First homebuyers need up to 18 years to save a deposit in some parts of Sydney
By - mrp61
Newcastle and Wollongong to Sydney fast trains would be a game changer. Needs to happen
I’ve been looking to get out of Sydney and Newcastle has been my top option, but even there prices are getting out of hand. They seem to have gone up by hundreds of thousands just in recent months
Imagine the prices if you could get a train to Sydney in 30 mins!
I live on the Central Coast and my house has doubled in value since buying in 2017, and that's not even taking into account any of the remodelling we've done. It's legitimately out of fucking control.
Saw that project on Utopia.
I miss the activated streetscapes and the nulla nulla remembrance walk with aboriginal motifs and materiality.
Carnsten really sold it.
0 Months Old - Give birth
3-6 Months Old - Sign them up for private school waiting list
Also 3-6 Months Old - Foster a healthy yet fearful respect for the domestic housing market. Remind them the bubble is set to burst “any day now”
6-7 Months Old - Encourage them to start saving so they might have a chance to buy a home one day
You’ve got to get them started young. No childhood for you!
Avocado toast doesn’t grow on trees, you know
Oh wait… they do! Then why the heck are they so expensive?
There is literally an oversupply of avocado's and they are ridiculously cheap currently?
As you can see over all the markets they track prices are at least 50% marked down in every state. They are very cheap at the moment
Don't be ridiculous. Who here can afford that $1.50 for the avocado at Alcolesworth? Gotta put that buckfiddy into VDHG.
The general vibe. It’s not cheap.
Thats leaving it very late - need to start the minute they're conceived.
Should come with a pamphlet at the hospital or a baby superannuation scheme to help them get on the housing market :D
Now that Dollarmites is in the dustpan, maybe there’s a market for Supermites?
Buy an apartment instead of the house. Problem solved. If you want the house in Artarmon, then you need to have income in top 1%.
This is my plan, buy an apartment first then upgrade later. This housing market has pushed me to decide I need to do delivery driving as my parents can't go guarantor. Will hopefully upgrade to a 3bdrm townhouse eventually.
So full-time work and full-time uni during the semester - in uni holidays it'll be - full-time job and delivery driving. :)
I used to think this was an option. Bought a small, crappy house in ~2011. Figured I'd be upgrading at some point - no worries, pay will increase and mortgage will get paid down. Just gotta get on the ladder - right? Next rung up on the housing ladder at the time was probably 150-200k but that would have been uncomfortable financially (rates were about 6% or so).
10 years later, house is still a piece of shit but has doubled in value. Next rung up the ladder is now about 800k-1mil to get a less shit house in a slightly worse area. Or a nice house in a distant land with 1 hour work commute. "Property ladder" my arse. Ladders don't have rungs that get further apart faster than you can climb.
Whatever level you start at on the ladder is where you will likely stay. You can downgrade but going up will cost you your financial freedom.
Sure, rates have come down, but you'll be paying off principal until heat death of the universe. Owning anything at all is a privileged position to be in, but it really doesn't feel all that liberating to be stuck in the middle.
I think at that point I’d be willing to buy properties in another state tbh (even overseas). I’m not willing to be trapped in a rental market which often lacks stability with no fallback.
It really depends on the area you’re buying in. I’ll be looking outwards towards west (preferably north west then towards new airport ) especially in suburbs where there is significant growth potential along the lines of existing and future metro lines. Prices might be comparable to inner west apartments but growth potential is higher. More importantly, these are areas with new infrastructure and fresh mix of people, so you can try creating community you like.
Also, don’t follow advices of randos from reddit without checking suburb you’re planning to buy in.
Check transport NSW plans in that area, check local council projects, the suburb profile on domain and investments in the area. Even if not accurate, that can give you brief idea where your suburb will be in few years.
