Saved money from my first full time job. I put away a lot of money into savings. I didn't spend it on going out, nice clothes, shoes, bags, a nice car with a loan (unlike some of my friends who still rent then complain about property prices).
I didn't save the full 20% so I had to take out mortgage insurance to buy my first property. It really was dead money but I really wanted to get on the ladder and got my first property at 21. I didn't use the first home owners grant, I bought it as an investment.
I think it may be the wording people are using that makes this topic emotive and that is people feeling that just because someone says they worked hard to save, doesn't mean ALL others don't. There's not just 2 types of people - hard working and lazy.
I think that there are 4 categories (generally).
1.Those who have the ability and luck and privilege to be able to afford a house deposit and who also make sacrifices in lifestyle choices to save for a house deposit and do so successfully.
2. Those in the same boat as the above but decide not to get a career, not to save and to just l life to the max and enjoy expensive everything - clothes, cars, holidays, partying etc. They didn't save and buy a house and now can't afford it or didn't save enough to live in their dream location.
3. Then there are those who have houses or deposits given to them by family and friends. They truly are the lucky ones!
4. Those who would love nothing but to save a deposit for a house and try very hard, but unforeseen circumstances they have NO control over stops them doing so, whether that be as some have mentioned redundancies, illness, IVF, domestic violence, born into poverty etc. I believe a lot can be done to help support people who find themselves in these situations, but for housing to be affordable to buy these people the market would have to crash at such gigantic proportions that prices will drop but unemployment goes up and many other effects.
Hence why I've said before I feel very privileged to be in category 1 and not category 4.
But I'm not going to also apologise for being in category 1, not to those in category 2 who had the privilege and luck, but hose other priorities.
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10-05-2016 15:19 #11
How did you get the money to buy your first house?
Last edited by A-Squared; 10-05-2016 at 15:43.
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10-05-2016 15:27 #12
How did you get the money to buy your first house?
Lived at DHs parents for 2 years- first year they were travelling and needed house sitters so it worked well for both parties.
We did the same thing again to upsize - we only did 10 months as we had money from first property and as we had a toddler it was really tough sharing again. (And I think house prices were rising faster than we were saving so it wasn't really the best option, we should if held onto our first home for longer, but they needed house sitters again)
It was hard and living with my MIL almost destroyed our relationship with them- it took awhile to get back to friendly terms both times.
Not everyone has this option, we also just got in when they were offering first home owners grant (14k) and free stamp duty (9k).
We were so lucky to get our foot in the door when we did, prices quickly skyrocketed shortly after and we wouldn't be able to do it now.
I would imagine my kids will be living with us till they are 50.
Eta: we didn't have 20% deposit the first time so had to pay mortgage insurance but it was only 2k back then. Somebody told me it's now around 20k?!?
Last edited by Little Miss Sunshine; 10-05-2016 at 15:50.
10-05-2016 15:27 #13
Especially health costs for yourselves or family members.
Infertility treatment bites. Most people don't need to spend $20k+ per child to make them. I know people who've spent $50-100k to have children, all because of medical issues.
10-05-2016 15:28 #14
combination of savings and a wedding gift from my parents.
we saved the deposit in a year as we'd gotten married overseas the year before and paid for it all ourselves (all cash, no debt).
so while we've had a couple of legs up from my parents, its largely been our own hard work that's got us where we are.
we also invest and continue to try to expand our asset base (all shares at the moment, we don't have a ng investment property!) 😉
10-05-2016 15:31 #15
About 1/3rd was my savings from work, 1/3rd was DH's savings and 1/3rd was from my inlaws. We bought just at the right time and our house has doubled in value in 5 years
10-05-2016 15:32 #16
We saved enough for a deposit and dp at the time (now dh) could get the first home owners grant plus we bought a small 2 bed cheap place to get ourselves into the market, we didnt go in big and expect high end living straight away.
10-05-2016 15:33 #17Senior Member
- Join Date
- Aug 2015
Savings and fhog of $12k. I bought my first place when I was 20 as a single working full time.
I bought a 2 bedroom unit.
I made money on that place and was able to use the profit to build the family home with exh
Pretty pi$$ed that in the divorce he took half the money when he contributed nothing to it.
So the sacrifices I made at 20 I had to make l over again 10 years later to afford anything again.
10-05-2016 15:38 #18
Ive always been a big saver and had a fairly good savings amount (for a 22year old) and when i meet dh he had just come back from an army mission which paid him alot once he got back to australia. I encouraged him to save it and a year later with the help of fhbg we brought our first place
Prices were muchhhh lower then so i totally get how its even harder now to save enough for 20%.
10-05-2016 15:51 #19
We were mid twenties, DINK (double income no kids) and although it was a low-ish income (around $50k) we managed to save $13,000 while renting, and combined with the additional $14k FHOG managed to scrape up the deposit of an el cheapo first home. We would struggle to do that now that we have children.
10-05-2016 15:56 #20
We bought our first house in a suburb we could afford to buy in on a big block in 1994. We saved the deposit ourselves and rented it out while we lived at home. Dh then got transfered country with work which came with a house paying very little in rent. We then bought a block of large land a few years later for investment purposes. We lived in the house we bought for 5 years and did some renovations. When we sold it we were exempt from capital gains and the area had boomed and the block was subdividable, we sold for nearly 5 times the amount we bought it for. We then moved back country and bought the house we currently live in. The block we have will be sold eventually (when the town booms again) and the area has been rezoned since we bought it so is subdividable now, we expect to make a very good profit for it when we do sell.
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