View Full Version : Price of housing...beyond a joke??!
LittleBoysRock
13-03-2006, 14:43
I think that the price of housing is beyond a joke currently!
DH earns a good wage and we dont have an extravagant lifestyle but we cant afford to buy a home of our own. I mean we have a 2002 model car, pay for private health etc but dont do anything really outrageous!
Keeping in mind I live in WA, the average house goes for $250,000. In my area (which is pretty well middle class) this is a 3x1 shoe box. I mean for a first house I dont expect miracles but I would like a somewhat decent place to fix up and make a home for my family. :rolleyes:
DH and I need to save $30,000 in order to buy a home, even then we will have a massive mortgage. It is just so depressing. :banghead:
What also worries me is that some people I know will never be able to afford a home of their own (without winning lotto). :eek:
I thought Australia had an affordable lifestyle but doesnt look like it to me. Anybody else feeling this way??
Try living in Melbourne! You can't find anything decent under $350,000!
Dont think i'll ever be able to get out of the rental pit :crying:
unless we can save for a deposit, and repay a loan :confused: im not quite sure how it all works? i guess you have to have a good credit rating.. and be employed:confused: I would love a place to call "our own":)
I know you don't want to hear this, but that amount is quite an "unextravagant" mortgage by today's standards.
I think a good thing to do is not buy your dream house, but a house that is suitable, once you have some equity in that buy an investment property (or two or three), then when a couple of the properties come to fruition sell them and then buy something close to your dream house.
It might take you 10 -15 years to get close to what you want, but if you don't get into the property market now it will only be harder later on down the track when the average house price is $280 or $300 or more.
Does this make sense everyone??
Hi
The price of housing is terrible. DH is on a good wage and I am working partime but we also need to save at least$30000 before we can consider anything although DH has gone into panic mode :eek: and decided that we need to buy soon. I say with what? House prices in WA are just getting higher and higher and the average for a reasonable place is about $300000 which is hard when comes to getting morgage. Dunno am happy to rent and then buy a smaller place just to get on the ladder, do it up and move it on to another place, guessing that eventually we might be able have what we wnat in 10 or yrs all being well
ThomasMum
13-03-2006, 14:58
Try living in Melbourne! You can't find anything decent under $350,000!
Yep. Try living in Sydney- a decent place (nice neighbourhood is a must) to own means you have to have more than i/2 mil :eek:
LittleBoysRock
13-03-2006, 14:58
I know you don't want to hear this, but that amount is quite an "unextravagant" mortgage by today's standards.
I think a good thing to do is not buy your dream house, but a house that is suitable, once you have some equity in that buy an investment property (or two or three), then when a couple of the properties come to fruition sell them and then buy something close to your dream house.
It might take you 10 -15 years to get close to what you want, but if you don't get into the property market now it will only be harder later on down the track when the average house price is $280 or $300 or more.
Does this make sense everyone??
I realise it is not a huge amount for a property. The problem is that the houses that sell for that much are un-liveable! In all seriousness you would need an extra $100,000 just to make it ok to live in.
I am not wanting a dream home, just somewhere safe and quiet to bring up my son and any future children.
We have had to move in with my Mum in order to save for a house which I find a little ridiculous. I mean, when my parents brought their first home, they could afford, it was the norm.
Nowdays even on a good wage you can't buy a home of your own. I feel sorry for those just a little younger than me, will they ever be able to buy property?! :confused:
Even to build these days is beyond a joke. The price of land all across Aust is sky-rocketing!:banghead:
Just as an example, My Mums home had DOUBLED in price in the last 3 years... :eek:
Dont get me wrong I am, I realise I am a lot better off than a lot of people. I just cant believe how much property is increasing in price.
I think living in your own home is a lot more expensive that renting. We owned our house in Adelaide, and we had mortgage, rates, water, house insurance. Now that we're renting - even with higher costs in Melbourne - we're on a better wicket. I get rent assistance from the government, no water bill, no rates to pay, rent vs mortgage is probably a little cheaper but not much, and only contents insurance.
Having said that, we're saving every penny we can to buy!!
