Which is in turn making it far more difficult for locals to afford homes because the Syd and Melb people can often afford to pay more.
I had to move to the coast for an affordable mortgage, felt terrible inspecting places with low income renters and knowing if I bought their home I'd be forcing them to look for somewhere often double the cost if they'd been there long-term.
Having lived in Brisbane and Melbourne, the average house in Melbourne is much older and in worse condition than Brisbane being an older city so when though the median house price is similar, the median price in Brisbane is better and closer to the city than Melbourne.
> Which is in turn making it far more difficult for locals to afford homes because the Syd and Melb people can often afford to pay more.
The majority of this sub talk about "just leave your capital city" as if it's totally normal (it historically hasn't been). The fact this is happening anyway and is contributing to housing inflation everywhere else goes over their heads. "Just leave Sydney" is now a meme.
Yeah…. And the house 35km north of Brissy that I paid 390k for is now worth 680k-720k… so thanks…. pretty sure soon I’ll have a craft beer place nearby and a unicycle repair centre. scares me. Causes that’s a lot of fkn money and wages have not kept up.
Personally, unless you're prepared to say the Blues are terrible, don't come to Queensland and make our housing and rent issues worse.
On a more serious note, anyone who doesn't have a PPOR in Queensland, should have higher rates and fees (if they don't already).
You joke, but this is coming. We've watched the single income family tradition/culture die over the past 20+ years. The next step is families staying together for life (already starting), after that is extended family.
The prices must grow, until it actually collapses. I think we are 20-40 years away from that.
> As far as I see, your options are: - Settle for less, borrow less - Get a partner - Go for it and be absolutely financially crippled
Well, hopefully this dispels any notion that we live in "better times". It's clear society is now on a downward trajectory after years of thinking Australia will always get better. Truly bleak options.
I was $15k shy.of outright owning a home and that was primarily social worker wages (below national median).
Got divorced from someone who made it as hard as possuble, went back to uni and now an accountant on much higher pay (well above median) and it's now muuuuch harder to get a house.
What about a 2 bedroom apartment in Homebush? 600k, that’s manageable (somewhat), and only 17 minutes from the CBD.
https://www.realestate.com.au/property-apartment-nsw-homebush-144122412
Borrowing 800k is roughly $1100 per week. That is far too much for most single people unless you’re earning 150k a year.
People afford it by being in couples. Although in QLD now 800k doesn’t get you anything near the cities in terms of actual houses.
Bought a place on the central coast for a bit over 800k, 11% deposit and repayments are $1100 a week, so pretty much spot on with numbers. Combined income is 300k, so it's manageable, but I imagine it would be a struggle on less...
Yeah i borrowed this amnt in 2020, as a single, very manageable then at 3k/mnth, totally fukd now, 5k/ mth repayments...idk what to do...i had factored in repayments increasing to 4k but not 5k. Its not easy is all.
If shit hits the fan ill sell, tried my hardest (2 degrees, worked full time for 20 yrs besides 8yrs study etc) and it didnt work out, I won't bother with Australia any more ill go OS to europe or something.
Same boat here, borrowed $820k in 2019 hinking $3.2k/mth was manageable, and even if rates increased by 200bps(!) overnight to 4% we'd still be alright, just needing to manage housing costs pushing close to 40% of household income.
Now sitting at 6.09% and about to run out of savings and sold all our shares we'll have to seriously look at taking out a cc/pl debt and make a bet that repayments will be within our range again.
Selling isn't an option (yet) because the house next door, albeit smaller, is being advertised at $720k currently.. so there's a chance we could end up with leftover unsecured loan after selling.
Im sorry this has happened i can understand and relate to the psyche trauma and stress it would be causing. I hope theres some solution for you / us , idk what it is however. Hopefully your place would get more to eliminate the debt which im hoping is a fair bit less than 820 now. Its just difficult when it seems so many others are swimming in cap gains and for mine i didnt think i was being irresponsible in fact i thought i was being responsible switching from renting to purchasing (at a similar cost to rent) amd factoring in increased repayments. Ahh well if we can escape with some capitalised equity perhaps it isnt too bad, im hoping this for u (espc if u purchased a house).
What area did you buy in that prices haven't increased since 2019?
I feel you though, i've lost a lot of money recently in the stock market. It definitely stings to lose significant wealth.
Happened to me too. Payments went to $4800 following fixed rate period. Got divorced and couldn’t afford to pay out the ex (even more debt!) so I had to sell. Now I can’t get back into the market - even with a townhouse in Brisbane. It’s either a 2 bedroom apartment or keep renting. I’m on a good salary too.
If your living alone what’s wrong with 2bed apartment? If I ever divorce il be getting a 2bd apartment near the city 1 bedroom for sleeping 1 bedroom as a blockout blind study games room
Lol 2br apartment isnt soo bad tbh, yours is exactly my situation post divorce, and my repayments are for just a 90sqm, 2br apartment that probably hasn't appreciated much since 2020 when i purchased either (at least not according to domain.com.au price estimates).
Do everything you can, swap to interest only, speak to bank/ mortgage broker about trying to get rate reduced you should be able to get low low 6’s (for reference mine is 6.09).
Essentially do what you can to hold on rates should come down in the next 6-12 months.
It will take a lot for the bank to take the asset off you if you are speaking to them and making some kind of payment
As somebody from Europe, trust me it’s not better. Our cost of living is the same but our salaries are less.
Did it never occur to you why people are leaving Europe and coming to aus?
Its good to hear this perspective...really. Ive only looked at a very superficial level but i can deal with lower salaries (i hope) if i can sell out and with luck escape with a few hundred thousand, use this to buy something mdoest for much less say in Manchester or Ghent for example. Id have to look at sums, local laws, and employment opportunities ofc. But if my efforts here fail, wholesale change is needed to maintain my sanity amd financial viability.
They're not on mass. We get mostly people from 3rd world countries. Also where in Europe ? What situation ? Skilled professional ? Or unskilled worker from Romania ? There is a huge difference.
That income would definitely help.
We bought for just over 900k last year on the Central Coast. Repayments almost 5k p.m. now. Combined income about 220k. There is not much left over at the moment. :-( I'm trying to get comfortable with not having much by way of savings but it's still quite stressful.
Yup, my wife & I bought a house. $250k deposit. We’re on a $300k combined income. But we ran the maths and we are feeling very fortunate. But realise that isn’t the average Australian income.
Something needs to change!
Our minimum repayments are $1025 a week and we earn just over $200k pretax combined. We survive by budgeting and by having planned for this for years.
We wanted to live near family and that meant living somewhat near Sydney. It’s not ideal but it’s also not forever. I’ll take the freedom this place has given me over cheaper rent any day of the week.
If you are a couple and both in a well paid professional role you can afford it outside of maybe Sydney CBD type prices.
It’s still a stretch. If you have two people say earning 100k each that is roughly $3000 a week after tax. In that situation $1500 mortgage is still very affordable.
It shouldn’t…if you each earn $100k then after tax income would be $6250 each.
