Havent bought a house yet? has the boat sailed away?

[XB GS 351 Coupe]

Originally Posted by Big Damo

Is it we want too much or has house prices genuinely increased vs our wages?

As long as you compare apples with apples I think things are pretty much on par, it has always been hard to get into the housing market, my wife's parents payed 29K for their house on a ¼ acre block back in the day, they had to move out of the CBD and it was also very hard and both parents worked.

The house was a tiny three bedroom, with bedrooms the size of my current walk in wardrobe and a lounge the size of my current bedroom.

There was no garage and no air conditioning.

Both parents had to work to meet the repayments.

These days people want four bedrooms, walk in robes, theatre rooms, climate control, big screen TV's in every room, surround sound, three computers, I pads, latest mobile phones, three car garage, internet, wifi, pay TV, brand new luxury cars, over seas holidays etc etc when first starting out and then complain about the coast.

May be buy a modest 3 bedder and drive a 20 year old car like I did back in the day and they would not have any problems making repayments.

[Uncle Niceguy]

Man threads like this make me want to get out of the city and have a fresh start in the middle of nowhere.

[XB GS 351 Coupe]

Originally Posted by Uncle Niceguy

Man threads like this make me want to get out of the city and have a fresh start in the middle of nowhere.

I did exactly that three years ago, sold up everything in Sydney, packed my cars up and moved into the middle of no where, best decision ever, in three years I have not regretted it once and would recommend to anyone.

So much better for the kids as well, they have the best life out in the bush, and miss out on nothing, unlike city kids who seem to grow up indoors playing video games, instead of being out and about every day.

[adumb]

I live in Melton (It's nothing like its reputation) and you cannot beat it for affordability, even Bacchus Marsh is similar. I grew up here and built my first house here. Sure there are ********* but you can get them anywhere.

Just under an hour from the city, decent train service, Freeway right into the CBD and $400K will get you something very nice! Hell $300k will get you something nice!

[xisled]

Currently I am looking to buy a house. I have no problems in paying back the loan; my income is more than enough. The biggest problem I am having is getting the loan in the first place due to the deposit. I roughly need to save minimum $30000 for the deposit.

[MercurySilver]

So house prices have gone thru the roof nationally?

Rubbish
Only certain. Areas would have.
Plenty of good houses on decent land about.

If people want to pay 400 grand for a block that's 300to 400sqm well then you've got more money than sense

[Franco Cozzo]

Originally Posted by MercurySilver

So house prices have gone thru the roof nationally?

Rubbish
Only certain. Areas would have.
Plenty of good houses on decent land about.

If people want to pay 400 grand for a block that's 300to 400sqm well then you've got more money than sense

Capital cities and their surrounding suburbs on all sides are the big ones with the price rises, you gotta go regional for the deals.

The government should give incentives to business to have their offices based in the regions IMO, everyone wants their office to be based in CBD where parking and driving is a pain in the ***.

You've got decent train services out to Geelong, Bendigo, Ballarat for example, maybe Government should start offering incentives for people to base their offices in those regions.

Hume City Council is offering deals and discounts to business to open in its region (even though its part of Melbourne but its the right step) and more incentives to hire locals as well.

[Uncle Niceguy]

Originally Posted by XB GS 351 Coupe

I did exactly that three years ago, sold up everything in Sydney, packed my cars up and moved into the middle of no where, best decision ever, in three years I have not regretted it once and would recommend to anyone.

So much better for the kids as well, they have the best life out in the bush, and miss out on nothing, unlike city kids who seem to grow up indoors playing video games, instead of being out and about every day.

This is something I am thinking very seriously about, but the difference between you and me is l don't have anything to sell no qualifications and just enough cash for bond and rent for a month plus living expenses. If I don't find a job in that period of time I'd be stuffed. And even then I don't have a car, so said town would have a train going through it or a bus.

[Road_Warrior]

Staying within your means and starting with a more modest place instead of a McMansion would be a good start. I bought my first house in 2008 and it was a 3brm duplex half with a single carport, no aircon, no ensuites or any of that, made some improvements to the place to add value to it and when we were ready to move onward and upward, the equity that was released when we sold the place we used as a deposit for our new, nicer and larger house.

