The price of everything and how to cope with it

[GhiaEB]

I must ask, why a 4x2? 3 bedrooms and 1 bathroom not enough for 2 adults?

Even with an upcoming family, that allows for 2 kids, each with a room to theirselves. Or must you have everything you will ever need + more? Do you want the biggest house on the smallest block?

I too am looking to buy in the next year. But I can assure you it will be a 3x1 on the largest block I can get. Houses decrease in value, while land increases.

It's one thing that really gets to me. People complain about the cost of housing, but then build/buy something that is really unnecessary. How may of us grew up in the 70s-80s sharing a room with their sibling? Why do you need a cinema in your home? A lounge room not good enough? Who does study, in their study? It goes on and on.

[Ben73]

Originally Posted by Ugg

Renting is far cheaper at the moment than buying a property.

So...rent close to work, minimise travel costs and save save save.

Renting is cheaper in the short term. But in 10 years I will own most of my house. While a renter is at risk of being kicked out and looking for something else to live in. I believe you should buy something as soon as you can afford it.

[BPXR6T]

I retired about 5 years ago and moved to the country. I paid cash for my place in the country and lived a mostly self sufficient lifestyle. $40 a week at woolies, solar power, tank water. All good. I lived cheap and comfortable like that for a few years. I moved back to the city about twelve months ago and was astounded by how much the cost of living had increased. I was looking at a nice house but the fat mortgage meant going back to work. So as of a couple of months ago I bought another country place. 5 acres, 3x2 car garages, big 3 bedroom house, etc.. $160,000. Next to no bills and a better lifestyle.

[RepSpec]

Originally Posted by GhiaEB

I must ask, why a 4x2? 3 bedrooms and 1 bathroom not enough for 2 adults?
Even with an upcoming family, that allows for 2 kids, each with a room to theirselves. Or must you have everything you will ever need + more? Do you want the biggest house on the smallest block?

got the 4 bed 2 bath because it was cheaper than then 3 x 1 in the area. big backyard, 8 years old... i would have been silly to pass it up. and i dont plan on moving anytime soon, so it will do me and the missus for a long time

thanks to all the replies, seems head down bum up is the only real way of getting a head (aside from Tatts)

[usernametaken]

I live on a 4 year old house on a 1/3 acre in a country town 40 mins from a capital city.

All my mates with reckon I was mad buying in 'the bush' and driving all that 'distance' into work.

It takes me less time to get to work than most of them (easy highway driving) and my deposit payed off half my mortage straight up.

I bought a 2006 BFMKII E-Gas which costs me $40 a set (firefighter) to off set the commute of 80kms one way.

I have a mortgage of $1000 a month for a house in a beautiful part of the State (which is hardly locked) and a car that costs less in fuel than most 4cyl and a commuting time that is less than others.

The extra money goes straight in the mortgage ($1200 a month) and we still have heaps left over (just spent 7k on solar, wifey is getting newish Dualis Ti and I'll be getting an xr6 s/s ecolpi.


And my collegues call me crazy...

My point is, country life doesn't mean hill billy life.

check it out - you'll be suprised.

[usernametaken]

ha, seems my post was a couple of minutes to late...

disregard.

;)

[Rodp]

Copious amounts of overtime.. :(

[2011G6E]

I don't know how they do the computations on those calculators on bank websites...we added up my wage and the wifes wage, and came up with a figure we could borrow of $860,000!
The trick is we'd need a deposit of 5% minimum which is $43,000. Then teh payments would be staggering.

We're buying a house worth around the $310,000 range...no use being one of those people who, when interest rates go up by a quarter of a percent, start panicking and wondering where they're going to get the money to cover it.

We set the requirements early...3 bedroom (even though it's just me an the missus, our kids and grandkids come to visit regularly and it's nice to have the room), not too big a yard as we'll only be living there on some weekends off until I retire, high set with garage/s under the house as it gives room underneath for a sewing room and area for the train set I'm gathering bits for (erm...for the grandkids...of course...) and a shed...2 bay minimum, a 6x9 would be preferable.

[Charliewool]

One little trick to lessen the bill load is to set your online banking to weekly BPay an amount to the 3 main killers (Elect, Gas, Water)
Eg: On your Gas bill, it'll tell you your daily cost is say $3.60. Set up BPay to transfer $20 to Gas provider each Friday, Maybe $30 to Elect, etc, etc.
Really takes the sting out of receiving a $600 Electricity or $300 gas bill.

[Yellow_Festiva]

Heaps of great advice has been given already....

1) Scan EVERY leaflet / dogalogue / commercial and stock up on stuff when it's cheap. Store it out of sight and just use it as you need. You would be surprised how much pre-packaged food has a shelf life of 1 yr or more. If you have a 'No junk mail' sign, remove it now. I love the stuff lol.

2) Look into reducing power / water consumption. Do you wash with hot water / use a dryer?? DON'T!! Money down the drain. Wash cold / cold, make sure loads are full and dry in the sun. Seal up your house as best you can in winter to reduce the power loss when heating.

3) Fix all leaking taps, toilets, etc. Buy 'energy saving' shower heads, lights etc. Turn off things that are on 'stand by' during the day. Make sure your fridge seal is intact, and adjust fridge temp according to the seasons. Toss your 30 year old beer fridge if you have one!

4) Buy generics. Often they are made by the known brands anyway. This goes for EVERYTHING you can think of, not just food. Often, they are half to 1/3rd the price but perform just as well as the top shelf items.

5) Cheap clothing doesn't need to come from cheap shops. Don't dismiss places like Myer during sale / change of season times. My wife has a wardrobe full of 'last years' fashion. Nothing over $30 a pop, reduced 50%, then put on the 70% off 'already reduced prices' rack... she loves those little red spots, and still looks smashing....

6) Review all continual expenses when contacts expire (Internet, insurance, phone, gym etc etc etc). A few dollars saved per fortnight / month across several expenses will eventually add up. Ask for 'pay by the month' if it is at no financial penality.

7) In terms of cars / houses etc. Hold on to what you have a little longer and take better care of it. Any car can give many years of service if looked after correctly.

8) Increase your income by working more! Look into working undesirable hours if it is something that suits your situation. More pay for same work is always a win.

9) Spend on days / times when you get the same good / service for less. Go to the movies on Tuesday, travel during off peak times etc.

10) ALWAYS have a backup plan. You need to have cash reserves of 6 months MINIMUM, best kept in your mortgage as redraw....

Cheers,

Jason

[Dr Jekkyl]

Sell the house ASAP to minimise your losses. Property is going nowhere fast, especially in Melbourne.

Invest the difference between rent and mortgage, or at least the major portion of it, into another investment vehicle such as investment bonds and watch it grow!

Ditch the car loan and buy a car outright - again, invest that money or at least a portion of it.

Finally, preserve the relationships you have and are going to form by having some spare cash to enjoy your spare time!!!

[302 XC]

I dont never understand how people can find it hard to manage loans/mortgages when they know full well what the payments were when the loan is givin ...
People forget the wee extras in home loans, like insurance, rates,maintenance , thats stuff many banks dont tell you
My first house way way back when was a cost of 100 K and the interest rate was 18 %,my loan was one full wage, out of two
So what was left had to buy and pay for everything else
We had sheets as curtains for over 8 years,we drove POS that done the job,i never borrowed for a car till 6 years after i got the house
People get so wrapped up in $$$ figures and massive monetary future profits in real estate
Live within your income and means, allow some coin for the un forseeable,dont buy stuff you dont need,youll be fine
Friends in brissie have a 300 K loan ,and pay $700 a week in payments, id find that , a car loan, the general cost of living straining even the average wage for a couple