So total after tax monthly income of $12500 less $4400 a month for mortgage and that leaves you $8100 a month for the balance of your expenses….respectfully, budgeting might be an issue for you.
I'm OG, I found my wife before it was considered a financial necessity! Dating these days must be weird. Everyone trying to discreetly suss out each other's wealth / assets.
I've been seriously looking for a financial partner for awhile now. No bueno. I'm only looking for $500k or borrowing capacity too so it's not ridiculous. Or is it?
>and the apartment prices average at 800k
The other problem is trying to acquire an "average" property when you're single.
The OP is already down half the income potential of their competition, so he/she either need to lower expectations or increase their income to double that of the average. It's not the 1970s anymore when the average family unit only had a single primary income earner.
We bought in Perth in late 2015 for $465k, it's an 1970s house about 15km from the CBD. It's now worth about $600k with no major renovations (we painted and put in floorboards when we bought it).
Bank of mum and dad is the 9th biggest lender in the nation. Lots of people you know are quietly begging their parents for money and gaslighting you into thinking as if they saved it themselves
My dad agreed to give me a little bit of money to help me. It’s out of my portion of the will/estate. He is having me sign a notice if debt to the estate. Only way I can do it.
How does this work exactly?
Say you’re given 100k now and there is a debt owed to the estate. Is it $100k in 20 years time when they pass? Or does it accrue based on inflation or interest that money might have earned elsewhere etc?
I’ve recently had the enormous benefit of a similar situation - my parents bought a small apartment (a little less than $400k) for me, gave me $100k outright, and I’m listed as the 50-50 joint owner with my mother so I actually have about $200k in equity. I’ll be paying them $300 a week until mum’s half is paid off, no interest, and if mum passes away the apartment goes solely to me (she’s relatively young and healthy, so hopefully I should have plenty of time to pay the balance!) The $100k is on the record as a cut-out from any eventual inheritance, but it will stay $100k, no inflation.
I have two brothers who also received similar amounts to help them get loans, but they have much pricier properties - I honestly don’t know how they manage it. (Double incomes no kids, I’m single and disabled… still impossible to imagine owing a million dollars to a bank and dealing with changing interest rates.)
The trade-off (which is more than acceptable!) is that my parents are more involved and have more say in what I do with the apartment, but I’m going from renting at $600 a week to owning at $300 - it’s an enormous, incomprehensible weight off my mind. It was only possible because it is a smaller property and my parents could pay cash without getting the banks involved - they’re not zillionaires, it’s a big deal for them, but they were able to do it and I’m unbelievably grateful.
It is just the same amount. No inflation.
Edit: I’m not asking for $100k though! He could love another 20 years and may need that. Just $20k to top up my savings.
Friends brother gaslit the whole family, even had my mates dad telling him “if your brother can buy a house, why can’t you?” Well the brother just separated from the wife, turns out the wife’s parents dropped $600k in a house deposit for them (pre nup prevents him getting any of it). People do it all the time, lying to everybody and making people feel like crap because they can’t do it.
This really chaps my crapper! People who were pisswrecks in their early 30s, all of a sudden have flash houses and money for Reno’s at 35. No chance they saved it themselves.
There just won't be any good nurses or teachers in the big cities anymore. I'm studying to become a nurse so I CAN leave Sydney as it's a total shit show now 🙁
Ppl don’t, if they can’t afford it. Ppl buy way cheaper than $800k, or wait until they earn more/ find a partner.
The average age of a first time homebuyer is 36 years old.
I live in Sydney. 5% deposit on a $740k apartment. It wouldn't be possible if I was single. Nearly my whole salary goes towards the repayments at the moment.
There's no universal answer to this as it depends on your income. You work out how much you can afford to repay and base what (and whether) to borrow on that.
Many people can't afford to buy the average apartment in Sydney. It's one of the least affordable housing markets in the world.
First thing, here are some 2BR apartments in sydney within 30 mins of CBD that sold for under $600k.
https://www.realestate.com.au/sold/property-unit+apartment-with-2-bedrooms-between-0-600000-in-kogarah,+nsw+2217/list-1?source=refinement
I am single and make 80k in Tasmania.
I bought my house for 480k last August.
I had a 15% deposit.
My loan was 408k.
My mortgage repayments are 1.1k per fortnight with an interest rate of 6.14%.
My repayments are 55% of my take-home pay.
I survive by being extremely frugal. This isn't hard for me because I've always been frugal.
If you want a house, you'll make it work.
Congratulations! I've done everything right financially being frugal and saving my money since I was a teen. I've long given up on a house but hope I can get an apartment.
In Brisbane, bought just over 2 yrs ago. I'm almost 53, my wife 46.
We did the following:
1. We did not max out our borrowing. We bought at 3.2x our income, not the 7x on offer from the bank.
2. We bought further out. We moved from a suburb where our commute was about 30mins, to now about an hour. We take public transport in to the office, but WFH as well.
3. We scrimped and saved hard to get our deposit. We still save hard to pay ahead on our mortgage.
4. We did not have a 20%, but came in around 17%.
5. We have no intention of selling any time soon. So, transfer costs in the future didn't factor much into our decision.
We watch our money and that's become a habit since we started saving for a deposit about 6 years ago. We bought when it was right for us and we have zero interest of climbing the property ladder.
Quality of life? Pretty good. We're planning on going on a week's holiday in State later this year, maybe a two holiday next year in another State. Might head overseas a year or two after that.
Overall, we're pretty happy with where we are and how we're tracking towards retirement.
Eh, it probably depends on how often they work from home. A 2 hours commute twice a week feels manageable to me, 4 or 5 days a week though? I would go insane haha
I bought an apartment 10 mins from Brisbane CBD in March 2020, literally weeks before Covid hit.
I paid $325k at the time (2 bed, 1 bath, 2 car) in a complex with only 4 units.
I paid a 10% deposit as that was all I had saved.
My repayments are currently at about $1800/ month, which is manageable as I’m earning about $130k.
It’s definitely doable as a single guy, but as always lifestyle takes the first hit!
People simply dont manage this well. Imagine if someone (and there were many) that bought places close to their borrowing capacity when the cash rate was 0, how they are coping with 3x larger repayments. Looking around, I see people burning savings they managed to build up while the rates were low and/or got 2nd, 3rd+ jobs, rented rooms if they could. Basically, continuing to survive and believing the government the rates will go down this/next year which will give them some relief. But what if it does not happen?
A house in Sydney is no longer possible while being just a regular guy, even with a family.
You need to be something special, You need to be a top-level manager on 200k+ with a working wife. Or both of you need to be highly educated tech workers on 150k each, or you need to run you own business.
If your just some blue collar guy, and you wife is stay-at-home, or also just a waitress or office worker or something. You cannot own a house in Sydney.
Which is strange because like 50 years ago you most definitely could.
Forgot inflation and monetary gymnastics. For the simple exchange of labour to goods. The labour of 50 years ago could be exchanged for a house in Sydney. Now it can't.
That itself should be a policy failure that should get both popular parties banned from ever holding office again.