I have to admit it’s worth it for peace of mind alone. No rental inspections, shitty landlords, etc. As long as you buy within your means. Calculate how much you can afford and don’t just go with what the bank will allow you to borrow. The first year was hard but now I barely notice my mortgage. But I did have to compromise on what I wanted to get there
Thanks! Will defs be getting something decent within my price range and what I can afford. I think owning and getting on the ladder is worthwhile as you can always rent somewhere else later on. Also so much peace of mind and stability honestly from not being evicted, having the possibility to own the asset and do what you like! Good luck :)
what’s to say an apartment will even appreciate in value? isn’t there an oversupply of apartments at the moment anyway?
The state of Apartment construction has me worried. Mascot Tower, Opal Tower and new building in Parramata all declared unsafe to live.
good luck finding a 4bedroom apartment
Or buy a cheap house / apartment and upgrade over time like everyone else….
There is no cheap house anymore
There are plenty around, just not close to the CBD. There is nothing wrong with owning an older apartment as a first home however, it’s where I started and it got me on the ladder.
Western Sydney in an apartment for a young surgeon, for example. You think a young professional should live in Liverpool for exam plle where people get stabbed on the reg and the apartment you buy is probably going to need a heap of repairs if old, or breakdown and die if post 2000?
Yes that sounds like a great deal for our successful hardworking young people.
Get a grip.
You probably aren't a surgeon and you probably didn't buy yesterday. Which is why that arrangement seems like an alright deal to you
Anyone who bought before this recent kickoff just doesn't get it, and it's not really comparable. If only those who did it would realize their circumstance is not the same and their advice is already very well understood, but useless.
Apartments as a first home are a sin. No bank will lend off of one for say, an investment property. The initial equity really needs to be in land. And if you think people can move up from an apartment to a house in 2021, you are mistaken - prices move too quick and even current homeowners are stuck where they are, unable to upgrade.
Why would a surgeon be living in an apartment in Liverpool where prices are around 400-500k. A young surgeon can borrow at least 600k easily, probably more.
You could even live in glebe at that range.
Ah yes, the very achievable 150k deposit /s
There is a point where it is worth asking ourselves “Is this game really worth playing?”
Well this article is clickbait and about buying in an affluent "keeping up with the Joneses" suburb, and the answer is no. You shouldn't play that game.
Firstly they need 3+ years of tertiary education to commence savings then 30 years to pay it off.
Guess working until 70 is the new normal then.
They will announce 50 year mortgages any day now.
50 year mortgages do make a lot more sense now than they did in the past (because our interest rates are so low now). The limits on the working life of most people does throw a bit of a spanner in the works though
I don't think people want to retire in their 80's, but I could be wrong on that one.
If you have enough in your super then you can retire at 68 and still afford that mortgage in your 80s.
Do I need a sarcasm tag?
Super at 60
Yeah you can draw it at 60. Just make sure it’s a decent balance, or take up smoking so you don’t live too long.
Your kids take on the debt when you die.
Unlike the boomers of course, the last generation to benefit from intergenerational wealth, and they’re out doing their best to spend gen x’s inheritance.
We’re screwed basically.
There comes a point where Sydney just isn't worth the sacrifices, even for the western suburbs. I personally don't see the point in working until 70 to buy a rubbish two bedroom apartment in Rooty Hill, which even out there a basic place is 500k or more. I wish it was different, but with how things are the only honest advice a lot of younger people can be given is don't bother.
Definitely. The not worth it train left almost a decade ago 🚂
But the RSL.
Have you seen the beaches though? Top 10 liveable city!
3+ years? Try 6+.
No employer worth their salt is going to hire a dumbdumb university graduate with a *Bachelor’s Degree*.
Come back to me when you have a Masters!
Graduate role? Need 4 years experience please
Good luck repaying your student debt on your zero dollars a year salary plus benefits babe!
The problem is that you’re saying it’s acceptable that the two largest cities in Australia comprising 40% of the population being completely inaccessible to home ownership for over half the population.
There are a lot of jobs that only have openings in major cities.
Idiotic comment. The only fucks that make comment like this are ones who already have a home. “Agh well if it’s expensive then go move out of a major city where your whole life is” fuck you. No one is suggesting they buy in Bondi. But when dog shit homes are going for 1 million in basic suburbs it’s not that easy champion.