Be prepared to make some sacrifices to your lifestyle so you can get your foot in the door of the housing market, be reasonable about what you can afford versus what you'd like, and you're half way there.

[HULK_I6T]

Originally Posted by xisled

Currently I am looking to buy a house. I have no problems in paying back the loan; my income is more than enough. The biggest problem I am having is getting the loan in the first place due to the deposit. I roughly need to save minimum $30000 for the deposit.

this is the mindset of many.

They say they can easily afford the payments but dont have the deposit? But the bank manager will say if you dont have the discipline to get together a deposit, how can you maintain the payments thereafter???

[HULK_I6T]

My advice is buy thinking ahead..

years ago I bought a house that was surplus to my needs, was difficult to buy...

it was an investment property, it was rare to have a house of this size available for rent. yes i charged more and it didnt go one week without being rented over many years.

I now live in it with a young family. If I bought a showbox to start with we would be looking to upsize now.. Ive saved on the transaction costs and hassle of moving.

buy a bit bigger than you think you need.

[Yellow_Festiva]

Originally Posted by Big Damo

Capital cities and their surrounding suburbs on all sides are the big ones with the price rises, you gotta go regional for the deals.

The government should give incentives to business to have their offices based in the regions IMO, everyone wants their office to be based in CBD where parking and driving is a pain in the ***.

Only problem is that once you give an incentive, it creates an artificial situation and people just love a deal.

Think first home buyers grant, roof insulation, government stimulus cheques etc. Great in theory, used and abused in reality.

The incentive is that rents and property is cheaper.

When I used to do my M5 cashback claim via mail I loved the fact I was sending the paperwork to Dubbo.

I have heard of people working in the CBD into the evening and the company pays for their cab home because they don't have parking and feel their staff are not safe on buses / trains at midnight... Tell me that doesn't cost a mint.

[XW-BAXR6T]

Selling a house without paying stamp duty fees & other taxes associated with selling can be a god send. after selling the house we had in stonnington we owned for around 40 years we bought our other house.

New house we got, we also didnt pay stamp duty or other associated taxes because i was on disability pension at the time so i was except & mum & dad are pensioners they too were except from paying as was our first time claiming tax free. We bought it together 3 of us & saved mega bucks propably into mid 30 grand with both houses from not paying taxes.

This is helpful when wanting upgrade house. But provided the house you sell was first purchased prior to 1983 i believe properties / houses bought before that year are stamp duty tax except.

And you maybe eligible for exception from paying stamp duty when buying a house if you're on centerlink payments. Worth asking

[Mont5.0]

Originally Posted by MercurySilver

So house prices have gone thru the roof nationally?

Rubbish
Only certain. Areas would have.
Plenty of good houses on decent land about.

If people want to pay 400 grand for a block that's 300to 400sqm well then you've got more money than sense

Or they may want to live in a particular area and that's the going rate. Not everyone wants to move further away from city,jobs etc.
Like the old saying goes "you get what you pay for"

[Franco Cozzo]

Originally Posted by Yellow_Festiva

Only problem is that once you give an incentive, it creates an artificial situation and people just love a deal.

Think first home buyers grant, roof insulation, government stimulus cheques etc. Great in theory, used and abused in reality.

The incentive is that rents and property is cheaper.

When I used to do my M5 cashback claim via mail I loved the fact I was sending the paperwork to Dubbo.

I have heard of people working in the CBD into the evening and the company pays for their cab home because they don't have parking and feel their staff are not safe on buses / trains at midnight... Tell me that doesn't cost a mint.

They don't take that into account though, you know how it is, everyone wants shiny CBD office in Sydney or Melbourne which they might get a shoebox for their money thats on the opposite end of public transport, they don't account the extra costs on staff like parking etc.

[FGX335]

We are currently building a house, and I have to say that prices have not really risen since we built last time in 2006. The costs to build do not seem to have increased, and where they have, it's because they now include things as standard that used to cost an arm and a leg.

Where the expense is would be land. Our new block cost $85K more than last time, and is 350m2 smaller, but we do have a flat block and the other was steep as buggery. Not a fair comparison, but in that regard, prices haven't gone stupid in the past decade.

Speaking purely from experience on the Coast, by the way.

[xisled]

Originally Posted by HULK_I6T

this is the mindset of many.