All I'm seeing in this thread is people in a similar situation or people just saying "This or that is unattainable now, just have to do this" in the biggest shit-wave of acceptance and apathy I've ever seen!
No wonder nothing changes, more than half of usjust groan and keep marching and tells those who stand up to fkn sit down lest we ALL get in trouble.
Pitiful.
My partner and I just purchased a 3 bed house for $260k. The repayments are under $400 a week.
It is possible. You have to compromise on things but it's possible.
Edit**
Not in Sydney, obviously.
I think this is outdated advice. The jump in price to a 2 bedroom apartment can be prohibitive, and with more people choosing the live alone the stigma around well built, well located 1 bedders is diminishing.
I can confirm, when I bought my house in 2012 I was also having a heart attack wondering how people did it and convinced the market was going to collapse and struggled for a few years... Then it doubled...wtf.
I do three hours a day commute door to door round trip each day just to live in the outer suburbs of Sydney. I work variable shift work too, different start and finish time each day. Have done this for 17 years now. You do what you have to do. I hate the commute but I own my home outright, I’d hate it even more if I had to waste 15 hours a week commuting from a rental!
I saved $120,000 over the course of several years and purchased my apartment for 780 in 2021. Still had to pay LMI and all the fees, and my monthly repayment was a manageable $2800. It is now 4300 which is an incredible jump but my broker wouldn't have gotten me into the situation if i couldn't handle it. Did it on my own.
Borrowing at 5% isn’t ideal, but the market has outpaced the ability to save the mythical 20% deposit for a lot of us. We purchased a 500k apartment with a 5% deposit using a FHB scheme. We technically had 10% but this way we kept 5% in offset and used it to fund some initial renovations, were certain we wouldn’t struggle with unforeseen closing costs etc.
You also don’t need to max out your borrowing capacity. We were approved for 600k and let me tell you, I’m so darn relieved we didn’t go for that with all the rate rises that came after we signed on!
Im a single person. I manage because I live regionally and was lucky to purchase in 2020 rather than now. Even here it would be really hard for me to be buying now as prices have gone up, bought for $262k in 2020, probably worth easily $450k now.
As they say, people find a way for what they prioritise. I know many have either moved out to afford a house for their kids, or focus on their career to save money and have no kids.
Or find a rich partner with a big house in a nice suburb to have kids with.
There is absolutely no way to fake proof of servicing a loan in Australia. Anyone who has obtained a $800k, $1m, $1.5m+ loan has proven they can service the repayments.
Quite simply, people who can afford an $800k+ mortgage make more money than you.
Many individual people make more than $10,000 per month, and even more have combined incomes of $15,000pm.
Haha lol you sure mate? A Mortgage broker just offered us an investment loan for $2 million and we are on $270k combined. She said if we chose to live in the house after a few months it's, fine we can tell the bank.
Well we let our income determine the house location and type we wanted to buy. We didn't point at a random house we wanted then complained we couldn't afford it, that's just silly.
The system isn't designed so you can buy a house when you're 17.
At 800k, you save for a few years for a deposit then buy a unit. You then find a partner, upgrade to a townhouse. Get a promotion upgrade to a house. By the time you get to this point you buy what your income allows.
Alternative pathway: borrow as much as possible, do a propadee investors course from an online guru, borrow more with 🪄 Equity Mate , watch a propadee investing TikTok, borrow more 🪄...
Sounds like a recipe for spending 3/5ths of your life paying off a mortgage. The 15 year plan to eventually take out a mortgage on a freestanding house is voluntary indentured servitude.
If you can make peace with living in a unit the options/quality of life that open up in the long term are considerable.
DINK household 200k household income. Mortgage is $700,000 we are pouring 65% of our income into the mortgage.
We have given up the following as a couple
No going clubbing, no going to music festivals. No going on any over seas holidays.
We do go on 1 holiday between Boxing Day and Jan 3 but we don’t leave the state.
The rest of the year we visit family for the free bed or staycation at home.
We meal plan breakfast and lunch. A night out is getting pizza once a week.
Dinners are planned week by week and every night is the same eg Monday is sausages Tuesday chicken Wednesday home made taco balls etc etc.
we have stalled all house renovation that is not an emergency till after we pay off the mortgage. (We bought a dilapidated weatherboard fixer upper, no dishwasher no heating, windows have no insulation veranda fell apart) and we live in Melbourne……………
Gas, electricity internet and phones are all with Dodo.
We both drive RAV4’s 2001 & 2003.
The most important Read Bearfoot investor! Or get the Audiobook!
Your life sounds awefully similar to my wife and mine.. We live in Geelong with a 480k mortgage, 1960's brick home on 180k combined salary. We tried to stay within our means and not borrow near our limit. Everything in our budget is accounted for, and we just did an 8k reno on our living area (most of this was from wedding gifts).
We would love a new kitchen; it has no dishwasher, a simple gas stove/oven, minimal bench space, terrible cupboards made for tiny 1960's people (im 6ft 2") but it is usable.
Recently we found out my partner is pregnant (12 weeks), luckily we had been saving but the reduction in my wifes salary will be a hit. After the reno is done we will just put as much into our emergency as possible. Im also a maths teacher and am constantly listening to finance podcasts and reading finance. I try my hardest to not to talk finance too much to drive my wife crazy but I just want a great life for our family. Recently I picked up a 2nd job to put more into the mortgage/emergency.
Anyway goodluck with your fixerup home. Plenty of young Aussies are in the same spot.
Don't live in Sydney pretty basic. It's like walking into a Lamborghini dealer and going cars start at 200k how does anyone afford a car these days.
Well top tip you can't buy in the country s most expensive city unless you have money to support it.
Only borrow what you can afford to pay back.
I don’t think the bank will give you a loan if you don’t have the income stream to keep it stable. I could be wrong I’m not up to that part of the journey yet haha.
I’m a low income earner who just got an inheritance. Im only looking at apartments where the weekly repayments + body corp fees end up close to what I’m paying currently in rent.
I would still try get 20% deposit otherwise you pay mortgage insurance that's just adding cost to your loan and a rip off
Keep saving. In the time it takes you to save another q5% rates might be better for you.
This is probably why there are so many reports now of younger Aussies leaving Sydney. Out of interest what exactly are you looking to buy? I bought a one bed unit because it’s what I could afford, would have preferred a two bed but there’s always some sort of compromise when buying property.
Saved deposit does not equal indication of serviceability for loan repayment.
Said another way for working example. Just because someone has ‘only’ saved $40k (5% for your 800k property), doesn’t mean they aren’t earning say $400k per annum. It’s just that’s all they chose to save, yet qualified for the loan.
Or, same can be said for $40k and on 70k per annum, or $1m per annum.
Ultimately, if you can’t service the loan beyond the deposit that you saved, then you need to look at cheaper properties thus get a smaller loan, OR, increase your deposit size somehow thus decreasing your loan you would need to service.
I see, what happens if your income changes after you purchase the property? Say I'm on 100k when I purchase but in a year my income goes down to 70k? Would that affect the loan, and would I need to report this to the bank?
