A high school dropout turned property advisor has branded claims that Australia is in a cost of living crisis as ‘over the top’ and insists it’s never been easier to buy a home.
Jack Henderson, 28, claims to have built a property portfolio worth more than $35million since saving his labourer pay cheques to buy his first home in Sydney at just 18 – three years after he was kicked out of school.
His experience in the market has left him with the opinion that the reason Aussies are struggling to buy property is because they ‘want everything right now’.
He also suggested that Aussies wouldn’t struggle if they cut their excessive lifestyle costs.
‘Of course there are a lot of people doing it tough out there, but I think there is a cost of spending crisis,’ Mr Henderson told SBS Insight on Tuesday night.
‘It’s very easy to spend money with everything at our fingertips, everything’s on our phone. We want the newest of everything.
‘We want our cake and we want to eat it too.’
Mr Henderson’s remarks left several audience members visibly frustrated, but their anger didn’t deter him from offering some harsh advice.
Jack Henderson (pictured) told SBS Insight now is the ‘easiest it’s ever been’ to buy property, despite the cost of living crisis
When questioned by host Kumi Taguchi (pictured), Mr Henderson claimed Australia was in a ‘cost of spending crisis’ and contributed people’s financial woes to their lifestyle habits
‘I think everyone can do their bit to try and earn more money and cut what they spend,’ Mr Henderson continued.
‘But to say that there’s a a cost of living crisis I think is a little bit over the top.’
Pressing him further, host Kumi Taguchi questioned Mr Henderson: ‘What would you call it? Lifestyle?’
He answered: ‘I think it’s life. We got used to two per cent interest rates and we got used to everything being much more affordable than what it was.
‘You’ve only got to drive down a freeway and look at 90 per cent of the cars on the road and see they’re all new model cars.
‘I’m sure most people in the audience would open their phones up and it’s a brand new phone or one of the newest phones.
‘Those things aren’t cheap and they’re not free.’
Taguchi pushed for Mr Henderson to be more straightforward in his answers and asked him: ‘Why do you think some of us are struggling?’
The 28-year-old replied ‘people struggle in all economies’ but ‘people who keep up with the world will make more money than they ever have, and they’ll probably work less than they ever have’.
Audience members were bemused while listening to the property guru’s claims
Mr Henderson (left) bought his first home, a two-bedroom apartment in Coogee, for $720,000 at the age of 18
He also refuted claims that it’s harder than ever for Aussies to get into the property market.
‘I think it’s the easiest it’s ever been (to buy a home) with all the incentives that are out there for first time buyers in many states,’ Mr Henderson said.
‘You need a five per cent deposit, you pay no lender’s mortgage insurance, you pay no stamp duty.
‘The only thing easier than that would be giving you a house for free.’
Many audience members looked bemused with his comments, including economist Evan Lucas.
‘At no point in history have you had to work harder to get that five per cent deposit to actually get to a point that you can then buy a home,’ he explained.
‘The other thing that you need to talk about with that answer as well is where are you buying this house?
Mr Henderson’s (pictured) comments on SBS Insight were labelled ‘one dimensional’ by some viewers and ‘honest’ by others
‘Because the other thing that has happened over the last 30 years, compound interest is a beautiful thing, but it can also be a double-edged sword, in that housing price compound interest now has, for most people, blown out for the places that they would want to buy in the areas that they can work, to therefore keep servicing the mortgage that they want to have, has never been higher.
‘The other difference is those that have assets versus those that don’t has also never been larger.’
However, some viewers online applauded Mr Henderson for his ‘honesty’.
‘Agree totally. I don’t rely on anyone but myself. I have worked hard for my fabulous retirement,’ one wrote.
‘Good on you for going on the show, would have been tough to do,’ another said.
However, other viewers were left unimpressed with one commenter labelling Mr Henderson’s response as ‘very one dimensional’.
‘Spoken like someone who’s likely experienced minimal adversity in life and lacks empathy for others,’ they wrote.
‘Maybe when we don’t pay so much tax, we won’t be so concerned about what the government does or doesn’t do for us.’
Mr Henderson runs his property buyer’s agency based in Newcastle
It’s not the first time Mr Henderson’s controversial views on budgeting and the property market have divided Aussies.
He bought his first home, a two-bedroom apartment in Coogee, for $720,000 at the age of 18 while working as a construction labourer still living at home.
He believes a large part of why young Aussies struggle to buy their first property is the need to keep up with ‘Instagram life’.
‘It’s not cool to say that you live in a certain suburb when it’s not glamorous like everyone wants,’ he previously told Daily Mail Australia.
‘I think the the biggest issue is people want their cake and they also want to eat it too. They also want to travel to Europe once a year and drive the best car.
‘You’re going to make sacrifices regardless, so you can either choose to be young and make sacrifices or you can choose to be old and make sacrifices.’
