Latest news with #generationalwealth
Telegraph
a day ago
- Business
- Telegraph
‘Why should we have to downsize?': How boomers became the victim generation
We're looking for readers in different generations to talk about change within their families, such as a grandparent and grandchild's experiences of buying their first home. To get involved, email us at money@ Baby boomers have nothing to complain about. Bumper pensions. Free university education. House prices that have gone through the roof. Some of them even got to see The Beatles. This, at least, is the idea that's caught fire over the last 20 years, a period in which the debate about inequality in Britain has been reframed as a tug-of-war between generations. Boomers – the post-war cohort born between 1946 and 1965 – are blamed for hoarding wealth after winning the economic lottery. The losers are said to be Generation Z and millennials – born between 1980 and 2009 – who face sky-high mortgages and record-breaking rents, stagnating wages, massive student debt and outrageous student loan repayments, plus an unstable jobs market. There is a stigma attached to being a 'boomer', which has become shorthand for greedy, entitled and out of touch. Boomers have been accused of 'stealing their children's futures' by taking more than their fair share. Many believe they are unfairly victimised – pilloried for their wealth, and told to downsize out of their house to make way for younger families. But are they right to feel that way? 'Divisive and harmful tensions in society' A report by the House of Commons' Women and Equalities Committee in February confirmed what many older citizens have experienced first-hand. It found 'clear evidence' of ageist stereotyping across British media, with debates about intergenerational fairness tending to pit younger and older generations against each other in a 'perceived fight for limited resources'. The report went on: 'Older people are also frequently stereotyped as wealthy 'boomers' living comfortable lives in homes they own while younger generations struggle on low incomes, unable to afford to enter the housing market and struggling with high rents.' These 'narratives', the committee said, have fuelled 'divisive and harmful tensions in society'. This resentment doesn't come from nowhere. Recent figures released by the Office for National Statistics (ONS) showed that boomers are by far Britain's richest cohort. The average wealth of households aged 65 to 74 is £502,500 – more than 30 times that of Gen Zs aged 16 to 24, who typically have £15,200. Boomers' wealth is also 4.6 times greater than those aged 25 to 34, who are mainly younger millennials, with £109,800. This may not seem very surprising given older people have had a lifetime to accumulate savings, homes and pensions. 'There's an extremely strong life-cycle component to wealth,' says Simon Pittaway, a senior economist at The Resolution Foundation think tank. 'Most people start working lives with very little, build it up through peak working years then run it down in retirement. 'This has been the case for a long time. But we're seeing that profile getting starker.' The gap between the generations has grown since the financial crisis, which is often blamed on the boomers, who, the argument goes, were steering the ship at the time. A Resolution Foundation study found that between 2006-08 and 2018-20, median wealth among Britons in their 60s rose by 55pc in real terms, but median wealth for those in their 30s fell by 34pc. At the same time, the share of Britain's wealth held by the under-40s has fallen from 7.5pc in 2010 to 4pc today. It's statistics like these that mean boomers are often implored to give away their hoarded wealth, or downsize into smaller properties to make room for young families. 'Older people aren't hoarding – they're just afraid of change' John Griffiths, 80, insists his generation is in fact supremely generous – and shouldn't be discriminated against for having done well. 'It's a gimmick in the financial media to blame the boomers,' he says. 'It's not our fault property went up the way it did in the 60s and 70s. [The house price rises] drove most of us out of London.' Griffiths was born shortly after VE Day in May 1945, putting him right on the cusp of the boomer bracket. 'I tend to count myself as one of them,' he says. After training as a chemical engineer, he spent 20 years in the gas industry and the North Sea designing and building offshore oil facilities. He went on to found his own marine energy consultancy, advising clean energy firms and governments on how to best harness the power of waves and tides. He retired five years ago at the age of 75. His successful career has allowed him to pass on lump sums totalling £500,000 to his three children, who are in their 40s and 50s and have children themselves. A large part of his financial security derives from property wealth. The house in Wimbledon that he bought with his wife Valerie in 2006 for £545,000 is now worth £1.3m. Homeowners aged 60 and over hold more than half of the nation's owner-occupied housing wealth, totalling an estimated £2.89 trillion, according to estate agents Savills. Two thirds (67pc) of homeowners aged 65 and over have two or more spare rooms in their property, even as a shortage of affordable housing prevents young families from buying their first home. The Tony Blair Institute think tank has called for larger properties to be taxed more to encourage owners to downsize. But Griffiths believes pressuring older people to vacate their homes is unfair. 'It doesn't sit well with me. I don't think older people are hoarding. They stay where they are because they're afraid of change. 'Many don't have supportive families to help them, and are stuck where they are.' The rise of boomer bashing Dr Jennie Bristow, a reader in sociology at Canterbury Christ Church University, traces boomer bashing back to the collapse of traditional political frameworks at the end of the 20th century. 'From the 1990s, we started trying to explain societal problems that went beyond Left and Right,' she says. 'It's still playing out now in the culture wars.' It was a time when demographic anxieties were spreading across the Western world. Ageing populations mean relatively fewer younger workers supporting the swelling ranks of elderly pensioners through the welfare system. Old-versus-young became the salient faultline. 'The narrative that emerged was that the 2008 financial crisis was due to policy decisions, and also cultural individualism, that was personified by the baby boomer generation. These are the people who are hoarding wealth and will benefit from big pensions. 'For the Right, it's an argument for restructuring the welfare state. And for the Left, it's used as a reason for more welfare and less Thatcherite individualism. It brought those two opposites together.' Bristow believes anti-boomer sentiment peaked in 2010, the year that David Willetts, a former Tory MP turned public intellectual, published an influential book called 'The Pinch: How the Baby Boomers Stole Their Children's Future'. She says the tendency to blame the boomers has turned into a 'frenzy' that ignores inequalities within generational cohorts. 'The boomers associated with the 1960s generation, born straight after the war, did reap a lot of the benefits of that time. There were a lot of possibilities, economic opportunities, and they ended up with good pensions. But not everyone was part of this. It was actually quite a narrow section of society. 'Younger boomers came of age in the far more pessimistic 1970s. Yes, people got grants for university, but only 7pc of the cohort went.' 'I get sick of boomers blaming young people' Richard Merry was born in 1955, putting him right in the middle of the boomer generation. After leaving school at 16, Merry joined the armed forces, eventually becoming a member of a special army unit that sent him all over the world during a 50-year career. He has worked hard to retire three years ago in relative comfort, but acknowledges that younger generations have a tougher ride in many ways. 'People just don't earn that sort of money any more,' the 69-year-old says. 'I get a little bit sick with the boomers saying that it's young people's own fault for not getting on the property ladder.' Merry bought a three-bedroom semi-detached house in south-east London for £77,000 in 1990. It is now worth over £1m. It was easily affordable on his salary of around £32,000, equivalent to £80,000 today. 'My children, both in their 30s, work incredibly hard and lead tough lives. You simply can't compare property prices and deposits now to what they were.' But it's not all plain sailing for his generation. Care costs, for instance, are 'crucifying' the boomers, he says. His own mother's old age care cost £320,000 over three years – money that would have gone to Merry and his sister. They had to sell their mother's home to pay for it. 