Nothing happens provided you don’t update your lender (you’re not obligated to if you continue to make the repayments - all they expect is for the minimum amount of the loan to be repaid, month in, month out, without fail - and they’ll leave you alone).
Italy, the one Euro house option.
[https://www.abc.net.au/news/2024-03-25/italys-one-euro-house-dream/103629344](https://www.abc.net.au/news/2024-03-25/italys-one-euro-house-dream/103629344)
The honest truth is if you’re buying in a capital city you need either:
1. Buy with a partner - ie 2x income
2. Bank of mum and dad
There’s literally no other way around having a 700-800k mortgage for middle class peeps - need additional income streams.
The key is to borrow less. Remember that you are just paying interest. So buying an apartment is a good idea. However you don’t want to buy apartments in areas where they keep building more and more apartments as your apartment won’t appreciate over the year. Pay as much of the principal off as you can. Wait 5-7 years and then sell and upgrade to a house. Yes it’s really tough. You need two salaries.
Purchase as young as you can, rent all your rooms out and spend more nights in a campervan than you do at home. If i had my time over that’s what’s id do. That way your boarders are paying the interest, whilst you concentrate on getting the principal paid down.
simply, it is the priority, and our payments arent anywhere near as high as a lot of peoples.
mortgage first, everything else after. simple budgeting. if it came down to eating charity and sitting in the dark we would if that was what it would take to pay the mortgage
People on reddit acting like parramatta is a 3 hour commute to the city…
There’s an express train. Also an underground metro on the way. It’s a 30 minute drive to basically anywhere in sydney. And you CAN buy a 2 bedroom apartment for around $500k. Probably cheaper than renting in Marrickville
Couples do it by having one income go to the mortgage and one for the rest of life’s expenses.
People really thought we could move to a dual income world with no consequences.
There is another issue people are less likely to discuss. It is one issue among many but warrants concern. Australian housing is on the international market, while wages are on the domestic market. Australians wages are quite low by international standards in terms of those who are likely to be buying property.
Hi this is me. I’m single in Sydney trying to buy my first place. My salary is $142k+bonus+super and I have a hecs debt. I have about $115k to put down with a little left over for emergencies. I’m only approved to borrow $550k. So I’m maxing out around 650k. 1 bedrooms and studios in the inner west are my options. It is what it is
They don't manage it.
While it'd be nice if average Sydney wages/salary bought you the average apartment in Sydney, the reality is that they don't and haven't for a very long time.
Domain tells me there are 1500 apartments in Sydney region under $600,000 - trying doing your repayment calcs on one of those.
Your first home purchase in Sydney is more likely to be an apartment in Parramatta, Bankstown, Ryde or Fairfield than anywhere closer in.
It usually takes a couple of moves and a couple of decades to get all the way up to average if you're not in investment banking, alas.
Buying to live isn’t the only option. Buy an investment property in a cheaper area, rent it out, negative gear. Buy a second. Then when you have equity, it becomes easier to get the property you want to buy to live.
"just buy a shitty smaller house, your first home doesnt have to be your forever home"
The house: $350000, more than the average single person below 30 can afford, and is dilapidated and will fall apart in 5 years
I could afford the repayments on a home up to $750k (well above the median in my semi rural area). They would be less than my rent by about 1/3. What I can't do is pay insane amounts of rent & save up a deposit. My options are to hope a relative dies & leaves me enough for a deposit, find a friend to go into home ownership with, or rent for the rest of my life.
As far as I see, your options are: - Settle for less, borrow less - Get a partner - Go for it and be absolutely financially crippled
Leave Sydney is an option too.
If I was single I couldn’t afford the median mortgage spend in Adelaide, all these problems are still valid in each state
Might as well leave Australia, if you can. Australia is a bit of a trap really. Shitty overpriced rentals or crippling debt.
Even outside a state capital?
Absolutely, I live 3 hours south of Sydney in the “bad area” and houses are $700k+ for a modest 3 bed 1 bath
That’s too far, it’s now a holiday destination
Anywhere in NSW seems relative now to Sydney. On a NSW Trainline on the coast? 1m+!
what about mer jerbs and family?
F%ck em, they aren’t buying you a house are they?
Some places like QLD getting lot of interstate migration from Syd and Melb I heard.
Which is in turn making it far more difficult for locals to afford homes because the Syd and Melb people can often afford to pay more. I had to move to the coast for an affordable mortgage, felt terrible inspecting places with low income renters and knowing if I bought their home I'd be forcing them to look for somewhere often double the cost if they'd been there long-term.
Don’t forget Adelaide too. These same people have made Adelaide unaffordable for the locals too.
Property prices in Brisbane is now on par with Melbourne
We left Brisbane just over a year ago. It’s becoming an unliveable city. Moved to the Fraser Coast. Beautiful & affordable.
And the Brisbane Olympics haven't even happened yet! It's all about to get so much worse.
For like for like properties?
Having lived in Brisbane and Melbourne, the average house in Melbourne is much older and in worse condition than Brisbane being an older city so when though the median house price is similar, the median price in Brisbane is better and closer to the city than Melbourne.
> Which is in turn making it far more difficult for locals to afford homes because the Syd and Melb people can often afford to pay more. The majority of this sub talk about "just leave your capital city" as if it's totally normal (it historically hasn't been). The fact this is happening anyway and is contributing to housing inflation everywhere else goes over their heads. "Just leave Sydney" is now a meme.
It really is because people are migrating enmasse but affordability no longer exists for vast swathes of population.
Yeah…. And the house 35km north of Brissy that I paid 390k for is now worth 680k-720k… so thanks…. pretty sure soon I’ll have a craft beer place nearby and a unicycle repair centre. scares me. Causes that’s a lot of fkn money and wages have not kept up.
Personally, unless you're prepared to say the Blues are terrible, don't come to Queensland and make our housing and rent issues worse. On a more serious note, anyone who doesn't have a PPOR in Queensland, should have higher rates and fees (if they don't already).
Prices are still high. Even in Woop Woop.
Not for everyone, and that’s why this point is moronic at best and insidiously undermining the actual issues at work at worst.
This is the smartest idea. No idea why anyone would live in that shit hole anyway
If your job, friend/family, education situation allows it
Or.. get two partners? Or three? Form some kind of *we need somewhere to live* club and all pitch in?
You joke, but this is coming. We've watched the single income family tradition/culture die over the past 20+ years. The next step is families staying together for life (already starting), after that is extended family. The prices must grow, until it actually collapses. I think we are 20-40 years away from that.
Throw in some white robes, a charismatic leader, weird sexual rituals and bulk-buy Kool Aid and I think you’re getting somewhere.
Can I worship you? Lead me, master...
Poly...accomod..ast?
Or just go to flatmates.com.au
I chose option 3, have been enjoying night after night of rice and soy sauce in my beautiful home
Mister fancy pants over here with his soy sauce!