Great advise, could you tell me where I can find the non expensive location that also has employment prospects which will mean I can service the loan? Because I have found that house prices seem to reflect the capacity of the local economy to service the loans.
It's actually worse: 18 years from now, a home in Sydney will likely cost twice as much, at least, while wages will only increase by a comparably small amount.
Only twice as much? I admire your optimism.
Someone handing out these 2x growth limit guarantees? I'll take the lot
The rough rule is they double in value every 7-10 years.
In 18 years the same place will probably cost four times as much or more.
Its mainly down to rate cuts, in the 90s prices definitely didn’t double. Interest rates hovered around 9-10% for most of the 90s
if we could have 10% rates I would be so happy.
the market would die overnight.
Nothing to do with 30 years of rate cuts.
If we can extrapolate with house prices why not extrapolate interest rates. -4% p.a. cash rate coming soon
This rule has been used for marketing and has been true lately but it can’t exist long term because if you double a number consecutively it gets very large very quickly. Try it on a piece of paper you’ll see what I mean.
It will literally take a lifetime of savings to even afford 20% of a house.
When will people learn Sydney isn't worth it?
Its a shithole.
Especially for the cost involved.
I used to think this way, until I lived a year out of Sydney and realised my parents aren't getting any younger, and while I made new friends I still missed my old ones.
If you don't have those sorts of ties, sure, GTFO of Sydney, it's not worth it. But for me, living within 30 minutes of the folks I care about is pretty hard to put a price on.
It’s for family/career reasons I would imagine. I’ve been out of there for 10 years but I’m slowly being dragged back.
>It’s for family/career reasons I would imagine
If they prefer to stay in Sydney more than they want to own a nice lower priced property, who are we to change their minds?
I’ve been 3.5 hours+ from my parents for 10 years. Yeah I can move to Wagga but that’s not really a solution.
Pick your priorities - you actually can't have it all.
My parents moved out of Sydney in the late 80's to SEQ for job opportunities and cheaper housing. They're having a very nice retirement in their 60's now.
I moved myself in my early 20's to regional QLD for job opportunities and have decided to stay for the lower housing costs which means being able to spend money on my other interests and set up my future.
Does it suck seeing my family a few times a year - yeah sometimes it does. Have I been able to grow immensely as a person by not living in my parents pocket and having to "get on with it" on my own - absolutely. I'm a much better person for it.
We'll just tear apart families and let people rot due to a lack of support systems and healthy emotional relationships. No problem here.
Its actually pretty sweet, the only real issue is the distance from Europe and USA, but if you're from an Asian background, that's not a big deal. Its safe, the bureaucracy isn't corrupt, weather is excellent, its clean, public schools are good, healthcare is excellent, food is pretty banging these days, produce is fantastic. You have clean beaches with actual sand, lots of parkland, wages are high and there is employment. No caste or social class systems. Taxes and cost of living are decent too. The only thing that's shit about Sydney is the housing is expensive, but that's because it's one of the best places to live in whole the region.
Wow objectivity and not pure negativity on this sub? Ridic.
Seriously you can't expect housing to be cheap in such a good city. Should it be cheaper than it is currently? Sure, but Sydney is a premium location.
Sure the costs are high and definitely where most people can afford to buy it is probably a dump but the city is still world class for weather and access to beaches and nature. I wouldn't buy here but there is a good reason why a lot of people do.
You have good weather, access to beaches and nature and big city amenities in Gold Coast, Perth, Newcastle at a fraction of Sydney's housing cost. Definitely way over priced to live in Sydney.
access to beaches
two hour commute
Sydney is awesome if you are a member of the yacht club .
This is going to tank the birth rate even further. Imagine having kids in a 2 bedroom apartment with cracks in the walls, no sound insulation and having to spend 50-60% of your income until your 70 for the privilege.
It's already tanked.