'All the talk is that boomers are hoarding wealth, but we're going to be skinned alive when it comes to care costs.' On tax and earnings too, it hasn't been the easiest of rides. 'People at the bottom benefitted from increases in the minimum wage, but middle earners like me have had the stuffing kicked out of them.' Boomers have 'rigged the game in their favour' On the contrary, Angus Hanton, of the Intergenerational Foundation think tank, believes boomers have 'heavily rigged the game in their favour' over decades by repeatedly voting in governments that have given them a good deal. 'Boomers have fought tooth and nail to protect their interests,' he says. 'We can see that most starkly in how the tax system is structured – what's taxed heavily is earned income. Younger working people pay income tax at a high rate from a low level of earnings, plus National Insurance and student loan repayments, which is basically a tax. 'But unearned income is taxed very lightly – money in Isas and Sipps, and capital gains tax is half the rate of income tax.' Hanton, a boomer himself, rejects the idea that the focus on competing age groups squeezes out other factors from the conversation – like class, race or gender. 'Generational inequality is a really important lens and we shouldn't refuse to look through it just because there are other lenses available.' Evidence suggests that many younger people are looking at the world – and their claim on the material wealth of their elders – through this lens. Research by Moneyfarm, an investment platform, found that two in five millennials fear their parents were frittering away 'their' inheritance, while a fifth said their 'spendthrift' parents were selfish for failing to consider their children or grandchildren's economic wellbeing. Meanwhile, 61pc of Gen Z feel they have to work harder than their parents did, according to YouGov polling. The reality is that many young people will benefit indirectly from the economic success of their parents and grandparents. A much-cited report from estate agents Knight Frank found that millennials are set to become the 'richest generation in history', thanks to the steep rise in the value of property assets accumulated by the generations before them which will be passed on when they die. Yet Bristow points out that even if millennials as a group are in line for a huge windfall, the only ones who will actually benefit are those with well-off parents who rode the property wave. Boomers, too, all tend to be tarred with the same brush. 'You can look at it two ways, generationally,' she says. 'Not all older people are wealthy. So saying boomers have stolen their children's future doesn't stack up.'
Forbes
2 days ago
- Business
- Forbes
Building Generational Wealth: How To Ensure Your Assets Last
Man taking photo of happy multi-generation family with smartphone. The United States is in the midst of one of the largest wealth transfers in history. With the Great Wealth Transfer underway, the latest figures from Cerulli (as of December 2024) show that $124 trillion will transfer through 2048, with $105 trillion going to heirs. Estate planning is no longer just for the wealthy—it's something everyone with assets should consider. According to Jen Galvagna, Head of Trust, Estates and Tax at Bank of America Private Bank, and John Nebeker, a financial advisor and author of The Family Bank: The Key to Generational Wealth, having a clear plan in place is crucial for anyone looking to pass on wealth thoughtfully. "When I start a class, I always ask, 'What happens to your assets if you die without a will or estate plan?' Almost always, someone answers, 'The state takes your property,'" Galvagna says. "But that's not true. The state simply decides where your assets go, and it may not be where you want them." Without a proper estate plan, your assets will be distributed according to your state's intestacy laws, which may not reflect your wishes. Galvagna points to the case of musical legend Prince, who died without a will and left his estate tangled in a years-long legal battle. "When you don't plan, others will decide where your assets go," she notes. "In Prince's case, his music and legacy were at risk, and ultimately, the distribution wasn't what he likely would have wanted." Failing to create an estate plan can lead to pitfalls in asset distribution, guardianship, and financial decision-making. For parents, one of the most important decisions is ensuring that their children, especially minors, are taken care of. Galvagna suggests that an estate plan should include asset distribution, designate a guardian for your children, and provide instructions in case you become incapacitated. "If you have minor children, you need to decide who will care for them if something happens to you," Galvagna says. "And just as important, you need a strategy in place for what happens if you're unable to make financial decisions for yourself." As the population ages, the need for estate planning has never been more urgent. Without a plan, the risks only increase as people age. One of the biggest misconceptions about estate planning is that it's only for the ultra-wealthy. Galvagna debunks this myth, saying that anyone with assets, no matter how small, should have a plan. "It's a common myth that trusts are only for the ultra-high-net-worth," she says. "Anyone with assets should have a say in how those assets are distributed. Trusts provide a way to control that distribution over time. It's not just about money—it's about your legacy." In fact, trusts allow individuals to set up long-term strategies for distributing their assets. A trust ensures that beneficiaries are taken care of for generations instead of handing them a lump sum that could quickly be spent. One strategy for preserving wealth across generations is the "Family Bank" concept, popularized by financial advisor John Nebeker. In his book The Family Bank: The Key to Generational Wealth, Nebeker explains how some of America's wealthiest families, including the Rockefellers, have used this model to sustain and grow their wealth. 'The Family Bank is about creating opportunity, not entitlement,' Nebeker says. 'Families replace gifts with loans, and entitlements with opportunities.' Instead of leaving a lump sum inheritance, a Family Bank provides structured loans to heirs for significant life milestones—like education, buying a home, or starting a business. This approach encourages responsibility, and allows families to retain control over the assets, ensuring wealth is used wisely and not squandered. For families looking to build generational wealth, the Family Bank offers a structured way to ensure assets are used responsibly, preserving long-term financial success. Family conflict is one of the biggest challenges in estate planning. Galvagna recommends open and transparent conversations with family members to avoid surprises and misunderstandings after your passing. "There's nothing worse than family fighting over who gets what," she says. "Be upfront with your kids and even involve them in the decision-making process. For instance, if you have tangible property, like a family heirloom, ask your children what they'd like to inherit." She shares an example of a family with four children and valuable heirlooms. By having each child choose their top three items, the parents were able to distribute the property fairly without any conflict. Parents with wealth often worry that their children will squander their inheritance. Galvagna explains that trusts can set restrictions on how and when beneficiaries can access funds, preventing misuse or financial irresponsibility. "Trusts are a powerful tool to protect assets," she says. "If you leave an inheritance outright, it becomes subject to divorce settlements or creditors. But with a trust, you can control how and when the assets are distributed, even for health, education, and maintenance." For parents concerned about their children's ability to manage large sums of money, Galvagna suggests creating specific conditions for accessing trust funds. For example, a child may only be able to use their inheritance for buying a home or starting a business rather than for frivolous spending. While many people think estate planning is only for the elderly or the ultra-rich, Galvagna argues that it's something everyone should do—especially if they have children or significant assets. Whether it's a 401(k), a house, or savings, planning ahead ensures your wishes are honored and your legacy is preserved. "Estate planning isn't about death—it's about ensuring your family is protected, no matter what happens," she says. "Whether you're in your 40s or 70s, it's never too early to start." By taking the right steps and working with a professional advisor, you can create a plan that ensures your wealth is passed on as intended—without unnecessary legal battles or family disputes.