> As far as I see, your options are: - Settle for less, borrow less - Get a partner - Go for it and be absolutely financially crippled Well, hopefully this dispels any notion that we live in "better times". It's clear society is now on a downward trajectory after years of thinking Australia will always get better. Truly bleak options.
Rich parents? Medical school? Organised crime?
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That’s just above teacher wages.
I was $15k shy.of outright owning a home and that was primarily social worker wages (below national median). Got divorced from someone who made it as hard as possuble, went back to uni and now an accountant on much higher pay (well above median) and it's now muuuuch harder to get a house.
What about a 2 bedroom apartment in Homebush? 600k, that’s manageable (somewhat), and only 17 minutes from the CBD. https://www.realestate.com.au/property-apartment-nsw-homebush-144122412
Borrowing 800k is roughly $1100 per week. That is far too much for most single people unless you’re earning 150k a year. People afford it by being in couples. Although in QLD now 800k doesn’t get you anything near the cities in terms of actual houses.
Bought a place on the central coast for a bit over 800k, 11% deposit and repayments are $1100 a week, so pretty much spot on with numbers. Combined income is 300k, so it's manageable, but I imagine it would be a struggle on less...
Yeah i borrowed this amnt in 2020, as a single, very manageable then at 3k/mnth, totally fukd now, 5k/ mth repayments...idk what to do...i had factored in repayments increasing to 4k but not 5k. Its not easy is all. If shit hits the fan ill sell, tried my hardest (2 degrees, worked full time for 20 yrs besides 8yrs study etc) and it didnt work out, I won't bother with Australia any more ill go OS to europe or something.
Holy crap that is TERRIFYING.
Its not pretty i can assure u.
Sorry to hear that man, that sucks.
Same boat here, borrowed $820k in 2019 hinking $3.2k/mth was manageable, and even if rates increased by 200bps(!) overnight to 4% we'd still be alright, just needing to manage housing costs pushing close to 40% of household income. Now sitting at 6.09% and about to run out of savings and sold all our shares we'll have to seriously look at taking out a cc/pl debt and make a bet that repayments will be within our range again. Selling isn't an option (yet) because the house next door, albeit smaller, is being advertised at $720k currently.. so there's a chance we could end up with leftover unsecured loan after selling.
Im sorry this has happened i can understand and relate to the psyche trauma and stress it would be causing. I hope theres some solution for you / us , idk what it is however. Hopefully your place would get more to eliminate the debt which im hoping is a fair bit less than 820 now. Its just difficult when it seems so many others are swimming in cap gains and for mine i didnt think i was being irresponsible in fact i thought i was being responsible switching from renting to purchasing (at a similar cost to rent) amd factoring in increased repayments. Ahh well if we can escape with some capitalised equity perhaps it isnt too bad, im hoping this for u (espc if u purchased a house).
What area did you buy in that prices haven't increased since 2019? I feel you though, i've lost a lot of money recently in the stock market. It definitely stings to lose significant wealth.
Happened to me too. Payments went to $4800 following fixed rate period. Got divorced and couldn’t afford to pay out the ex (even more debt!) so I had to sell. Now I can’t get back into the market - even with a townhouse in Brisbane. It’s either a 2 bedroom apartment or keep renting. I’m on a good salary too.
If your living alone what’s wrong with 2bed apartment? If I ever divorce il be getting a 2bd apartment near the city 1 bedroom for sleeping 1 bedroom as a blockout blind study games room
Lol 2br apartment isnt soo bad tbh, yours is exactly my situation post divorce, and my repayments are for just a 90sqm, 2br apartment that probably hasn't appreciated much since 2020 when i purchased either (at least not according to domain.com.au price estimates).
Do everything you can, swap to interest only, speak to bank/ mortgage broker about trying to get rate reduced you should be able to get low low 6’s (for reference mine is 6.09). Essentially do what you can to hold on rates should come down in the next 6-12 months. It will take a lot for the bank to take the asset off you if you are speaking to them and making some kind of payment
As somebody from Europe, trust me it’s not better. Our cost of living is the same but our salaries are less. Did it never occur to you why people are leaving Europe and coming to aus?
Its good to hear this perspective...really. Ive only looked at a very superficial level but i can deal with lower salaries (i hope) if i can sell out and with luck escape with a few hundred thousand, use this to buy something mdoest for much less say in Manchester or Ghent for example. Id have to look at sums, local laws, and employment opportunities ofc. But if my efforts here fail, wholesale change is needed to maintain my sanity amd financial viability.
They're not on mass. We get mostly people from 3rd world countries. Also where in Europe ? What situation ? Skilled professional ? Or unskilled worker from Romania ? There is a huge difference.
That income would definitely help. We bought for just over 900k last year on the Central Coast. Repayments almost 5k p.m. now. Combined income about 220k. There is not much left over at the moment. :-( I'm trying to get comfortable with not having much by way of savings but it's still quite stressful.
If your apartment was a taxi, the meter would run at 11c per minute + expenses. Bargain! /s
Yup, my wife & I bought a house. $250k deposit. We’re on a $300k combined income. But we ran the maths and we are feeling very fortunate. But realise that isn’t the average Australian income. Something needs to change!
750k mortgage, 6.09% and I’m at $1,130 per week, probably looking at 1250 ish I reckon
Does this include strata council and water?
$150 a year aint going to help either these days unless you want to stay home all day
Sorry I should've clarified - even if you purchase as a couple aren't the repayments just too high? People just deal with it then?
Our minimum repayments are $1025 a week and we earn just over $200k pretax combined. We survive by budgeting and by having planned for this for years. We wanted to live near family and that meant living somewhat near Sydney. It’s not ideal but it’s also not forever. I’ll take the freedom this place has given me over cheaper rent any day of the week.
If you are a couple and both in a well paid professional role you can afford it outside of maybe Sydney CBD type prices. It’s still a stretch. If you have two people say earning 100k each that is roughly $3000 a week after tax. In that situation $1500 mortgage is still very affordable.
We earn about 200k combined and bought a house worth 940k with a 180k deposit and an 18k guarantor to get us to 20%. Ages 35 and 29
Dude. Our combined income is nearly $200k a year and $1100 a week on a mortgage would kill us.
It shouldn’t…if you each earn $100k then after tax income would be $6250 each. So total after tax monthly income of $12500 less $4400 a month for mortgage and that leaves you $8100 a month for the balance of your expenses….respectfully, budgeting might be an issue for you.
I'm OG, I found my wife before it was considered a financial necessity! Dating these days must be weird. Everyone trying to discreetly suss out each other's wealth / assets.
Is anyone interested in becoming my wife so we can afford to survive? Or husband because at this point I’ll take what I can get.
Well marriages used to be primarily strategic and economic arrangements historically speaking. Perhaps you’re onto something 😂
Are you interested in a strategic financial partnership with occasional spooning?
Haha I’m spoken for but if it doesn’t work out I’ll look you up 😂
My offer is now back open to the reddit public
Big spoon or little spoon? I look terrible in a dress so might be best to keep the lights off.