They say they can easily afford the payments but dont have the deposit? But the bank manager will say if you dont have the discipline to get together a deposit, how can you maintain the payments thereafter???

The reason I know that I can afford the repayments, the amount of rent I currently pay would be able cover a mortgage, been doing it for a few years.

$1800 a month rent, it gets you a basic house in a basic suburb, around 30 plus mins from the City.

I know there is cheaper places available, but looking at moving further out would cost me a whole lot more travel time to and from work, also the cost more to live out further. More living expenses.

[GT0132]

Originally Posted by XB GS 351 Coupe

I did exactly that three years ago, sold up everything in Sydney, packed my cars up and moved into the middle of no where, best decision ever, in three years I have not regretted it once and would recommend to anyone.

So much better for the kids as well, they have the best life out in the bush, and miss out on nothing, unlike city kids who seem to grow up indoors playing video games, instead of being out and about every day.

Mate, what do you do for work ?

[Polyal]

Thats the catch, if you can get work outside the city then all well and good.

The work needs to move out of our major cities.

[Franco Cozzo]

Originally Posted by GT0132

Mate, what do you do for work ?

Makes ice, I hear its all the rage out in the regions

Just joking

[XB GS 351 Coupe]

Originally Posted by xisled

Currently I am looking to buy a house. I have no problems in paying back the loan; my income is more than enough. The biggest problem I am having is getting the loan in the first place due to the deposit. I roughly need to save minimum $30000 for the deposit.

If you think you would have no problems servicing a loan, there should be no problems saving 30K in a year or two as that is what your repayments would be.

The way the bank see it if you can't save for a deposit then you cant really afford the loan or don't have the discipline to pay off a loan.

Originally Posted by HULK_I6T

this is the mindset of many.

They say they can easily afford the payments but dont have the deposit? But the bank manager will say if you dont have the discipline to get together a deposit, how can you maintain the payments thereafter???

Pretty much agree with this.

[Road_Warrior]

Originally Posted by Polyal

Thats the catch, if you can get work outside the city then all well and good.

The work needs to move out of our major cities.

Spot on, I'd move out of the city tomorrow if I could, but not much work for me in the bush.

[XB GS 351 Coupe]

Originally Posted by Uncle Niceguy

This is something I am thinking very seriously about, but the difference between you and me is l don't have anything to sell no qualifications and just enough cash for bond and rent for a month plus living expenses. If I don't find a job in that period of time I'd be stuffed. And even then I don't have a car, so said town would have a train going through it or a bus.

Make a plan and stick to it, get yourself a job and save some $$ and buy a reliable easy to work on car, then save a bit more and make the move, a lot of country jobs do not need any qualifications, farmers are looking for farm hands all the time and have trouble finding reliable workers. Most farm jobs also come with a house as part of the deal and if you are good and learn fast and prove yourself reliable you will soon ear more.

Wife got a job working in a Cotton Gin, no experience ever, starting wage for inexperienced worker was over $1500 in the hand per week, for unskilled labour, more experienced staff and supervisors money was well above that and included a house to live in. (seasonal work only)

She now works in the local school, earning good money.

Originally Posted by GT0132

Mate, what do you do for work ?

I do what ever it takes to earn a $$$, have done more jobs than most people would be willing to attempt, moving out was a stepping stone to a better life and our own acreage. Working on a 10 year plan and about to start year 9 of the plan, in another 12 months we will be where we want to be, on our own acreage, with a nice house and large shed and minimal debt.

People need to get out of the mind set of waiting for things to happen and need to make them happen. Everyone is different, I would not live in a Capital city if someone offered me double my wage and a free house in the CBD, could not do it, I no longer go to the cities as it depresses me, and I genuinely feel sorry for people and especially kids growing up there, was there too long and wasted too much of my life sitting in bumper to bumper in traffic for hours every day.

Originally Posted by Big Damo

Makes ice, I hear its all the rage out in the regions

Just joking

I wish, but not smart enough for that, I sucked at chemistry

[XB GS 351 Coupe]

Originally Posted by Road_Warrior

Spot on, I'd move out of the city tomorrow if I could, but not much work for me in the bush.

There is heaps of work for everyone, why would there be no work for you??

The only people that have no work are people to lazy to work.