News.com.au
5 days ago
- Business
- News.com.au
How Melbourne's 1980s property boom created a wealth gap that locked out young buyers forever
The Baby Boomers really did have it better when it comes to housing. Shock new figures show that inflation and wage growth has accounted for only a tiny fraction of Melbourne's property price rises since the 1980s. Instead, decades of undersupply of new homes and generations of Victorians bidding up prices have driven prices to levels that will permanently keep today's first-home buyers out of some suburbs. Whisk taker: Dessert Masters winner's $100k gamble Today's $900,000 median house price would more than cover the cost of a 1980s Toorak house, $160,500 at the time or about $824,000 in today's money. The suburb's typical residence is now worth $4.8m, almost six times higher, and far in front of inflation. Suburbs like Malvern, Brighton, Kew and Albert Park have also recorded inflation-adjusted increases of between $2m and $3m. Even in more affordable pockets, younger generations are now struggling to enter the same markets their parents once bought into with modest incomes and low deposits. PropTrack senior economist Eleanor Creagh said the data 'lays bare' the widening generational wealth divide, and shows just how much opportunity has been locked behind property prices. 'Homeowners who bought in the '80s or '90s are now sitting on huge capital gains,' Ms Creagh said. 'Today's first-home buyers face a completely different market, higher deposits, higher debt burdens, and affordability stretched close to record lows.' According to the Australian Bureau of Statistics, the average weekly earnings for full-time adults in March 1980 were just $245.70, or around $12,800 a year. Adjusted for inflation, that's roughly equivalent to $54,600 in today's dollars. In contrast, the latest ABS figures show average full-time earnings are now $1,975.80 a week, or just over $102,000 annually. While that represents a fourfold increase, house prices in some Melbourne suburbs have surged more than 30-fold over the same period. Even in outer suburbs like Ferntree Gully, once a launch pad for working-class homeownership, prices have soared. A house that cost $46,000 in 1980 — about $236,000 today — now has a median of over $870,000. And while Baby Boomers frequently cite double-digit interest rates in the 1980s — which reached as high as 17 per cent by 1989 — Ms Creagh said they were borrowing far smaller sums relative to income. 'It's a very different landscape,' she said. 'Back then, prices were much lower relative to wages. 'Today, you're borrowing more, for longer, just to get in.' M R Advocacy director and buyers' agent Madeleine Roberts said modern buyers were being forced to think strategically, even creatively, just to get a foot on the ladder. 'It's not about buying your forever home anymore,' Ms Roberts said. 'It's about building equity, through rentvesting, buying in growth corridors, or even interstate' 'Everyone wants the dream home, but the reality is you've got to start somewhere. And that somewhere often looks very different now.' Ms Roberts said while many young buyers still dreamt of owning property, their journey was shaped more by investment strategy than lifestyle goals. 'In the '80s you could live out of home, get married young and buy a place not long after,' she said. 'These days you might be living at home into your late 20s just to save.' Kay & Burton managing director Ross Savas said prestige suburbs like Toorak, Malvern and Armadale continue to attract intergenerational wealth, and will likely become even harder to access in decades to come. 'There's a new wave of wealth entering the market — tech entrepreneurs, global buyers, young professionals,' Mr Savas said. 'But it's underpinned by long-held family wealth. 'People still talk about the homes they missed out on 20 years ago. I've no doubt they'll be saying the same thing in another 20.' Mr Savas said the enduring appeal of Stonnington postcodes came down to lifestyle, elite schools, vibrant retail, and proximity to the CBD, but also scarcity. 'This is still one of the last asset classes in Australia that benefits from tax-free capital growth,' he said. 'That makes it a wealth-building opportunity as well as a lifestyle choice.' While today's buyers are unlikely to see the same meteoric gains their parents did, PropTrack senior economist Eleanor Creagh said Melbourne housing still held long-term potential, especially as population pressures and supply constraints continue. 'You may not get Toorak, but you can still build wealth,' Ms Creagh said. 'Start where you can, let compound growth work for you. 