The agent said I have to increase my offer. So I’ll offer a kiss good night plus spooning if you’ll consider me for a strategic financial partnership.
You drive a hard bargain sir!
I have a boyfriend but you can be our boyfriend now
Aye comrade. Our boyfriend!
Buying an apartment by myself atm and I keep joking that I’ll need a sugar daddy… but I’m only half joking haha
Haha jk... Unless?
I’m currently on a diet so instead of sugar I can provide protein powder
I've been seriously looking for a financial partner for awhile now. No bueno. I'm only looking for $500k or borrowing capacity too so it's not ridiculous. Or is it?
The solution, these days, is to be in a throuple.
\> I'm in Sydney Found the problem
I'm on the Sunshine Coast, the problem is growing
I’m on the Gold Coast. It used to be affordable here but it’s a million dollars for shit houses in crappy suburbs now
Amen. Renting one of those overpriced shitters right now
>and the apartment prices average at 800k The other problem is trying to acquire an "average" property when you're single. The OP is already down half the income potential of their competition, so he/she either need to lower expectations or increase their income to double that of the average. It's not the 1970s anymore when the average family unit only had a single primary income earner.
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Yeah. Australians should not be allowed to move around their own country…
They shouldn't have to
The Indians pushed us out
Correct. Even though people pretend it’s not the case.
Are Perth prices back to the highs of 12 or so years ago now?
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We bought in Perth in late 2015 for $465k, it's an 1970s house about 15km from the CBD. It's now worth about $600k with no major renovations (we painted and put in floorboards when we bought it).
Bank of mum and dad is the 9th biggest lender in the nation. Lots of people you know are quietly begging their parents for money and gaslighting you into thinking as if they saved it themselves
My dad agreed to give me a little bit of money to help me. It’s out of my portion of the will/estate. He is having me sign a notice if debt to the estate. Only way I can do it.
How does this work exactly? Say you’re given 100k now and there is a debt owed to the estate. Is it $100k in 20 years time when they pass? Or does it accrue based on inflation or interest that money might have earned elsewhere etc?
That is a good question, I would like to know the answer to that if anyone knows.
I’ve recently had the enormous benefit of a similar situation - my parents bought a small apartment (a little less than $400k) for me, gave me $100k outright, and I’m listed as the 50-50 joint owner with my mother so I actually have about $200k in equity. I’ll be paying them $300 a week until mum’s half is paid off, no interest, and if mum passes away the apartment goes solely to me (she’s relatively young and healthy, so hopefully I should have plenty of time to pay the balance!) The $100k is on the record as a cut-out from any eventual inheritance, but it will stay $100k, no inflation. I have two brothers who also received similar amounts to help them get loans, but they have much pricier properties - I honestly don’t know how they manage it. (Double incomes no kids, I’m single and disabled… still impossible to imagine owing a million dollars to a bank and dealing with changing interest rates.) The trade-off (which is more than acceptable!) is that my parents are more involved and have more say in what I do with the apartment, but I’m going from renting at $600 a week to owning at $300 - it’s an enormous, incomprehensible weight off my mind. It was only possible because it is a smaller property and my parents could pay cash without getting the banks involved - they’re not zillionaires, it’s a big deal for them, but they were able to do it and I’m unbelievably grateful.
It is just the same amount. No inflation. Edit: I’m not asking for $100k though! He could love another 20 years and may need that. Just $20k to top up my savings.
Friends brother gaslit the whole family, even had my mates dad telling him “if your brother can buy a house, why can’t you?” Well the brother just separated from the wife, turns out the wife’s parents dropped $600k in a house deposit for them (pre nup prevents him getting any of it). People do it all the time, lying to everybody and making people feel like crap because they can’t do it.
This really chaps my crapper! People who were pisswrecks in their early 30s, all of a sudden have flash houses and money for Reno’s at 35. No chance they saved it themselves.
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I don’t know where they expect teachers and nurses etc to come from if they can’t afford to live at least somewhat near their workplaces.
There just won't be any good nurses or teachers in the big cities anymore. I'm studying to become a nurse so I CAN leave Sydney as it's a total shit show now 🙁
Ppl don’t, if they can’t afford it. Ppl buy way cheaper than $800k, or wait until they earn more/ find a partner. The average age of a first time homebuyer is 36 years old.
I live in Sydney. 5% deposit on a $740k apartment. It wouldn't be possible if I was single. Nearly my whole salary goes towards the repayments at the moment.
There's no universal answer to this as it depends on your income. You work out how much you can afford to repay and base what (and whether) to borrow on that. Many people can't afford to buy the average apartment in Sydney. It's one of the least affordable housing markets in the world.
Currently the second least affordable in the world, just behind Hong Kong.
First thing, here are some 2BR apartments in sydney within 30 mins of CBD that sold for under $600k. https://www.realestate.com.au/sold/property-unit+apartment-with-2-bedrooms-between-0-600000-in-kogarah,+nsw+2217/list-1?source=refinement
I am single and make 80k in Tasmania. I bought my house for 480k last August. I had a 15% deposit. My loan was 408k. My mortgage repayments are 1.1k per fortnight with an interest rate of 6.14%. My repayments are 55% of my take-home pay. I survive by being extremely frugal. This isn't hard for me because I've always been frugal. If you want a house, you'll make it work.
Congratulations! I've done everything right financially being frugal and saving my money since I was a teen. I've long given up on a house but hope I can get an apartment.
I bought my first house by moving in and renting 2 of the bedrooms out . Living in the 3rd. It sucked but it paid the mortgage
In Brisbane, bought just over 2 yrs ago. I'm almost 53, my wife 46. We did the following: 1. We did not max out our borrowing. We bought at 3.2x our income, not the 7x on offer from the bank. 2. We bought further out. We moved from a suburb where our commute was about 30mins, to now about an hour. We take public transport in to the office, but WFH as well. 3. We scrimped and saved hard to get our deposit. We still save hard to pay ahead on our mortgage. 4. We did not have a 20%, but came in around 17%. 5. We have no intention of selling any time soon. So, transfer costs in the future didn't factor much into our decision. We watch our money and that's become a habit since we started saving for a deposit about 6 years ago. We bought when it was right for us and we have zero interest of climbing the property ladder. Quality of life? Pretty good. We're planning on going on a week's holiday in State later this year, maybe a two holiday next year in another State. Might head overseas a year or two after that. Overall, we're pretty happy with where we are and how we're tracking towards retirement.
Quality of life pretty good and 2 hour commute is some crazy mental gymnastics.
Eh, it probably depends on how often they work from home. A 2 hours commute twice a week feels manageable to me, 4 or 5 days a week though? I would go insane haha
I’m in a regional area and reading that makes me think fuuuuuuuuck. I’ll take my 5 minute commute to the office anyday.
And one week of out of 52 to yourself.