[FGX335]

Originally Posted by Big Damo

Makes ice, I hear its all the rage out in the regions

Just joking

I must be too naive, I honestly thought he was working in an ice works!

[Mr Brooksy]

Not sure about the current market, but we bought at the peak of the GFC when GovCo was doing everything humanly possible to stimulate the market. 557sm block just south of Newcastle (to the locals it was an eternity away!) for $220,000 with a 3 bedroom, 2 sunroom, huge lounge, dining and kitchen with 2 sunrooms and a freestanding double garage. Only needed to find 3% deposit as the first home owners grant was doubled, and the greedy lenders required less of an applicant than they do now.

And we have quite a low income! And we are now living overseas with renters in the house.

Financially the bank said we couldn't make it work, until they saw that we buy all our cars with savings, we were putting away at least $500-700 per fortnight in savings with no loans and (back when we were applying) paying rent as well.

From our perspective, you don't need a huge income, you just need to be smart with your money. Sure the market has changed, but as has been said, maybe you need to look further afield than your favorite suburb.

When we move back to Aus in a few years, we are contemplating moving further from cities so my little boy can have the opportunity to experience far more than he can in a city. And he can really see what it means to be part of a community, not just live in some lego suburb.

[GasoLane]

Originally Posted by XB GS 351 Coupe

There is heaps of work for everyone, why would there be no work for you??

The only people that have no work are people to lazy to work.

Not nessesaraly, I know a few people who would love to move here from Syd, but as they are in IT there is nothing here in their field.

What do you do.

[xisled]

Originally Posted by XB GS 351 Coupe

If you think you would have no problems servicing a loan, there should be no problems saving 30K in a year or two as that is what your repayments would be.

The way the bank see it if you can't save for a deposit then you cant really afford the loan or don't have the discipline to pay off a loan.



Pretty much agree with this.

It is true I will have a deposit within the next 6 to 12 months, but due to saving and my continue to save and for a deposit, I have paid my landlord around $36000 plus, in the last couple of years. Just because I don't have a deposit.

Basically I have been working with a broker to get a home loan, She has been guiding me on what I need to do. She has said you can get around everything apart from the deposit.

[HULK_I6T]

Originally Posted by xisled

The reason I know that I can afford the repayments, the amount of rent I currently pay would be able cover a mortgage, been doing it for a few years.

$1800 a month rent, it gets you a basic house in a basic suburb, around 30 plus mins from the City.

I know there is cheaper places available, but looking at moving further out would cost me a whole lot more travel time to and from work, also the cost more to live out further. More living expenses.

With 100% loans it means the interest is more not to mention mortgage insurance.. Take your average $500,000 house (likely average in a rural area) @100% loan, the interest is closer to $2500 interest per month even at very very low interest rates.

Guess what, the bank also wants you to eventually pay off some principle as well.. that will turn it into $3500+ per month. If interest rates shift upward 0.25% it will increase repayments $150 per month, will tip most people out if the $2500interest hasnt already.

[GT0132]

Originally Posted by xisled

It is true I will have a deposit within the next 6 to 12 months, but due to saving and my continue to save and for a deposit, I have paid my landlord around $36000 plus, in the last couple of years. Just because I don't have a deposit.

Basically I have been working with a broker to get a home loan, She has been guiding me on what I need to do. She has said you can get around everything apart from the deposit.

By the time you've saved $30k over 12 months the property you're saving for may have gone up by $40k. Better to borrow as much as you can now in my view.

I think if you're main objective in life is to own a property and the cost of one in any of the cities is out of reach then, provided you can get a job, living in the country is probably the only solution.

Yes, people say houses are cheaper there and you can live on less income, but the cost of rent and/or servicing a mortgage is not the only expense in life, so you still need income to pay bills, eat, buy petrol etc and to do that you most probably need a job.

Once you have your country property you then gotta be happy living there. Some like it some don't. While I find the busyness of Sydney a pain in the butt at times, the country for me is a bit too far the other way. Plus the lack of jobs in certain fields of employment may make living there out of the question.

If I couldn't afford to buy in the city I'd probably rent all my life a city dweller and perhaps buy an investment property in the country as an investment. That's exactly what I did in my early 20's not being able to afford a joint in Sydney I bought an investment property in a small coastal town.