+ Reply to Thread
Page 3 of 5 FirstFirst 12345 LastLast
Results 21 to 30 of 47
  1. #21
    Join Date
    Jul 2010
    Location
    The Kimberley WA
    Posts
    4,622
    Thanks
    916
    Thanked
    1,180
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Quote Originally Posted by MothersMilk View Post
    We are mr and mrs average and we broke into the market by buying a cheaper house, requiring a smaller deposit. This meant we were able to the use that house as a stepping stone to a larger, more expensive house that we would have struggled to ever save a deposit for if it was our first house. Our income is below average, not much at all.
    This is what we did too. We both lived at home and saved for the first few years of our relationship. We bought in a less desirable suburb but one we could afford, we saved for our deposit with no help from family. Neither of us were making much money back then. There was no such thing as the first home owners grant either.
    We then made do with our little old house, rented it out while hubby got posted up north, had crap tenants in the meantime which cost us lots of money. We had to renovate to move back into our house that we had trusted others to care for. By this time we had both been working and studying hard to get higher paying jobs. My hubby had a work accident and we very nearly lost our house due to difficult times financially but we got through. We bought our second house and rented it to mining. The suburb we lived in boomed, we sold up and made a fortune which set us up to buy another property. We now own 2 properties and still paying for our third. People can do it!

  2. #22
    Join Date
    Mar 2008
    Posts
    3,532
    Thanks
    1,313
    Thanked
    1,390
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    This is an interesting discussion!

    Thanks for contributing everyone

  3. #23
    Join Date
    Apr 2011
    Posts
    1,005
    Thanks
    39
    Thanked
    591
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Quote Originally Posted by OurLittleBlessing View Post
    It's becoming harder and harder for people to provide even one house for their family, when others have 10?
    Presumably the other 9 homes are rented to families too, who in many cases couldn't afford the finance to buy the home but want to live in a particular area, or simply need a roof over their head but can't afford to buy? Property investment based on rental returns alone generally doesn't provide a huge return so having a large part of your savings, superannuation, borrowing capacity etc being tied up in a house that you rent to someone else isn't the magical financial windfall that it's made out to be.

    There are many reasons for buying property - it may be so that you can downsize when you retire, have a unit for your kids near a uni etc etc

    I don't see that having investment property is being mean spirited at all.

  4. The Following 6 Users Say Thank You to Hulahoop For This Useful Post:

    atomicmama  (13-12-2012),Ellewood  (13-12-2012),Guest654  (13-12-2012),MothersMilk  (13-12-2012),NancyBlackett  (13-12-2012),PomPoms  (13-12-2012)

  5. #24
    Join Date
    Mar 2006
    Posts
    4,765
    Thanks
    1,903
    Thanked
    2,790
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    I think the key thing people overlook is that those who bought property prior to about 2009 are laughing all the way to the bank, and those of us who only managed to get in in the last couple of years are in negative equity.

    I did just what others did - bought a cheap house a looong way away from everything. I commute 1+ hour each way to work, live 30+ minutes away from all my family and friends, poor DD is in the car a LOT. However, as I bought my house in March 2010, I have absolutely no equity. When you consider the costs of upgrading or buying an investment property - stamp duty, selling fees etc. I would need something like $100,000 equity to upgrade - assuming the market doesn't boom again, if my income was average then it would take 10-15 so years to get that sort of equity in my current house.

  6. #25
    Join Date
    Jul 2010
    Location
    The Kimberley WA
    Posts
    4,622
    Thanks
    916
    Thanked
    1,180
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Quote Originally Posted by Hulahoop View Post
    Presumably the other 9 homes are rented to families too, who in many cases couldn't afford the finance to buy the home but want to live in a particular area, or simply need a roof over their head but can't afford to buy? Property investment based on rental returns alone generally doesn't provide a huge return so having a large part of your savings, superannuation, borrowing capacity etc being tied up in a house that you rent to someone else isn't the magical financial windfall that it's made out to be.

    There are many reasons for buying property - it may be so that you can downsize when you retire, have a unit for your kids near a uni etc etc

    I don't see that having investment property is being mean spirited at all.
    It certainly can be a magical windfall though. I would call being in a town where the minimum rent is $800 and the highest is $1,900 is certainly a huge return which is the case particularly over here in WA thanks to the mining boom.