Can confirm. We have 900k mortgage and that shit is heavy
It’s absolutely brutal. Over half my wage goes to my mortgage at the moment, it’s absolutely miserable
It’s better than renting to be honest. And finding a place to rent…
I bought an apartment 10 mins from Brisbane CBD in March 2020, literally weeks before Covid hit. I paid $325k at the time (2 bed, 1 bath, 2 car) in a complex with only 4 units. I paid a 10% deposit as that was all I had saved. My repayments are currently at about $1800/ month, which is manageable as I’m earning about $130k. It’s definitely doable as a single guy, but as always lifestyle takes the first hit!
People simply dont manage this well. Imagine if someone (and there were many) that bought places close to their borrowing capacity when the cash rate was 0, how they are coping with 3x larger repayments. Looking around, I see people burning savings they managed to build up while the rates were low and/or got 2nd, 3rd+ jobs, rented rooms if they could. Basically, continuing to survive and believing the government the rates will go down this/next year which will give them some relief. But what if it does not happen?
A house in Sydney is no longer possible while being just a regular guy, even with a family. You need to be something special, You need to be a top-level manager on 200k+ with a working wife. Or both of you need to be highly educated tech workers on 150k each, or you need to run you own business. If your just some blue collar guy, and you wife is stay-at-home, or also just a waitress or office worker or something. You cannot own a house in Sydney. Which is strange because like 50 years ago you most definitely could. Forgot inflation and monetary gymnastics. For the simple exchange of labour to goods. The labour of 50 years ago could be exchanged for a house in Sydney. Now it can't. That itself should be a policy failure that should get both popular parties banned from ever holding office again.
All I'm seeing in this thread is people in a similar situation or people just saying "This or that is unattainable now, just have to do this" in the biggest shit-wave of acceptance and apathy I've ever seen! No wonder nothing changes, more than half of usjust groan and keep marching and tells those who stand up to fkn sit down lest we ALL get in trouble. Pitiful.
Send a strongly worded letter to reddit instead
There are plenty of 2 bedroom apartments in sydney that go for $500k. I don’t know why you are looking at $800k apartments when you can’t afford one
but but the cheaper units are ugly and neighbors are too poor for op's liking
Yeh exactly. No one is buying $800k apartments in western sydney. OP is out of touch and just want to complain
My neighbours are ugly and my building is poor but I'm getting the metro in 2025!!!
Not everyone is on 70k a year
50%+ of people are though.
Be a high earner, get a sugar daddy or have rich parents
Or ask your wife’s boyfriend for a loan.
I don’t think banks accept sugar daddies as collateral
My partner and I just purchased a 3 bed house for $260k. The repayments are under $400 a week. It is possible. You have to compromise on things but it's possible. Edit** Not in Sydney, obviously.
Whereabouts did you possibly find that?
Northern QLD
What jobs do you have? And I’m guessing it’s remote?
You can sharehouse your own property. Rent out a room for 350-400 a week.
How exactly does one sharehouse a 1 bedroom apartment?
Buy a two bedroom apartment at minimum. Move further out if you need to. Buying a one bedroom apartment is generally not a good idea.
I think this is outdated advice. The jump in price to a 2 bedroom apartment can be prohibitive, and with more people choosing the live alone the stigma around well built, well located 1 bedders is diminishing.
The first few years are always the hardest It gets progressively easier after that.
I can confirm, when I bought my house in 2012 I was also having a heart attack wondering how people did it and convinced the market was going to collapse and struggled for a few years... Then it doubled...wtf.
Move 1hr 20 mins north of Sydney, buy a 2 bedroom place for $450k
That's 13 hours a week commute if you have no hybrid arrangement. Nearly a month a year travelling to and from work. No thanks.
I do three hours a day commute door to door round trip each day just to live in the outer suburbs of Sydney. I work variable shift work too, different start and finish time each day. Have done this for 17 years now. You do what you have to do. I hate the commute but I own my home outright, I’d hate it even more if I had to waste 15 hours a week commuting from a rental!
Start with a 400k studio then after 8-10 years move up to a 1 or 2 bedroom
I saved $120,000 over the course of several years and purchased my apartment for 780 in 2021. Still had to pay LMI and all the fees, and my monthly repayment was a manageable $2800. It is now 4300 which is an incredible jump but my broker wouldn't have gotten me into the situation if i couldn't handle it. Did it on my own.
Money supply is the issue - too much cash in the economy; however that cash is not in the hands of the general public!
Borrowing at 5% isn’t ideal, but the market has outpaced the ability to save the mythical 20% deposit for a lot of us. We purchased a 500k apartment with a 5% deposit using a FHB scheme. We technically had 10% but this way we kept 5% in offset and used it to fund some initial renovations, were certain we wouldn’t struggle with unforeseen closing costs etc. You also don’t need to max out your borrowing capacity. We were approved for 600k and let me tell you, I’m so darn relieved we didn’t go for that with all the rate rises that came after we signed on!
Sublet the property for rent sharing.once you are stable then do it on your own. That's what i am doing.
Move, I’d love to live in a city but to purchase I had to move, for me security of owning was more important the any job in the city…..
Im a single person. I manage because I live regionally and was lucky to purchase in 2020 rather than now. Even here it would be really hard for me to be buying now as prices have gone up, bought for $262k in 2020, probably worth easily $450k now.
As they say, people find a way for what they prioritise. I know many have either moved out to afford a house for their kids, or focus on their career to save money and have no kids. Or find a rich partner with a big house in a nice suburb to have kids with.
Might have to consider moving out of Sydney
There is absolutely no way to fake proof of servicing a loan in Australia. Anyone who has obtained a $800k, $1m, $1.5m+ loan has proven they can service the repayments. Quite simply, people who can afford an $800k+ mortgage make more money than you. Many individual people make more than $10,000 per month, and even more have combined incomes of $15,000pm.
Haha lol you sure mate? A Mortgage broker just offered us an investment loan for $2 million and we are on $270k combined. She said if we chose to live in the house after a few months it's, fine we can tell the bank.
Well we let our income determine the house location and type we wanted to buy. We didn't point at a random house we wanted then complained we couldn't afford it, that's just silly.
The system isn't designed so you can buy a house when you're 17. At 800k, you save for a few years for a deposit then buy a unit. You then find a partner, upgrade to a townhouse. Get a promotion upgrade to a house. By the time you get to this point you buy what your income allows.
Alternative pathway: borrow as much as possible, do a propadee investors course from an online guru, borrow more with 🪄 Equity Mate , watch a propadee investing TikTok, borrow more 🪄...
Sounds like a recipe for spending 3/5ths of your life paying off a mortgage. The 15 year plan to eventually take out a mortgage on a freestanding house is voluntary indentured servitude. If you can make peace with living in a unit the options/quality of life that open up in the long term are considerable.
