Multi-millionaire property developer claims Aussies are misspending during 'cost-of-spending' crisis
A multi-millionaire with a portfolio of 15 properties has claimed Australians are misspending their income during a “cost-of-spending crisis”.
A property developer owning 15 properties valued at a combined $20 million has claimed Australians are not in a cost-of-living crisis, but rather a spending crisis.
Managing partner at Praedium Partners, Jeremy Iannuzzelli, recently spoke on fellow property investor Jack Henderson's podcast where he claimed Aussies can not crack the property market due to trips to the café and a continual habit of spending cash.
The 35-year-old said he “truly believes” fellow Australians are not in a cost-of-living crisis, rather people have not reacted well to the economy.
“There’s still people out in cafes and there’s still people spending money,” Mr Iannuzzelli said.
“I don’t truly believe we have a cost-of-living crisis. I believe in my heart we have a cost-of-spending crisis.
“I think people haven’t reacted and changed their spending habits with the economy we're in which is higher interest rates.”
Mr Iannuzzelli claimed most wages in professions have “doubled” over the past ten years after seeing a lot of people’s incomes.
“I get to see a lot of people's incomes and I can definitely tell you incomes for most professions have doubled in the last ten years,” he said.
“Definitely people (are) working a lesser amount of days, I've definitely seen that.
“Tradies, all the way to professionals and service industry all the way to retail workers, there's been an increase in income, no doubt about it.
“In that four years during Covid it did pop quite a bit. So yes, property prices have increased but there's been a genuine material change in the increase of wages.”
Many viewers left their thoughts and did not see eye-to-eye with Mr Iannuzzelli.
“The benchmark now is $45 to $60 on a wage. Let's be real here. Love your stuff but this is wrong,” one said.
Another added: “Most professions have doubled. I work in HR and I can assure that incomes have not doubled in 10 years."
A third said: “I’m calling BS on wages doubling in 10 years. I’d believe the data trends on wages over these two."
According to the Australian Bureau of Statistics, private sector wages rose 3.3 per cent over the 12 months to December 2024, while the public sector annual rise of 2.8 per cent was the lowest since December quarter 2022.
National house price growth outpaced wage growth by 1.9 per cent over the same period in 2024, according to KPMG.
The insolvency firm's latest six monthly property report on Australia’s capital cities finds house prices across the country are expected to rise by 3.3 per cent over the next 12 months, with a stronger 6 per cent forecasted for 2026.
Mr Iannuzzelli explained on a podcast in January how he built his property empire.
The 35-year-old said he began investing in property in his early twenties and when he turned 28, he had built his portfolio to 15 properties.