your avocado toast sacrifice yields marked results. And that’s even if avocado toast remains cool. Savvy food watchers say asparagus toast could be where it’s at.
If it all sounds a bit “let them eat cake” to you, though, that’s because Gurner doesn’t appear to have taken his own advice, at least not initially. Although he was adept at picking his real-estate investments, his first down payment, of $34,000, came from his grandfather, not any breakfast-related sacrifices.