A young property tycoon has hit out at Generation Y claiming they need to stop travelling and spending money on overpriced food if they want to save for their first home.

Tim Gurner, 35, is worth nearly half a billion dollars since buying his first investment property at the age of 19.

The Melbourne millionaire believes it's time his generation change their spending and lifestyle habits.

"When I was trying to buy my first home, I wasn't buying smashed avocado for $19 and four coffees at $4 each," he told Channel Nine's 60 Minutes program.

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"We're at a point now where the expectations of younger people are very, very high. They want to eat out every day, they want travel to Europe every year.

"This generation is watching the Kardashians and thinking that's normal - thinking owning a Bentley is normal."

The property tycoon said the next generation need to lower their expectations and realise they won't be buying up luxury homes anytime soon.

"The market has changed. You can go to Perth, you can go to Darwin. But you have to start to get realistic about your expectations.

"You might have to buy an investment property first. You might have to share with mum and dad - you might have to buy with a friend.

"But you've got to get your foot in the door and you've got to slowly get up the ladder."

"You've got to get your foot in the door and you've got to slowly get up the ladder," said Gurner.

Gurner's comments have been met with a backlash on social media will many criticising how he started out in the property - with a loan from his grandfather.

One social media comment read: "Maybe the new home buyers would stand more of a chance if they were given 34K by their grandad... that's a fair few smashed avos.'

Another added: 'Nice if you can get it,' while one commented: 'Much like Trump's dad gave him a "small loan of $1Mil.'

"We're at a point now where the expectations of younger people are very, very high," said Gurner. Photo / Instagram

Gurner began his property empire when he purchased a gym in Melbourne in 2001 after receiving a loan from his grandfather.

He ran the gym for 12 months before selling it to competitors and moving into the world of property developing.

He now has billions of dollars worth of projects across Australia and appeared on the BRW Young Rich List in 2015 where he was worth $430 million.