People I went to school with were able to buy houses not long after we finished high school with only between $20-30k, it's so expensive now! And the first home buyers grant only applies to homes less than 5 years old which is a bit unfair! We missed out on getting it because our house was built in the 80s but we still needed nearly $60k to buy it!
We weren't even able to buy in the area where all our family lives because it's too expensive. We would have had to save for another 2 years to buy there, so we moved 2 hours away where we could actually afford a home.
I bought my first house in 1999 before the prices started going crazy. I paid $98500 and the deposit was $8500 of which I had saved over the years (7 of them). It was a crappy weatherboard house on a massive block. 6 years later I bought my second house for $440,000 a much bigger family house, the year after that I sold my first house for $260,000 to an investor who demolished it and put 3 on the block. I'm still in my big family house now, it's all renovated (well 90%) and worth a hell of a lot more then what I paid for it. It's made it into 2 houses in 1, so when my oldest says he wants to leave home he can have his own wing with all the trimmings of a house and save for his own that way
I got my first home built when I was single. I had a goal that I must be in my own place by the time I was 30.
But I didn't actually do anything really.
At the time, 08/09, there was a $30,000 FHOG to build in a rural or regional area and banks were offering 100% finance at good rates.
It's a small 13sq living home on a 550m2 block. It's now our investment property. In that area you don't build or buy for capital growth but rather the rental return. Currently 7%.
Studied, established career then worked (including shift/overtime sometimes for extra $) for quite a few years before having kids. Saved a good deposit while still managing to live it up with all the other young ones. Parents gave me diddly squat (not that they should have to 'give' me anything).
I wouldn't have been able to save for a deposit once I had kids. Having kids is hard - the costs (especially of you work outside the home) are astronomical
I married someone with a house. Very lucky.
Also agree it's not fair to say work / save harder. The best I could have done on my income alone, with a deposit would have been about 600k which doesn't get you much in Melbourne.
Additionally I have no family here to help me. And ended up having to go through IVF. That would have been a major hit to my ability to pay had I been single.
We saved and went without out a LOT while renting. It was hard but we knew it was our only choice.
I had some savings from living at home and used the FHOG. I was 20 and looking to buy but decided to build which had more subsidy. I found a block of land by driving around that was cheap- the developers and real estate agency hated each other so it wasn't going anywhere. I bought a 600m block in a cheap suburb for $60k and built a $100k house on it using the cheapest builders I could find. It's now doubled in price, I built it back in 2002. 😳.
I hated living in the burbs so moved back to my parents to save some money to buy a country house. I said I like it here can't I buy your house? They said it's not for sale. I said fine I will live here rent free forever and wait for you to die 😄. They decided to sell to me. So we all live together and I pay money each month to them that pays off the house. They are welcome to live there forever even after its paid off. We put on an extension and have our own areas. I became a solo mother by choice and they look after the kids when I'm at work.
So not a normal scenario but it works for us. It's a big house and they go away a lot. I will have the house paid off in 5 years. I rented the house I built out and it just ticks along nicely. It's just negatively geared, think I might lose that this year.
Last edited by witherwings; 11-05-2016 at 11:09.
We saved + FHOG. Bought the house when I was 21, I was in my last year of uni and (now X)DH was a trainee police officer. All my saving came from working in fish and chip shops while at Uni full-time. I lived with my parents until we bought...
We were very hard pressed to get a loan, had to pay MI and used a Keystart loan, but we knew we could manage the repayments.
I'm pretty good with money, and I'm lucky to have a mortgage of less than 120k now...which is just as well as I'm a pauper now - single mumma on Parenting Payment. I have no other debt (saved to buy a car) and no longer use a Credit card...
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