Child care costs make it very difficult and _EXPENSIVE_ to raise children. Hence why most of the increase in population comes from immigration.
You have to understand that there really are not enough locals doing specific jobs very much in demand: networking, cloud computing, cybersecurity, agritech, programming, specialised engineering roles, auditing, etc. Hence why we have a talent shortage right now. This is a legitimate problem in Australia hence why even with a conservative government, we're pro-immigration. Why there isn't a greater push to get much more citizens into software development, I'll never understand because clearly the tech talent are moving to the US to make it big.
And before anyone brings up "immigration only leads to lower wages", our borders have been shut for over 1.5 years, people getting pay rises now are only getting them because _employers_ are unable to underpay anyone (Australians and migrants) at the moment.
but at what cost?
you are like the " what did it cost meme"
My friend has worked really hard for 3 years and saved 100K with the support of 900K from parents .. He can finally purchase 1 million property
A truly inspirational story. Why can’t more young people get off their arse and do this?
I, for one, chose to be born in the Brighton Bubble, attend a private school, and use my father’s networks in law to land a plumb job straight out of Uni Melb. I also intend to use my mother’s networks in philanthropy and day drinking as well as dad’s mistresses’ influencer networks to further my career as needed.
Naturally when I decided to buy I purchased a small three bedroom house in Toorak with only a single lane pool and tennis court. By making these sacrifices and using my choices from birth I’m hoping to be able to afford something decent by the time I’m 25, at which stage I’ll likely have dodged three convictions for affray thanks to daddy’s friends in the law courts and only have a minor cocaine problem.
Happy to share other advice for any property newbies out there, HMU.
Fucking losers. I mean if they just chose correctly to begin with they could've had millionaire parents. *Shakes head*, people these days.
I saved the 100k just dont have rhe rich parents lol.. why can't more PARENTS be this rich lol
Almost there! For $1.15M you can buy this 613 m^2 villa https://www.realestate.com.au/property-residential+land-nsw-granville-203034766
Hmm tbh I don't know how helpful these types of posts are. They do not have any educational value and all that will be triggered is an emotional response.
We already know its hard to save up for a deposit and that property prices are high. It sucks, its unfair, but continuous posts about how bad the situation is helps exactly no one.
I miss when r/ausfinance was about teaching each other financial literacy.
On top of that the basis of comparison is a 2.7m property. What a useless fucking article
>all that will be triggered is an emotional response.
As opposed from the current housing market, based on pure logic and returns.
Still, there isn’t much need for threads like these
Clicks = $$
Even on r/AusFinance?
Actually it helps me. If it's made a talking point, and eyeballs are drawn to a highly volatile, serious issue, then it's more likely to be a voting issue.
Bring it on. I don't care if feelings get hurt if it means the property ponzi slows down, or more affordable options are presented.
We've spent 30 years buried with our heads in the sand and I'm fucking over it.
> I miss when r/ausfinance was about teaching each other financial literacy.
Look at the front page then. THere's always been posts like this, there's also posts of people helping others with their financial literacy, it's just that the post (one example) about stamp duty when you refinance a home isn't that interesting to the majority of people and isn't the top post.
>I miss when r/ausfinance was about teaching each other financial literacy.
And I miss the days when the young people actually had a shot at thriving in Australia but we can't have everything we want can we.
You do have a shot.
There are opportunities that your parents had that don't exist for you, but there are other opportunities that exist today that your parent's didn't have. However, if you spend all your time reading ragebait propaganda, you will definitely fail.
Please, I'm dying to know what shots we have.
My parents place has literally tripled in value since they bought in the early 00s.
Me and my missus both have pretty good, above avg salaries, but do you think its triple what my folks were earning 15 years ago?
I love how you're downvoted but no-one can offer a counter argument.
Because there isn't.
And I dont blame them; if I'd spent $900k on a shitty townhouse in Dural just because that's now the going price, I'd want my investment to make sense too.
Your shot is gdp per capita decline, climate change, renting forever and contract/casual work with no benefits
Who is buying a 3m property as a first home buyer?