Sydney prices are crazy.
which is why like boomtish we rent it's far cheaper! and when we get sick of it we can just move lol
more money for baby clothes, cosmetics etc for mummy games for the consoles for daddy etc :D
Its nice to be able to say you own ya own home but the way the prices are renting is far better option like it has been said previous nothing but contents insurance to worry about!!
ThomasMum
13-03-2006, 15:26
Sydney prices are crazy.
which is why like boomtish we rent it's far cheaper! and when we get sick of it we can just move lol
more money for baby clothes, cosmetics etc for mummy games for the consoles for daddy etc :D
or better yet, you own a place or two so that you can always move from one place to the other, and still have more money for the above :laughing:
I know its a sad fact for some about Sydney, esp in the north shore...we saw a house in roseville for sale asking for $2M, blimey and the house is right next to the busy traffic Pacific Highway! :eek:
LittleBoysRock
13-03-2006, 15:29
I just see renting as dead money. Why would I pay to live in someone elses home when I could be investing in my own. Buying our own home means we have a nest egg for our retirement, or for travelling.
Superannuation might not be enough and we wont be getting a pension. I am not just thinking about the $$ I could have now but more so about the future.
Also I want to make a home the way I want it, to make a nursery for my next baby which I couldnt do in our rental.
Each to their own though. :)
ThomasMum
13-03-2006, 15:35
I just see renting as dead money. Why would I pay to live in someone elses home when I could be investing in my own. Buying our own home means we have a nest egg for our retirement, or for travelling.
Each to their own though. :)
Agree with you, MF. Thats why we bought our own place 6 years ago here in lovely North Shore and thank God we are doing alright :) , all you need is a good financial planner/advisor, excellent accountant and good investments and you'll be laughing :laughing:
beetlgrl
13-03-2006, 15:35
I know excatly wot u mean.. i live in the wester suburbs of sydney and we have recently brought our 1st place. my dp is on a decent wage. we had to save up a large deposit to get our place and our loan was for 490.000 and we are paying 740 pw back... so we have to be very tight with a money and thats for the next 30 years:crying: its pretty depressing to think that if we want any thing u have to be tied down and in debt for most of our lives to pay 4 it!! i just thank that i am 1 of the lucky ones that can afford to pay a mortage.Its so hard to get any where when renting!
I hear ya! I'm annoyed with the house prices too. We are in Brisbane and the prices skyrocketed a few years back. Then you could buy a decent house about 15km south of the city for about $150k-$200k. Now you are looking at least $300k. It sucks big time. Our in-laws brought their beautiful brick house for $220k, now it's worth more than $350k in less than 5 years. So sad. So now we have to save more deposit, and the repayments will be more because we would have to borrow more. At the moment the best we could do would be a townhouse and even then it's a stretch. :rolleyes: We are sooooo kicking ourselves for not buying back then....but we had just met and weren't ready to buy a house together!
So we are renting now, and it's sooo frustrating paying someone else's debt. And I will have to prolly go back to work otherwise we will just never get there :( And renting sucks because you never know when the owner wants to sell. Our owner keeps getting the place valued and then keeps raising the rent :banghead: GRRRR!
maybe1more
13-03-2006, 16:11
I so know what you mean, we live with my dp`s brother and we have done for the pass year, we have just purchased land north of the river and just to pay that off is $300.00 a week and its only on a cottage block:eek: we cant afford to build on it yet, but we are going to have to move out soon with another bub on the way, so we will be paying of the block and paying rent, which probably cost the same as a morgage so we have to re look at things again, but we would never have been able to save out deposit on our own, thats why we had to move in with the brother in law. Last night on A Current Affair they said its at least $320 now to get into a home. What the....... i dont understand why its so expensive.
Ladies, I am totally hearing you!!
When house prices were more reasonably affordable (say 10 years ago), my DH & I were still in uni, young, carefree so buying a house just wasn't in our plans at that stage (plus its a huge financial commitment for any couple and we weren't married at that stage). Then we used our limited resources to go overseas to live, work and travel but we were lucky as we saved £ for a house deposit.