'The earlier you start, the more options you'll have.' Top Melbourne suburbs where house prices soared since 1980 Suburb 1980's Average Price 1980 Price (Indexed to 2025) 2025 Projected Price Difference (2025 – 1980) Toorak $160,500 $824,200 $4.80m $4.64m Deepdene $66,450 $341,200 $3.81m $3.75m Canterbury $70,500 $362,000 $3.48m $3.40m Malvern $65,000 $333,800 $3.19m $3.12m Hawthorn $66,085 $339,300 $3.07m $3.00m Brighton $79,750 $409,500 $3.03m $2.95m Balwyn $49,500 $254,200 $2.90m $2.85m Middle Park $61,000 $313,200 $2.67m $2.61m Kew $60,500 $310,700 $2.66m $2.60m Camberwell $62,000 $318,400 $2.58m $2.52m Hawthorn East $60,000 $308,100 $2.50m $2.44m Armadale $68,500 $351,800 $2.44m $2.38m Mont Albert $53,000 $272,200 $2.42m $2.37m Eaglemont $59,250 $304,300 $2.41m $2.35m Ivanhoe East $67,500 $346,600 $2.38m $2.31m Black Rock $60,250 $309,400 $2.35m $2.29m Albert Park $47,750 $245,200 $2.32m $2.27m Hampton $47,000 $241,300 $2.32m $2.27m Surrey Hills $49,000 $251,600 $2.31m $2.26m Balwyn North $66,000 $338,900 $2.31m $2.24m Glen Iris $53,325 $273,800 $2.26m $2.20m Caulfield North $69,000 $354,300 $2.23m $2.16m Caulfield $57,723 $296,400 $2.20m $2.14m Park Orchards $74,350 $381,800 $2.20m $2.13m Kew East $57,750 $296,500 $2.17m $2.11m Elwood $50,000 $256,800 $2.14m $2.09m Sandringham $51,500 $264,500 $2.06m $2.01m Brighton East $58,000 $297,800 $2.04m $1.98m Malvern East $50,000 $256,800 $2.00m $1.95m Beaumaris $61,000 $313,200 $2.00m $1.94m Elsternwick $52,000 $267,000 $1.95m $1.90m South Yarra $70,000 $359,500 $1.94m $1.86m Ashburton $40,500 $208,000 $1.87m $1.83m Ormond $41,375 $212,500 $1.86m $1.82m Alphington $35,500 $182,300 $1.84m $1.80m Aberfeldie $42,000 $215,700 $1.81m $1.77m McKinnon $41,500 $213,100 $1.80m $1.76m Sorrento $35,000 $179,700 $1.79m $1.75m Ivanhoe $46,500 $238,800 $1.76m $1.72m Fitzroy $48,250 $247,800 $1.72m $1.67m Caulfield South $46,000 $236,200 $1.72m $1.67m Essendon $42,500 $218,200 $1.71m $1.67m Templestowe $68,000 $349,200 $1.72m $1.65m Carnegie $38,000 $195,100 $1.68m $1.64m Mont Albert North $48,500 $249,000 $1.65m $1.61m Box Hill $36,000 $184,900 $1.65m $1.61m Glen Waverley $51,500 $264,500 $1.66m $1.61m St Kilda East $61,500 $315,800 $1.66m $1.60m Princes Hill $57,250 $294,000 $1.65m $1.59m Carlton North $49,500 $254,200 $1.64m $1.59m Fairfield $31,500 $161,800 $1.60m $1.57m Mount Waverley $48,000 $246,500 $1.62m $1.57m Murrumbeena $40,000 $205,400 $1.61m $1.57m Northcote $29,250 $150,200 $1.60m $1.57m Strathmore $46,500 $238,800 $1.61m $1.57m Bentleigh $42,000 $215,700 $1.61m $1.57m Donvale $52,975 $272,000 $1.61m $1.56m Mount Eliza $65,000 $333,800 $1.61m $1.55m Doncaster East $51,000 $261,900 $1.58m $1.53m Clifton Hill $39,000 $200,300 $1.56m $1.52m Port Melbourne $36,000 $184,900 $1.55m $1.52m Lower Plenty $57,000 $292,700 $1.58m $1.52m St Kilda $42,000 $215,700 $1.54m $1.50m Williamstown $36,000 $184,900 $1.52m $1.49m South Melbourne $44,000 $225,900 $1.53m $1.49m Prahran $43,500 $223,400 $1.53m $1.49m Fitzroy North $40,875 $209,900 $1.51m $1.47m Blackburn $42,500 $218,200 $1.51m $1.47m Moonee Ponds $36,000 $184,900 $1.48m $1.44m Bentleigh East $41,500 $213,100 $1.48m $1.44m Ashwood $38,250 $196,400 $1.47m $1.43m Parkdale $37,975 $195,000 $1.46m $1.42m North Warrandyte $55,000 $282,400 $1.45m $1.40m Vermont South $60,000 $308,100 $1.46m $1.40m Mount Martha $44,800 $230,000 $1.44m $1.40m Hughesdale $30,650 $157,400 $1.43m $1.40m Doncaster $59,000 $303,000 $1.45m $1.39m Highett $38,000 $195,100 $1.43m $1.39m Hampton East $38,500 $197,700 $1.42m $1.38m Box Hill South $40,000 $205,400 $1.42m $1.38m Thornbury $30,000 $154,100 $1.39m $1.36m Windsor $42,750 $219,500 $1.40m $1.36m Warrandyte $50,125 $257,400 $1.40m $1.35m Richmond $34,000 $174,600 $1.38m $1.35m Balaclava $39,000 $200,300 $1.38m $1.34m Wheelers Hill $55,000 $282,400 $1.40m $1.34m Heidelberg $48,000 $246,500 $1.37m $1.33m Somers $44,000 $225,900 $1.36m $1.32m Blairgowrie $29,035 $149,100 $1.35m $1.32m Brunswick East $29,000 $148,900 $1.35m $1.32m Carlton $50,000 $256,800 $1.37m $1.32m Burwood $40,500 $208,000 $1.36m $1.32m Rosanna $47,000 $241,300 $1.36m $1.31m Blackburn South $40,500 $208,000 $1.33m $1.29m Templestowe Lower $60,000 $308,100 $1.34m $1.28m Box Hill North $39,000 $200,300 $1.32m $1.28m Oakleigh $32,000 $164,300 $1.31m $1.27m Mentone $49,000 $251,600 $1.31m $1.26m Aspendale $35,500 $182,300 $1.29m $1.26m Mordialloc $35,000 $179,700 $1.30m $1.26m Edithvale $33,000 $169,500 $1.29m $1.26m Blackburn North $40,000 $205,400 $1.29m $1.25m Brunswick West $33,000 $169,500 $1.28m $1.25m Bulleen $49,000 $251,600 $1.30m $1.25m Ascot Vale $34,250 $175,900 $1.28m $1.25m North Melbourne $41,750 $214,400 $1.28m $1.24m Burwood East $45,500 $233,600 $1.29m $1.24m Brunswick $28,000 $143,800 $1.26m $1.23m Cremorne $30,000 $154,100 $1.26m $1.23m Vermont $44,500 $228,500 $1.28m $1.23m Eltham North $52,050 $267,300 $1.27m $1.22m McCrae $33,000 $169,500 $1.25m $1.22m Moorabbin $42,975 $220,700 $1.27m $1.22m Niddrie $37,000 $190,000 $1.25m $1.22m Newport $26,000 $133,500 $1.25m $1.22m Abbotsford $30,800 $158,200 $1.23m $1.20m Essendon North $37,250 $191,300 $1.23m $1.19m Wantirna South $41,800 $214,600 $1.22m $1.18m Clayton $33,100 $170,000 $1.21m $1.18m Eltham $49,500 $254,200 $1.22m $1.17m Chadstone $35,250 $181,000 $1.20m $1.17m Ringwood North $43,500 $223,400 $1.22m $1.17m Cheltenham $43,500 $223,400 $1.20m $1.16m Oakleigh East $35,500 $182,300 $1.19m $1.15m Patterson Lakes $37,360 $191,800 $1.18m $1.14m Oakleigh South $37,875 $194,500 $1.18m $1.14m Forest Hill $41,000 $210,500 $1.19m $1.14m Collingwood $31,000 $159,200 $1.17m $1.14m Pascoe Vale South $36,500 $187,400 $1.17m $1.13m Preston $30,500 $156,600 $1.16m $1.13m Altona $36,000 $184,900 $1.17m $1.13m Coburg $29,625 $152,100 $1.16m $1.13m Viewbank $52,000 $267,000 $1.17m $1.12m Safety