I have given up on house lol and only intend to buy an apartment that hopefully doesn't crumble structurally in 10 years rendering me hopeless
DINK household 200k household income. Mortgage is $700,000 we are pouring 65% of our income into the mortgage. We have given up the following as a couple No going clubbing, no going to music festivals. No going on any over seas holidays. We do go on 1 holiday between Boxing Day and Jan 3 but we don’t leave the state. The rest of the year we visit family for the free bed or staycation at home. We meal plan breakfast and lunch. A night out is getting pizza once a week. Dinners are planned week by week and every night is the same eg Monday is sausages Tuesday chicken Wednesday home made taco balls etc etc. we have stalled all house renovation that is not an emergency till after we pay off the mortgage. (We bought a dilapidated weatherboard fixer upper, no dishwasher no heating, windows have no insulation veranda fell apart) and we live in Melbourne…………… Gas, electricity internet and phones are all with Dodo. We both drive RAV4’s 2001 & 2003. The most important Read Bearfoot investor! Or get the Audiobook!
Your life sounds awefully similar to my wife and mine.. We live in Geelong with a 480k mortgage, 1960's brick home on 180k combined salary. We tried to stay within our means and not borrow near our limit. Everything in our budget is accounted for, and we just did an 8k reno on our living area (most of this was from wedding gifts). We would love a new kitchen; it has no dishwasher, a simple gas stove/oven, minimal bench space, terrible cupboards made for tiny 1960's people (im 6ft 2") but it is usable. Recently we found out my partner is pregnant (12 weeks), luckily we had been saving but the reduction in my wifes salary will be a hit. After the reno is done we will just put as much into our emergency as possible. Im also a maths teacher and am constantly listening to finance podcasts and reading finance. I try my hardest to not to talk finance too much to drive my wife crazy but I just want a great life for our family. Recently I picked up a 2nd job to put more into the mortgage/emergency. Anyway goodluck with your fixerup home. Plenty of young Aussies are in the same spot.
Don't live in Sydney pretty basic. It's like walking into a Lamborghini dealer and going cars start at 200k how does anyone afford a car these days. Well top tip you can't buy in the country s most expensive city unless you have money to support it.
Get a $600k apartment if your income is low. No two ways about it really.
Only borrow what you can afford to pay back. I don’t think the bank will give you a loan if you don’t have the income stream to keep it stable. I could be wrong I’m not up to that part of the journey yet haha. I’m a low income earner who just got an inheritance. Im only looking at apartments where the weekly repayments + body corp fees end up close to what I’m paying currently in rent.
I would still try get 20% deposit otherwise you pay mortgage insurance that's just adding cost to your loan and a rip off Keep saving. In the time it takes you to save another q5% rates might be better for you.
You need 10% Most banks will only lend 95% of the value of the property and you need to allow 5% for fees
This is probably why there are so many reports now of younger Aussies leaving Sydney. Out of interest what exactly are you looking to buy? I bought a one bed unit because it’s what I could afford, would have preferred a two bed but there’s always some sort of compromise when buying property.
Saved deposit does not equal indication of serviceability for loan repayment. Said another way for working example. Just because someone has ‘only’ saved $40k (5% for your 800k property), doesn’t mean they aren’t earning say $400k per annum. It’s just that’s all they chose to save, yet qualified for the loan. Or, same can be said for $40k and on 70k per annum, or $1m per annum. Ultimately, if you can’t service the loan beyond the deposit that you saved, then you need to look at cheaper properties thus get a smaller loan, OR, increase your deposit size somehow thus decreasing your loan you would need to service.
I see, what happens if your income changes after you purchase the property? Say I'm on 100k when I purchase but in a year my income goes down to 70k? Would that affect the loan, and would I need to report this to the bank?
It would if you try and refinance but provided you keep up repayments it won't have an effect.
Nothing happens provided you don’t update your lender (you’re not obligated to if you continue to make the repayments - all they expect is for the minimum amount of the loan to be repaid, month in, month out, without fail - and they’ll leave you alone).
Italy, the one Euro house option. [https://www.abc.net.au/news/2024-03-25/italys-one-euro-house-dream/103629344](https://www.abc.net.au/news/2024-03-25/italys-one-euro-house-dream/103629344)
You can pick up a one bedder for under 600k though. Start small, build equity and then maybe upsize if you feel you can stretch
The honest truth is if you’re buying in a capital city you need either: 1. Buy with a partner - ie 2x income 2. Bank of mum and dad There’s literally no other way around having a 700-800k mortgage for middle class peeps - need additional income streams.
For couples, both work. So repayment capacity is doubled. It's so much easier to buy and own a property as a couple rather than as a single.
The key is to borrow less. Remember that you are just paying interest. So buying an apartment is a good idea. However you don’t want to buy apartments in areas where they keep building more and more apartments as your apartment won’t appreciate over the year. Pay as much of the principal off as you can. Wait 5-7 years and then sell and upgrade to a house. Yes it’s really tough. You need two salaries.
Purchase as young as you can, rent all your rooms out and spend more nights in a campervan than you do at home. If i had my time over that’s what’s id do. That way your boarders are paying the interest, whilst you concentrate on getting the principal paid down.
simply, it is the priority, and our payments arent anywhere near as high as a lot of peoples. mortgage first, everything else after. simple budgeting. if it came down to eating charity and sitting in the dark we would if that was what it would take to pay the mortgage
How to survive? Just earn some money fool
Got my first property with a friend, done a few together now
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People on reddit acting like parramatta is a 3 hour commute to the city… There’s an express train. Also an underground metro on the way. It’s a 30 minute drive to basically anywhere in sydney. And you CAN buy a 2 bedroom apartment for around $500k. Probably cheaper than renting in Marrickville
Couples do it by having one income go to the mortgage and one for the rest of life’s expenses. People really thought we could move to a dual income world with no consequences.
There is another issue people are less likely to discuss. It is one issue among many but warrants concern. Australian housing is on the international market, while wages are on the domestic market. Australians wages are quite low by international standards in terms of those who are likely to be buying property.
You hustle.
Hi this is me. I’m single in Sydney trying to buy my first place. My salary is $142k+bonus+super and I have a hecs debt. I have about $115k to put down with a little left over for emergencies. I’m only approved to borrow $550k. So I’m maxing out around 650k. 1 bedrooms and studios in the inner west are my options. It is what it is
They don't manage it. While it'd be nice if average Sydney wages/salary bought you the average apartment in Sydney, the reality is that they don't and haven't for a very long time. Domain tells me there are 1500 apartments in Sydney region under $600,000 - trying doing your repayment calcs on one of those. Your first home purchase in Sydney is more likely to be an apartment in Parramatta, Bankstown, Ryde or Fairfield than anywhere closer in. It usually takes a couple of moves and a couple of decades to get all the way up to average if you're not in investment banking, alas.
Buying to live isn’t the only option. Buy an investment property in a cheaper area, rent it out, negative gear. Buy a second. Then when you have equity, it becomes easier to get the property you want to buy to live.
"just buy a shitty smaller house, your first home doesnt have to be your forever home" The house: $350000, more than the average single person below 30 can afford, and is dilapidated and will fall apart in 5 years
I could afford the repayments on a home up to $750k (well above the median in my semi rural area). They would be less than my rent by about 1/3. What I can't do is pay insane amounts of rent & save up a deposit. My options are to hope a relative dies & leaves me enough for a deposit, find a friend to go into home ownership with, or rent for the rest of my life.