Of course 5 yrs later when we returned to Oz, the housing boom had happened and we missed the boat. We initially rented a 2bed/2bath flat for $220/wk, 4km from Bris city. We were both on decent incomes, and could get quite a large mortgage, but we didn't want to get into huge debt. We also aren't renovators, so our compromise was to settle for a house 20km from the city, and its not our dream house, but its a start and doesn't need any work done!!
As soon as we moved in, I got pregnant (not planned, heard of the saying, new house new baby??) We are so glad we didn't over stretch ourselves as we would be in financial crisis right now . As it is, on our reduced income (I'm only working part time) we just get by, so I agree - mortgages are expensive (its double our previous rent) and its getting harder and harder to get on the property ladder.
Our 3 bed house seems small for the 3 of us, so if we want any more children we may need to get something bigger, but the cost of another child and larger mortgage is not inspiring, and we don't play the lotto.
I wish all of you wanting to buy your own home the best of luck, its not easy but is possible!!
sugar n spice
13-03-2006, 17:42
my dh is so glad i bugged him to buy our first home 4 yrs ago as we sold it late last year and made $100 000 on it. we are now renting as to get our dream home it worked out cheaper for us to build so we have bought a block of land outright and having our dream home built on it. this way as soon as it is finished we will have made $200 000 profit immedietly. i look at my sister though and there is no way she will ever be able to get into the market unless they work really hard. it is hard at the moment paying a rental and morgage but at least it short lived as far as i see why should i pay good money to someone else when i get nothing out of it. this way i can travel later, retire comfortably etc. my mum said the only way my sister will be able to get into the market is if she buys a cheap apartment soon and rents that out and then later sells that and then buys or builds.
the price of rentals is rediculous it's pretty much the price of a morgage repayment and i see the eastern states is even worse.
LittleBoysRock
13-03-2006, 18:01
I am sorry that there are others out there experiencing the same frustrations as DH and I but I am glad we are not alone!
Maybe something wonderful will happen and the housing market will plummet...just long enough for us to get into the market. :)
Oh well, I guess it will happen eventually for us if we work hard enough!
bronny-jane
13-03-2006, 18:06
i understand price rises in citys, but i live in a town of only 1500 people. a few years ago you could buy a huge brick house with landscaped gardens and a pool for around $150,000, now for just an ordinary 3 bedroom house your looking at around $200,000 minium and we have houses here for $500,000, although they are on massive blocks of land.
when my parents bought their land here in the 70's they paid $500 for it its such a huge yard it consists of front yard back yard and very back yard which was big enough for grape vines fruit trees etc. oh and there house when first built was a 3 bedroom cost them the grand total of $16,000. i wish you could buy a house and land for $16,500 now.
sugar n spice
13-03-2006, 18:16
Maybe something wonderful will happen and the housing market will plummet...just long enough for us to get into the market. :)
i agree with you that it is a problem but at the same extent i am glad it has skyrocketed as i and alot of other people who own our homes have been able to upgrade to our dream homes with still a lrg debt but not as bad as it would have been. thanks to the extra money we are making on our houses.
i would hate to see the market plummet maybe stabilise a bit.
just my opionion
my god, the prices in sydney's west are deplorable, even in penrith the starting price for a house or townhouse is 250000 - 300000.
DH and I are thinking of making a BIG move to a nice country area (he is studing to be a primary school teacher, so we can live anywhere) by the end of next year. My mum, brother and I went in on an investment property a few years ago, so I am hoping that would be at least 1/2 of our deposit.
or better yet, you own a place or two so that you can always move from one place to the other, and still have more money for the above :laughing:
Well if we can't afford one how would we afford two? Not everyone is blessed that way.
ThomasMum
15-03-2006, 06:38
It was a joke, N. I was just trying to use your words around, having your own place is not a crime or a bad thing or worse because some people think that you'd be dirt poor
Sydney prices are crazy. which is why like boomtish we rent it's far cheaper! and when we get sick of it we can just move lol more money for baby clothes, cosmetics etc for mummy games for the consoles for daddy etc. Some people CAN still afford the above even if you own a place. All you need is a good financial planning and budgeting. Carry on :)
ButterflyKisses
15-03-2006, 07:28
Some people CAN still afford the above even if you own a place. All you need is a good financial planning and budgeting. Carry on :)So true ThomasMum. My brother always says "it's not how much you earn it's what you do with the $money". I truly believe in that saying.