Beach $31,000 $159,200 $1.15m $1.12m Macleod $41,000 $210,500 $1.15m $1.11m Frankston South $45,000 $231,100 $1.16m $1.11m Nunawading $38,000 $195,100 $1.15m $1.11m Keilor $55,750 $286,300 $1.16m $1.10m Spotswood $26,500 $136,100 $1.12m $1.10m Mitcham $37,000 $190,000 $1.14m $1.10m Kingsville $24,000 $123,200 $1.12m $1.10m Yarraville $25,500 $130,900 $1.12m $1.09m Seddon $20,000 $102,700 $1.10m $1.08m Montmorency $39,975 $205,300 $1.11m $1.08m Maribyrnong $33,125 $170,100 $1.10m $1.07m Mornington $35,000 $179,700 $1.10m $1.06m Wantirna $44,500 $228,500 $1.10m $1.06m Olinda $40,000 $205,400 $1.10m $1.06m Kensington $25,000 $128,400 $1.08m $1.05m Mulgrave $40,000 $205,400 $1.09m $1.05m Dingley Village $44,000 $225,900 $1.07m $1.03m Rowville $36,630 $188,100 $1.05m $1.02m Flemington $30,250 $155,300 $1.04m $1.01m Diamond Creek $41,000 $210,500 $1.05m $1.01m Pascoe Vale $35,000 $179,700 $1.03m $1.00m Heathmont $38,925 $199,900 $1.04m $999,075 Bonbeach $30,975 $159,100 $1.02m $994,025 Greensborough $43,500 $223,400 $1.03m $991,500 Oak Park $38,500 $197,700 $1.03m $989,000 Ringwood $38,500 $197,700 $1.02m $981,500 Clarinda $39,000 $200,300 $1.01m $974,000 Keilor East $44,000 $225,900 $1.02m $974,000 Yallambie $49,000 $251,600 $1.01m $963,000 Croydon North $42,000 $215,700 $1.00m $958,500 Ringwood East $34,975 $179,600 $991,000 $956,025 Rye $28,000 $143,800 $975,000 $947,000 Coburg North $32,000 $164,300 $972,500 $940,500 Dromana $30,000 $154,100 $970,000 $940,000 Gisborne $44,500 $228,500 $980,000 $935,500 Avondale Heights $40,000 $205,400 $975,000 $935,000 Scoresby $40,000 $205,400 $970,000 $930,000 Wandin North $30,650 $157,400 $960,000 $929,350 Chelsea $35,000 $179,700 $962,500 $927,500 Hurstbridge $37,500 $192,600 $960,000 $922,500 Briar Hill $46,400 $238,300 $968,000 $921,600 Footscray $23,000 $118,100 $943,000 $920,000 Emerald $35,350 $181,500 $950,000 $914,650 Chelsea Heights $35,950 $184,600 $945,000 $909,050 Yarra Glen $30,000 $154,100 $935,000 $905,000 Altona North $37,650 $193,300 $942,500 $904,850 Montrose $37,000 $190,000 $941,500 $904,500 Taylors Lakes $46,950 $241,100 $950,000 $903,050 Watsonia $37,600 $193,100 $940,000 $902,400 Airport West $36,000 $184,900 $937,500 $901,500 Clayton South $38,470 $197,500 $937,000 $898,530 West Footscray $26,000 $133,500 $920,000 $894,000 Knoxfield $37,250 $191,300 $928,500 $891,250 Keysborough $38,500 $197,700 $908,000 $869,500 Bayswater North $37,300 $191,500 $894,800 $857,500 Reservoir $34,000 $174,600 $890,000 $856,000 Croydon South $36,500 $187,400 $890,000 $853,500 Croydon $36,000 $184,900 $888,000 $852,000 Carrum $29,750 $152,800 $880,500 $850,750 Heidelberg Heights $35,500 $182,300 $880,000 $844,500 Watsonia North $42,600 $218,800 $886,600 $844,000 The Basin $33,000 $169,500 $871,000 $838,000 Ferntree Gully $36,350 $186,700 $873,000 $836,650 Tootgarook $29,000 $148,900 $865,000 $836,000 Berwick $41,625 $213,700 $875,000 $833,375 Tecoma $31,000 $159,200 $860,000 $829,000 Bayswater $37,200 $191,000 $865,000 $827,800 Upper Ferntree Gully $30,750 $157,900 $856,500 $825,750 Monbulk $35,000 $179,700 $860,200 $825,200 Upwey $33,500 $172,000 $857,600 $824,100 Somerville $34,000 $174,600 $855,000 $821,000 Tyabb $34,950 $179,500 $850,000 $815,050 Boronia $35,500 $182,300 $850,000 $814,500 Hadfield $35,000 $179,700 $848,800 $813,800 Langwarrin $39,000 $200,300 $850,000 $811,000 Bundoora $42,000 $215,700 $852,000 $810,000 Springvale $33,000 $169,500 $842,000 $809,000 Lilydale $33,225 $170,600 $840,000 $806,775 Mount Evelyn $31,000 $159,200 $835,000 $804,000 Belgrave $31,000 $159,200 $835,000 $804,000 Chirnside Park $45,000 $231,100 $842,500 $797,500 Maidstone $27,500 $141,200 $820,000 $792,500 Seaford $33,000 $169,500 $825,000 $792,000 Springvale South $38,000 $195,100 $820,000 $782,000 Keilor Park $45,000 $231,100 $824,200 $779,200 Glenroy $34,000 $174,600 $811,000 $777,000 Mooroolbark $36,475 $187,300 $812,500 $776,025 Endeavour Hills $38,950 $200,000 $810,000 $771,050 Kingsbury $36,125 $185,500 $800,000 $763,875 Healesville $29,750 $152,800 $792,500 $762,750 Kilsyth $36,500 $187,400 $795,000 $758,500 Heidelberg West $28,875 $148,300 $780,000 $751,125 Sunshine $27,000 $138,600 $773,500 $746,500 Mill Park $43,975 $225,800 $790,000 $746,025 Noble Park North $37,000 $190,000 $775,000 $738,000 Noble Park $35,000 $179,700 $770,000 $735,000 Rosebud $27,500 $141,200 $760,000 $732,500 Fawkner $35,000 $179,700 $766,500 $731,500 Keilor Downs $41,350 $212,300 $765,000 $723,650 Cockatoo $27,275 $140,100 $750,000 $722,725 Dandenong North $38,000 $195,100 $755,000 $717,000 Albion $25,500 $130,900 $737,500 $712,000 Braybrook $24,475 $125,700 $735,000 $710,525 Narre Warren $34,995 $179,700 $745,000 $710,005 Sunshine North $30,000 $154,100 $735,000 $705,000 Tullamarine $43,675 $224,300 $745,000 $701,325 Frankston $36,000 $184,900 $735,000 $699,000 Baxter $32,000 $164,300 $730,000 $698,000 Hallam $37,000 $190,000 $730,000 $693,000 Gladstone Park $42,000 $215,700 $734,000 $692,000 Altona Meadows $39,000 $200,300 $730,000 $691,000 Capel Sound $29,200 $149,900 $720,000 $690,800 Yarra Junction $25,750 $132,200 $715,000 $689,250 Launching Place $34,000 $174,600 $722,000 $688,000 Thomastown $39,000 $200,300 $720,000 $681,000 Crib Point $25,500 $130,900 $705,000 $679,500 Carrum Downs $34,950 $179,500 $711,000 $676,050 Dandenong $34,440 $176,900 $710,000 $675,560 Whittlesea $39,975 $205,300 $712,500 $672,525 Lalor $37,500 $192,600 $701,000 $663,500 Woori Yallock $27,000 $138,600 $690,000 $663,000 Kealba $39,000 $200,300 $700,000 $661,000 Warburton $22,500 $115,500 $667,500 $645,000 Sunshine West $36,000 $184,900 $680,000 $644,000 Ardeer $30,500 $156,600 $672,500 $642,000 Hastings $33,950 $174,300 $670,000 $636,050 Sunbury $37,000 $190,000 $670,000 $633,000 Deer Park $35,000 $179,700 $667,000 $632,000 Hampton Park $34,950 $179,500 $665,000 $630,050 Cranbourne $33,250 $170,700 $660,000 $626,750 Epping $40,248 $206,700 $665,000 $624,752 St Albans $35,000 $179,700 $655,000 $620,000 Westmeadows $44,250 $227,200 $660,000 $615,750 Diggers Rest $34,500 $177,200 $650,000 $615,500 Pakenham $36,900 $189,500 $650,500 $613,600 Craigieburn $37,500 $192,600 $650,000 $612,500 Hoppers Crossing $38,000 $195,100 $621,000 $583,000 Campbellfield $38,000 $195,100 $621,000 $583,000 Frankston North $24,625 $126,500 $605,000 $580,375 Kings Park $36,500 $187,400 $615,000 $578,500 Albanvale $35,000 $179,700 $612,000 $577,000 Millgrove $23,350 $119,900 $597,500 $574,150 Werribee $35,973 $184,700 $610,000 $574,027 Doveton $27,250 $139,900 $600,000 $572,750 Jacana $30,000 $154,100 $602,000 $572,000 Bacchus Marsh $39,400 $202,300 $610,000 $570,600 Broadmeadows $28,000 $143,800 $592,500 $564,500 Laverton $30,000 $154,100 $590,000 $560,000 Wyndham Vale $33,775 $173,400 $575,500 $541,725 Coolaroo $29,000 $148,900 $560,000 $531,000 Dallas $31,000 $159,200 $555,000 $524,000 Melton West $35,050 $180,000 $540,000 $504,950 Melton South $30,500 $156,600 $519,200 $488,700 Melton $30,000 $154,100 $475,000 $445,000 Source: PropTrack Top Melbourne suburbs where unit prices soared since 1980 Suburb 1980's Average Price 1980 Price (Indexed to 2025) 2025 Projected Price Difference (2025 – 1980) Brighton $61,000 $313,200 $1.31m $1.25m Beaumaris $49,600 $254,700 $1.28m $1.23m Black Rock $47,000 $241,300 $1.27m $1.23m Brighton East $49,750 $255,500 $1.19m $1.14m Mount Waverley $40,000 $205,400 $1.09m $1.05m Canterbury $44,250 $227,200 $1.08m $1.04m Toorak $60,250 $309,400 $990,000 $929,750 Glen Waverley $47,950 $246,200 $946,500 $898,550 Hampton $41,000 $210,500 $927,500 $886,500 Vermont $45,125 $231,700 $928,900 $883,775 Caulfield South $34,000 $174,600 $900,000 $866,000 Camberwell $47,000 $241,300 $895,500 $848,500 Clifton Hill $24,300 $124,800 $870,000 $845,700 Surrey Hills $42,075 $216,100 $870,000 $827,925 Mitcham $37,625 $193,200 $863,000 $825,375 Kew $54,225 $278,400 $879,000 $824,775 Bentleigh East $30,000 $154,100 $850,000 $820,000 Box Hill North $40,500 $208,000 $858,000 $817,500 Balwyn $50,000 $256,800 $851,800 $801,800 Williamstown $38,500 $197,700 $840,000 $801,500 Aspendale $30,000 $154,100 $822,200 $792,200 Nunawading $34,250 $175,900 $825,000 $790,750 Glen Iris $37,625 $193,200 $820,000 $782,375 Parkdale $33,750 $173,300 $802,500 $768,750 Mont Albert $44,500 $228,500 $800,000 $755,500 Mornington $34,500 $177,200 $757,000 $722,500 Fairfield $18,500 $95,000 $735,000 $716,500 Clayton $33,500 $172,000 $750,000 $716,500 Hughesdale $36,000 $184,900 $746,500 $710,500 Bonbeach $28,375 $145,700 $730,800 $702,425 Murrumbeena $27,000 $138,600 $722,500 $695,500 Ringwood East $36,500 $187,400 $730,000 $693,500 Greensborough $38,000 $195,100 $728,000 $690,000 Ivanhoe $44,000 $225,900 $730,000 $686,000 Mordialloc $29,000 $148,900 $713,800 $684,800 Elsternwick $37,250 $191,300 $722,000 $684,750 Altona $36,000 $184,900 $720,000 $684,000 Bentleigh $34,000 $174,600 $711,000 $677,000 Chelsea $29,875 $153,400 $705,000 $675,125 Armadale $33,125 $170,100 $702,500 $669,375 Malvern $41,250 $211,800 $709,000 $667,750 Mentone $33,750 $173,300 $690,000 $656,250 Cheltenham $33,358 $171,300 $683,000 $649,642 Bayswater $31,500 $161,800 $680,000 $648,500 Croydon $32,000 $164,300 $680,000 $648,000 Sandringham $41,250 $211,800 $687,500 $646,250 Ferntree Gully $32,300 $165,900 $665,500 $633,200 Elwood $28,500 $146,300 $660,000 $631,500 Northcote $21,000 $107,800 $650,000 $629,000 Boronia $33,000 $169,500 $660,500 $627,500 Glen Huntly $40,000 $205,400 $666,000 $626,000 Thornbury $21,000 $107,800 $645,000 $624,000 Heidelberg $41,500 $213,100 $665,000 $623,500 Carnegie $34,250 $175,900 $650,000 $615,750 Fitzroy North $30,000 $154,100 $645,000 $615,000 Seaford $33,000 $169,500 $645,000 $612,000 Blackburn $40,000 $205,400 $652,000 $612,000 Pascoe Vale $34,500 $177,200 $645,000 $610,500 Caulfield North $36,500 $187,400 $641,000 $604,500 Preston $31,500 $161,800 $631,200 $599,700 Bayswater North $30,500 $156,600 $630,000 $599,500 Highett $34,500 $177,200 $631,800 $597,300 Ormond $24,000 $123,200 $620,000 $596,000 Capel Sound $32,625 $167,500 $627,500 $594,875 Reservoir $32,000 $164,300 $625,000 $593,000 Springvale $30,500 $156,600 $622,000 $591,500 Springvale South $33,000 $169,500 $621,500 $588,500 St Kilda East $30,000 $154,100 $610,000 $580,000 Ringwood $35,700 $183,300 $615,000 $579,300 West Footscray $30,000 $154,100 $609,000 $579,000 Doncaster $43,750 $224,700 $608,000 $564,250 Hawthorn $38,159 $195,900 $599,500 $561,341 Brunswick $27,250 $139,900 $588,000 $560,750 Balaclava $27,000 $138,600 $585,800 $558,800 Richmond $19,950 $102,400 $575,000 $555,050 Malvern East $36,500 $187,400 $588,500 $552,000 Box Hill $36,250 $186,100 $586,000 $549,750 Hawthorn East $30,250 $155,300 $577,500 $547,250 Glenroy $33,000 $169,500 $580,000 $547,000 Oakleigh $37,000 $190,000 $583,500 $546,500 Coburg $28,000 $143,800 $572,000 $544,000 Essendon $37,000 $190,000 $580,000 $543,000 Moonee Ponds $35,750 $183,600 $572,500 $536,750 St Kilda West $25,750 $132,200 $550,000 $524,250 Noble Park $31,500 $161,800 $555,000 $523,500 Frankston $33,000 $169,500 $550,000 $517,000 Tullamarine $41,000 $210,500 $557,500 $516,500 Ascot Vale $25,000 $128,400 $539,000 $514,000 Footscray $22,750 $116,800 $530,000 $507,250 Windsor $30,000 $154,100 $535,500 $505,500 Brunswick West $27,000 $138,600 $530,000 $503,000 South Yarra $38,000 $195,100 $540,000 $502,000 Albion $19,750 $101,400 $520,000 $500,250 Burwood East $47,000 $241,300 $542,000 $495,000 St Kilda $24,125 $123,900 $505,000 $480,875 Maribyrnong $24,450 $125,600 $490,000 $465,550 Prahran $33,000 $169,500 $491,800 $458,800 Cranbourne $26,975 $138,500 $480,000 $453,025 Dandenong $29,000 $148,900 $472,500 $443,500 Parkville $63,500 $326,100 $500,000 $436,500 North Melbourne $32,500 $166,900 $465,000 $432,500 Melbourne $47,000 $241,300 $440,000 $393,000 Carlton $66,500 $341,500 $342,500 $276,000
Yahoo
26-05-2025
- Business
- Yahoo
How To Build Generational Wealth Without a Big Salary, According To Jaspreet Singh
Many people believe that buying a home is the best way to build generational wealth, especially if you have a limited income — but money expert Jaspreet Singh says that this isn't the case. Find Out: Read Next: 'When most people think of generational wealth, they're thinking, 'I own this home that's worth $600,000 with a $500,000 mortgage. I'm going to work to pay down my mortgage to 0, that way then I can pass down this house to my kids,'' Singh said in a recent YouTube video. 'But that's not what real generational wealth looks like.' Singh believes that real generational wealth provides income while you are living and then provides that income to future generations. Not only does a home not generate income, but it actually continues to cost money for whoever inherits it — even if you've paid off the mortgage. 'There's no mortgage payment, which is great, but you still have to pay property taxes, you still have to pay your property insurance, and you still have to pay for the upkeep,' Singh said. Even if your heirs sell the home, it isn't generating income. 'You could just sell the home and you can pocket this $1 million [and] put it into your bank account, but now the problem is this $1 million isn't paying you anything,' Singh said. 'It's just sitting there. And now if you live off of $100,000 a year, well, this money is going to be completely gone in 10 years.' Instead of buying a home, Singh said there are three other assets you should focus on buying to create true generational wealth. There are a few types of stock investments Singh recommends for building generational wealth, the first of which is domestic dividend-paying funds. These are typically low-risk investments that pay dividends just for being an investor. For those willing to take on more risk, Singh said to consider investing in a real estate investment trust (REIT). If you want to get 'even more sophisticated,' Singh said to look into international ETFs. 'There's higher risk, but also higher growth potential,' Singh said. The way to turn these investments into generational wealth is to invest consistently over time and to keep reinvesting your profits, Singh explained. 'The reason why so many people fail with this type of dividend investing is because they look at something that's paying out a 3 or 4% dividend yield and they say, 'Well, I'd have to invest millions of dollars to make a solid stream of income, so it doesn't really make sense for me to go out and invest in these dividends because I'm never going to actually have that type of money.' 'But that's not the way that you succeed with dividend investments,' Singh said. 'No. 1, you want to see asset appreciation, which is the growth in the value of your investments. No. 2, you want to see dividend appreciation, which means you want to be investing in a good company that's also increasing how much money they're paying you. And then you also want to be reinvesting the dividends that you get.' By consistently investing in these funds with every paycheck and reinvesting your profits, your wealth will grow over time. 'This is how you can win in this strategy, even if you don't make a ton of money, because now you're following what I call 'CPA' — you're being consistent, passive and you have an automatic investing strategy. … Even if you're starting with just $100 a month, you can still see those gains, but you have to stay consistent.' Learn More: Singh acknowledges that investing in real estate does take some upfront cash, so it might not be feasible for everyone. 'I do not recommend you get into real estate unless you have some actual cash to go out and invest,' he said. However, even if you don't have enough saved now, that's something you can work toward. 