  7. #26
    Join Date
    Dec 2009
    Posts
    827
    Thanks
    36
    Thanked
    433
    Reviews
    1
    Achievements:Topaz Star - 500 posts

    Default Investment properties

    For anyone who says you can't get a house these days. I bought a house as a nursing student- I had saved since I was 15 in part time jobs and then finally had enough to buy a crappy house in a crap area backing the train tracks (literally if you sat on my back fence you could touch the trains going past- it was so peaceful). That area boomed, so I bought another house- in order to get finance I worked night shift 6 nights a week- in 2 years I didn't have a weekend or public holiday off. It can be done on average wages or for people working in average occupations. And no of you are prepared to work hard why should someone cap the wealth you can accumulate. I had no handouts from family or anyone else. Both my houses have come from pure hard work, lack of social life and frugal living.

  8. #27
    Join Date
    Feb 2009
    Location
    my house
    Posts
    17,710
    Thanks
    1,392
    Thanked
    7,295
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 postsRuby Star - 15,000 posts

    Default Investment properties

    No, but I think things like negative gearing and tax breaks should be somehow abolished.

  9. #28
    Join Date
    Nov 2012
    Posts
    1,292
    Thanks
    409
    Thanked
    752
    Reviews
    0
    Achievements:Topaz Star - 500 posts

    Default Investment properties

    Hey KimberleyGal, I was wondering if any WA people were going to contribute! You wanna talk about housing affordability, come to WA and check out what we are paying (and not just in Kim/Pilbara)!

    Having said that, neither me or DH work in the mining industry, yet we are now comfortably in the market with two properties. We made massive sacrifices on lifestyle to get where we are (lived in undesirable suburb, fibro place with no aircon through 5 WA summers), but we chipped away at the mortgage and now have a second.

    Yeah, it was hard when all our friends had spiffy 4x2s with landscaped gardens, but now we are light years ahead of them financially. Short term sacrifice for long term gain. Most people could do it, but choose not to, to their own detriment IMO.

    I do however agree that the tax breaks on investment properties will eventually be abolished, and rightly so (and that's coming from one who benefits from them)

  10. The Following User Says Thank You to Jellyfishie For This Useful Post:

    Meags82  (13-12-2012)

  11. #29
    Join Date
    Sep 2005
    Location
    Perth
    Posts
    8,544
    Thanks
    1,351
    Thanked
    2,307
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    I don't mind if Australian citizens have more than one property but I don't like too much foreign ownership. It annoys me.

  12. #30
    Join Date
    Apr 2011
    Posts
    1,005
    Thanks
    39
    Thanked
    591
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Quote Originally Posted by Kimberleygal1 View Post
    It certainly can be a magical windfall though. I would call being in a town where the minimum rent is $800 and the highest is $1,900 is certainly a huge return which is the case particularly over here in WA thanks to the mining boom.
    Sure it can be - as another poster said if you got in early enough. My first house was a tiny fibro in Mandurah town centre for $70k. Unfortunately no storm has blown it away yet! The rent is low and I have always had old pensioners in it, so it's the capital growth not the rent income that is making the money. Again, I don't think I'm mean by keeping hold of it, to the contrary.


 

Similar Threads

  1. Replies: 114
    Last Post: 11-08-2012, 09:36
  2. Sheds in rental properties?
    By GreenMama in forum House & Gardens
    Replies: 4
    Last Post: 05-02-2012, 19:33
  3. Investing in investment properties, do you have one, or two or more??
    By Mumma2threecherubs in forum Working From Home
    Replies: 5
    Last Post: 29-01-2012, 19:36

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
free weekly newsletters | sign up now!
who are these people who write great posts? meet our hubbub authors!
Learn how you can contribute to the hubbub!

reviews
learn how you can become a reviewer!

competitions

forum - chatting now
christmas gift guidesee all Red Stocking
Ro&Co
Share magical moments this Christmas with this gorgeous gingerbread house. Exclusively available in Brisbane, with FREE delivery in Brisbane Metro areas. Each Christmas Centrepiece is unique and made to order, from $240.
sales & new stuffsee all
Bub Hub Sales Listing
HAVING A SALE? Let parents know about it with a Bub Hub Sales listing. Listings are featured on our well trafficked Sales Page + selected randomly to appear on EVERY page
featured supporter
KindyROO
KindyROO offers activities for babies & toddlers in a fun learning centre, focussing on developmental education. Classes are available at three Brisbane and two Gold Coast locations. Enrol today & help your child to reach their full potential. Visit the website to find out more.
gotcha
X

Pregnant for the first-time?

Not sure where to start? We can help!

Our Insider Programs for pregnancy first-timers will lead you step-by-step through the 14 Pregnancy Must Dos!