My DH & I met when I was 33 & he was 37. We'd been together for about 3-4 months when he said "let's open a bank account and save for something like travel or even a house". I was a bit apprehensive as I had my fingers burnt in a previous relationship where $money was concerned. Anyway we did it and saved like crazy for 12 months until we had enough for a deposit etc. I worked in the Banking/Finance/Property area in a law firm so was able to do all my own conveyancing/mortgage work etc. didn't need a broker/financial advisor etc.
Anyway we were really lucky as we purchased in 1995 when prices in Sydney were affordable and the interest rates kept dropping. We bought a brand new 2 bedroom/2 bathroom unit a block from the shopping centre/railway station/bus stop at front gate/10 mins to Westmead Hospital (although we are kicking ourselves that we didn't buy a house). We bought for $157k and paid it in full in just 7 years. 12 months ago it had doubled in price although now if we sold we'd get approx $30k less.
Because we'd paid it off we were able 12 months ago to purchase an investment property - a brand new 4 bedroom house/2 bathroom/double garage/983 sq metres yard in Hervey Bay QLD for $358K. Hopefully in 12 months we'll be able to sell our unit in Sydney pay a whack off our mortgage and move to Hervey Bay and then owe less than $100K.
We scrimped and saved but still were able to go on holidays, dine out once a week, buy beautiful clothes, etc. Budget, Budget, Budget is the key. But we were lucky as we both had good jobs (until DS arrived) and I took over our savings plan plus we had paid off our unit mortgage before DS arrived so that helped immensely.
I know it's harder now than it was when we first bought because the price of everything has gone up and having children swallows up so much of your income. If you have family that is willing to help ie. babysit etc. so you can go back to work part-time jump at the chance. If you have to move in with parents/inlaws for a while jump at the chance, if you do not have any kids at the moment and are both employed save one whole wage for your deposit and you'll be surprised at how much you can save. If you have a credit card CHOP IT UP NOW because that is one of the biggest killers and temptations that has been invented. I won't own one - besides having a house mortgage my motto is "no money no getty".
I wish you all luck with your endeavours to own your own home - it is a beautiful dream but it is possible.
MilkOnTap
15-03-2006, 08:24
Some people CAN still afford the above even if you own a place. All you need is a good financial planning and budgeting.
Oh - dont forget you also need a good salary and credit rating.
This thread has me wondering about what our future home will be like... My DH is a greenie at heart and his dream is to build a straw-bale home on about 10 acres with solar panel roofing and have a permaculture system too. Nothing more, nothing less. Organic farming with a vegetable garden and a playground for our kiddies (yet to arrive!)
Problem is, for our dream to become reality we will be looking at approx $200k for land and then another $300k+ for the environmentally friendly building materials/methods and resources.
Between the two of us we are on a very comfortable wage, but I wonder what it will be like once we have a mortgage and only he is working and I am a SAHM... I am concerned that we may get ourselves into hot water and our dream will have to be thrown into the compost heap...
Needless to say - for the time being it is much better for us to rent.
I guess it depends where you live. My best friend just built a beautiful 4 bedroom house in Adelaide for under $200K (including land!)
I used to work in a credit union & we would not give a mortgage unless you had 10% deposit. (this was in Hunter Valley, NSW). The average house price was $300,000 - so thats $30K cash savings you need - unbelievable, who has an extra $30k just laying around.
I've heard people say that once you get your first house it's gets easier (using equity etc) but it is damned hard to get there. We rent throught Defence Housing & our rent is subsidised (thank God) - i think we will stick to a good thing while we can.
I admire anyone who can own their own home - :yelclap:
We live in Sydney and rent but we are planning to buy in the next few years. Not till bubby has everything he needs and we are able to enjoy his first few years without worrying about a mortgage.
DP earns okay money and I earn good money but I won't be working for a while because I am not worried about owning at the moment. I would rather be a SAHM for a while and live on one wage.