'The reality is, you get what you prioritize, and some people will prioritize investing in real estate and you're going to find a way to do it,' Singh said. Once you have enough cash saved up, Singh said to buy a rental property — not a home for you to live in. 'When I go out and invest in real estate, my goal is to get a 7% cash return on my money,' Singh said. 'That means for every $1,000 I invest, I want to see $70 of cash flow every year entering my bank account after expenses.' Singh said to focus on rental income rather than appreciation when choosing a property, because rental income is predictable while the change in the value of your property is not. 'The advantage of real estate investing is not just the cash flow — you also get the benefits of owning a hard asset,' he said. 'There's this real value that you can control.' In addition, owning property entitles you to valuable tax breaks. The third way to create generational wealth is to start a business. 'Now this one is the most difficult, the most risky, but also has the most potential upside,' Singh said. The way to build a successful business is to create a business that can run when you step away. 'If, hypothetically, your business makes $500,000 a year and after all expenses you have $250,000 of profit, well now you hypothetically could hire a new CEO [to replace you] at a $150,000 a year salary,' Singh said. 'That means the business is still making $100,000 in profits. This profit goes to the owner of the business, and if you are the owner of the business, well, now you can have a different CEO run the company, you can go move to the beach and still make this $100,000 a year.' Singh acknowledges that starting a business is not for everyone. 'It is hard building a business, but for some people, you will love it; for others, you're going to hate it,' he said. 'If you hate it, don't worry about this — focus on the stocks and real estate.' More From GOBankingRates 8 Common Mistakes Retirees Make With Their Social Security Checks Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck This article originally appeared on How To Build Generational Wealth Without a Big Salary, According To Jaspreet Singh Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Khaleej Times
24-05-2025
- General
- Khaleej Times
'No more sleepless nights': Winner of Dh100-million Emirates Draw jackpot pens heartfelt letter
Soon after winning Dh100 million, the largest individual prize in UAE Draw history, Chennai-based Sriram Rajagopalan wrote a letter. But it wasn't about wealth, investments, or luxury plans. It was about gratitude, humility, and the joy of a mother's smile. 'The moment I got your call, my world stopped,' he wrote to Emirates Draw. 'My hands shook. My heart beat so fast, I thought time itself had frozen.' The retired engineer, who returned to India in 2023 after decades of working in Saudi Arabia, had randomly tapped numbers on his phone using a stylus with his eyes closed. When those numbers were drawn on March 16 in the MEGA7 game, he became an overnight multi-millionaire. In his deeply emotional letter, Sriram said what the win truly meant to him: 'My mother is 88 years old, and I have never seen her like this before. Her face, once tired from life's struggles, now glows with happiness.' Raised in a modest, middle-class household, Sriram spent years working abroad to support his family. The sacrifices were many, the dreams often postponed, until one life-changing moment. In his letter, he added, 'No more sleepless nights filled with worry. No more sacrificing dreams to survive.' He calls the jackpot a 'chance to build generational wealth.' He plans to donate a portion of his winnings to charity. 'You haven't just changed my life, you have given me a new one,' he concluded in the letter, signing off as 'Dear Millionaire'; the name he was called during the unforgettable phone call. For Sriram, it was never about becoming rich. It was about seeing his mother smile, finally and freely, a moment he calls 'worth more than all the money in the world.' Here's a video of Sriram's letter to Emirates Draw: Owned and operated by Tycheros, Emirates Draw paused its UAE operations at the end of 2023 following regulatory updates from the UAE's Commercial Gaming Regulatory Authority (CGRA). The company subsequently shifted its focus to international markets. Like Sriram, other lucky participants in previous draws have reflected on what the mega win means to them and what they plan to do with the big bounty. From driver to millionaire Pakistani expat Junaid Rana's life transformed overnight in October 2021 when he won Dh50 million in the Mahzooz draw. A former driver earning Dh6,000 a month, Junaid used the winnings to reunite his family in Dubai, invest in businesses back home, and fulfill lifelong dreams, from buying his dream car to securing a comfortable future for his ailing brother. Free ticket, Dh25 million windfall Meanwhile, Sharjah-based Indian resident Aravind Appukuttan, who works as a salesperson, struck luck in December 2023 by winning Dh25 million in the Big Ticket draw through a free ticket. Sharing the prize with 20 friends, Aravind called it a dream come true and urged others to keep their hopes alive. 'I'll pay off loans and save the rest,' he said earlier.