We are very lucky that we are able to live in a big 4 bedroom, three bathroom house for cheapo rent because DP knows the landlord.
I am also lucky that DP is a westie boy and we have no plans to move to a "nicer neighbourhood" because our neighbourhood is full of people just like us and we are plenty nice thank you very much. DP was raised in this area and he is happy and successful and I am sure our son will be also!! We live in a quiet little street and we know the neighbours.
Buying in this area also means we will get a bee-yoo-tee-full house for our money compared to a little dumpy one. Yay for the west.
ThomasMum
15-03-2006, 09:24
Yay for you shed! Be proud be proud! :yelclap:
Btw I've seen nicest and beautiful properties in the "westies" alright, and some of them are bloody expensive too! So I don't know whats the bigdeal about westie or northie, eastie and this shouldnt be an issue. I hate when people are making a big deal out of it!
After all we are all Australians or live in Australia, we've to be proud to be part of Australia, no matter where you are. :thumbsup:
MilkOnTap
15-03-2006, 09:30
I am also lucky that DP is a westie boy and we have no plans to move to a "nicer neighbourhood" because our neighbourhood is full of people just like us and we are plenty nice thank you very much. DP was raised in this area and he is happy and successful and I am sure our son will be also!! We live in a quiet little street and we know the neighbours.Buying in this area also means we will get a bee-yoo-tee-full house for our money compared to a little dumpy one. Yay for the west.
Absolutely! We are just on the Eastern suburbs cause I wanted to be near the ocean.. I didn't realise that we could be living somewhere ALSO near the ocean for much cheaper rent! I guess thats what happens when you move interstate and know nothing about where your moving to...
I would MUCH prefer to move down to the Southern suburbs, Sutherland etc... Beautiful areas and neighbourhoods down there - plus we could have a nice 3 bed home with a backyard for the same $ that we pay now for a shoebox 2 bed unit where we have to dry EVERYTHING in the dryer cause we dont even have a clothesline!
Cant wait to get out of Sydney... Melbourne - here I come!!!
SassyMummy
18-03-2006, 16:55
It's only a recent thing though - the skyrocketting prices I mean...
In 1998, my parents bought a 2-storey 3-bedroom house with a big yard and a huge rumpus room. It wasn't the best house...but it was average and well-maintained. They bought it for just $101 000. The sold it for $111 000 a year and a half later (so in 1999)...because they divorced (funny how they FINALLY bought their own place and THEN divorced...lol).
I love to imagine what kind of money they might have had if they had just waited a few years before selling! lol. We'd be a fair bit richer because of it...and the house would have been a great investment! (I doubt either of them would have bought another house...they both still rent at the moment...so they'd have a bit extra for car/rent/whatever they wanted).
It IS a fair bit ridiculous...especially since living in a house of your own isn't really a luxury. Sure...a swimming pool in the property adds to the price...but people are just getting greedy!
kiwibird27
18-03-2006, 17:08
Agree completely - However if u wanna buy in Penrith at the moment a certain company has a great deal on vendor financing, no fees, can move in immediately and it's your house, just need to save equivalent of the deposit in the first 6 months, which is taken out as weekly payments - they call it rent but it's 100% yours and at the end of 6 months u buy the property, using the "rentalpayments" as deposit, no fees, interest or anything!!!!
I live on the lower north shore and a one bedder **** old apartment is 350,-400 thousand!!!! Nice, we will never afford to buy here!!!!
Might move to gold coast - lower tax in QLD and far more reasonable - but then your wages drop too so u can't win!!!!
melbourneprincess
26-03-2006, 00:28
Hi Ladies...!
I am new here, but as I have somewhat of a fascination with real estate, lol, I just *had* to add my 2c worth! :)
I agree with everyone who says the house prices these days are (generally) astronomical! First home buyers have it very, very tough. But even with prices the way they are, I don't think it's impossible to get in. The secret is to start small (take baby steps) and be creative.
DH & I started off by buying a block of land. Thanks to the boom, this eventually doubled in price, and we were able to sell and pretty much pay off our house. However, our house is just a very basic one, and it's not in the best area either. We bought here because it was affordable for us and allows me to be a SAHM until our DD stars school. To live in our 'dream' area/house, we will still need to upgrade to a bigger mortgage, but at least it will remain affordable because we took baby steps and didn't jump in the deep end with something that we would have had to struggle with.
Ok, so the boom's been and gone, and houses are much more expensive now, but there are still heaps of opportunities out there. Why not start out with an apartment or townhouse? Or a house in a not so trendy area? Or if you don't want to live in the area you can afford, for example, why not buy a house where you can afford as an investment (rent it out) - and rent in the area you like? Why not find someone who is also looking to buy, each buy a property and rent it out to the other person (this way, each of you can claim heaps of deductions on interest, etc, and this money can go back into paying your respective mortgages at tax return time). The main thing, I think, is to get in. Eventually, prices will increase even further, and when they do, things will only get harder, not easier - hence, getting in is the key!!!
I live in Melbourne, and while the median house price here is something like $350K, you can still buy in less 'desirable' suburbs for under $200K. The same applies to Sydney, albeit on a bit larger scale.
There are lots of examples of things you can do, the key is a positive attitude and lateral thinking!
Anyway, just my 2c worth.
sugar n spice
26-03-2006, 13:35
I was thinking the other day how you said you needed to save $30000 the problem im sure you realise with that is unless you can save that inlike 6mnths tops the houses are going to go up more than that, so hard isn't it:banghead:
onabreak
26-03-2006, 15:12
My DH and I bought our first house last November. I was sick of paying rent and the owners wanted us out so they could put up the rent. So we started looking and found our perfect home, it is about 30ks from Brisbane city, but it is our dream home on acerage with beautiful landscaping and awesome neighbours.
The only down fall is that casue DH runs his own business we had to get a lowdoc loan which charges you more in repayments. We went from paying $250/wk rent to now having to pay $800/wk for a mortgage :eek:
Luckily DH earns good money that we can afford this but now it is coming into his slow season for work and we are going to struggle for awhile. It is just ridiculous how much housing is now.
I was married before and have had a house aswell and back in 1998 we bought a house for $126,500.00 and we thought that was expensive back then. When we divorced 2 years later we got the house valued and it had gone up to $300,000.00. How crazy is that. When I look back on buying a house for that much it is just so cheap compared to now.
My sister just got married and has a baby on the way and with the income her husband earns I can see them never owning a house, which is so sad.
I'm so glad we bought when we did ! I've been reading though these posts and looking at house prices lately and OMG there is no way we could afford anything these days. Our house cost $96 000 5 years ago it's now worth well over the 200, 000 mark ! we owe less than $70 000 on it so technically we have over $130 000 in equity WOW!
That said we bought a house that was not lovely BUT it was livable and it is too small for us. We also made the choice to live with only 1 old car (ie cost next to nothing therefore no repayments + as it's so old replacement parts are very cheap). We set our selves up to live on only one income so when I have worked it's all just 'extra' money. At the rate we are going we expect to have our home loan paid off completely in 7 years. I think however that we will redraw money before then to extend the house so I can move my hubby's office - OUT of my LOUNGE ROOM !!! :) (hubby works from home so it can be rather inconvenient)
reAllytee
26-03-2006, 23:50
I totally agree with melbourneprincess !
When it comes to housing these days it has to be baby steps ! So that being said you need to consider different suburbs & types of housing.
For us we had planned to buy a house, get married then have bubs !!!! This all happened very differently so it meant with bubs deciding to make an appearance a year early we had to down grade our ideas ! So rather than looking in the Shire are as we knew we couldnt afford the mortgage on one income if interest rates rose or anything went wrong so we looked this way Sydney south west ! Was much more affordable & even though we were still looking at townhouses we were able to find a bigger 3 bedroom place which was perfect & within budget. Needed some work but we were up for the challenge !
The other big thing is to get something affordable so that you can make bigger payments on your mortgage its a big must !
So we have now been here over a year & yes the market slumped not too long after we moved here which was dissappointing as it meant we couldve gotten something bigger but these things happen !
Too many people nowadays get too big a mortgage & this is a bad move as you will never pay it off.
We made this move just to get into the market hopefully one day after we have had another 1 or 2 kids we shall move to our "dream" home but for now we have to make do ! It hasnt been perfect especially being further away from friends & family but its not that far & it means we have made the place our own :)
My DP ( is online here sometimes as Barry ) works in this industry & he just shakes his head at the amount of people who take out a mortgage with no deposit who can barely make the minimum payments so even after 5yrs they are nowhere just to make this easy say they have paid $40,000 into a loan of $100,00 by the time interest is added plus all other bits & pieces taken out they havent really made a dent into that $100,000 instead they still owe something like $80,000 so be really really careful about this & pay more than your minimum especially in the first 2yrs !!!
mandymoo - You could possibly change your loan over & refinance after a year ! This will be the best thing for you to do otherwise that loan will kill you !
If you want some advice PM Barry im sure he would be happy to help you out any way he can :D
mummyof5
27-03-2006, 09:30
I agree with melbourneprincess, nobody says you have to live in the house you own...I tell any of my friends who will listen, especially defence families, as they get subsidised rent, to buy out of area and rent it out. You can claim tax deductions on the interest you pay on your mortgage then, and the rent goes to paying off your mortgage too. We are actually better off, for the next month until hubby gets out anyway, renting through defence and renting our interstate house out. After that we will be paying a really big mortgage:fingerscrossed:
Just make sure you buy the property in whoever's name earns the most (i.e. in DH name if you are a SAHM, as you have to pay tax in the first place to claim a deduction).:)
I think some investment loans have lower thresholds for deposits, and once you have some equity in the house, you have the money for your deposit on your own home...
Oh and last but not least:ecomcity: :ecomcity: the financial guy we spoke too said remember the way people with lots of property do it is to buy first house, put as much on loan as poss, then use equity in it to buy no.2, make interest only payments on it, then use all leftover rental income on first property as well as your usual mortgage payments, to pay it off quicker, use equity in those properties to buy no. 3, etc, etc. Always making interest only payments on all properties except the first one in the chain you are paying off. Hope that makes sense to you all...
Good luck everybody!!!!
Hi,
We live on the Gold Coast and the price of houses up here is a joke. To buy a house for 300k you would be in a small 2br unit. Houses are around 350-450k for standard comfortable living then anything extra goes higher in price. Very hard for first home buyers or new people moving to the coast.
Its sad really, all we want is our own comfortable home but to do that we would have had to sacrafice children and we werent willing to do that.
Something needs to be done to make it easier for first home buyers. With these prices the $7000 first home buyers grant just wont help us :(
Good Luck to every1 out there in your endeavour to buy your own home!
leanne
sugar n spice
27-03-2006, 12:00
Well we bought our first home in july 2000 for $114 900 we sold it nearly 5 yrs later in nov 2004 for $210000 though we did drop the price alot sometimes we wish we would of not excepted such a low price but if we didn't the land we wanted to buy would have been out of reach. Anyway we bought a block of land 706sqm for $108 ( this is a really nice estate with top quality houses in it) now the same land in the estate is being sold for about $150 000 so that is already a profit. anyway after selling our house we were able to pretty much buy the land except for a smll loan of $20 000 to cover fees, land etc. we are now building our dream home on it 4*2. borrowing $210 000 and that said once the house is built we will easily be able to sell it for $400 000 that is a nearly $200 000 profit in the 9 months of building so i think we have made a fantastic choice and once it is landscaped had a shed put on it and all we should have made a nice $
Fairyfloss
01-04-2006, 02:38
I agree with melbourneprincess, Yes, the housing prices are high, but with some careful investigation and planning anyone with a regular income can get into the house market, it took us over 9 months and looking through almost 30 to 40 suburbs. we basically look at a sample of house from right around the melbourne, starting at sw and working our way inch by inch on the map through the northern suburbs and then down the east and south east, and finally managed to find a suburb the offered me the closest distance to city centre (cause I work there), with a resoanble price in a pretty nice area. the house I have now is not my dream house, but if I keep working hard and stick to my budget, I will get there :fingerscrossed:.
Powered by vBulletin® Version 4.1.9 Copyright © 2013 vBulletin Solutions, Inc. All rights reserved.