I give up. I'm renting for life.
then they should try and live in a different part of Sydney
The most expensive parts of Sydney are ridiculously expensive and out of reach for the typical first homebuyer? Shocker!
Decided to have a quick look and compare [South east QLD to Sydney Housing](https://imgur.com/a/FDxI3Gq), Ohh boy am I 'm glad I don't live there.
Can you not advertise SEQ to more southerners please.
As someone who lives in regional NSW, I'd rather they pissed off to SEQ.
I could always use more people to play Gelball with. 😅
I mean. That’s Sydney vs Ipswich and Logan at that point. I’m not a huge fan of Sydney, but I’d take it over either of those
I’d take Sydney over all of SEQ
Hard pass on that.
I mean in the article they use an expensive part of Sydney as the location but they also use someone on 160k as the buyer. Did you even read it?
It's not a great comparison for a first home buyer though. A $3M property as a first home? I'm sure there are many who would never end up spending that much on a single home.
Why the heck would a FHB be buying in the most expensive parts of Sydney! Man Lambos are getting expensive, how's a first car owner supposed to buy one!
Shockingly vapid article... Oh wait, it's a [realestate.com.au](https://realestate.com.au) article
Next article up:
First home buyer? See which Sydney suburbs would take you as little as 5 years to save a deposit for.
Sacrifice 10 years of your youth and you too can own a one bedroom apartment built on a toxic waste dump.
so the typical person who gets a job when their like 17-20 ish will buy their first home when their about 40?
But they do in 20yrs time a 5 million dollar house now will mostly likely cost 10-15 million.
Yes, they just need to wait for their parents to die… it’s the only way to get enough money for a deposit in Sydney
If you want to buy in the most expensive area of aus yes. Or become a multi-millionaire.
Your reality check seems to have upset people
It's confusing to me. I guess my perspective is different.
"It all depends on how we look at things, and not how they are in themselves.” – Carl Jung
Exploit workers as a small business owner*
Small businesses are usually the worst! But that’s the reality today.
Absolutely! We like to think about the elites with their corporations, but it starts right from small business owners offering low wages so they can pocket more… while complaining no one wants to work hard…
It’s the system unfortunately we need to rethink radically. It incentivises and rewards this type of behaviour.
No they don't, didn't you see the recent News Corp nonsense article? All you need to do, is arrange to go fulltime a woolies for the duration of the application process, then go back to casual hours and go halvies with your dad for the first property. For the second one you just go halvies with your sister for a 10% deposit to take advantage of her first home buyers grant. Then you cut the house in two to double your rental income and use the entirety of all the equity of your existing properties to buy two more properties.
Then talk about how it's so easy to build a property empire and get rich quick! All it takes is a bottomless risk appetite, and willingness to take advantage of other peoples generosity!
Build bullet trains. Trigger the builders. They will build 10,000 schoffields, ponds and kellyvilles between Sydney and Canberra. Sky is the limit.
My request for NSW government though, is, before you do that, remove the stupid rule that the first home buyers will get the benefits only for new homes and that the max limit for this is 850K or something. If you do not remove this, all these new home that should be affordable in the first place, will be priced on and above 850K.
I don’t get why there isn’t a mass exodus of potential home buyers from NSW to other states. I feel like you’d need to be making absolute bank to be able to live anywhere near Sydney.
I mean things down here in SA aren’t much better off but holy shit we don’t have it as bad as NSW and the rest of the east coast when it comes to buying and renting property.
> I don’t get why there isn’t a mass exodus of potential home buyers from NSW to other states
There is, and it's happening in QLD.
We’ve recently had a fair few victorians soaking up the rental market in SA (particularly Adelaide) for the last 2 years since Covid began. It’s only natural that people move around + interstate to less competitive areas
I was thinking it was more the mexicans wanting to escape the plaguelands.
Yep. 1M+ fast become standard within 10km of the CBD and even further out.
Tasmania as well
Jobs. I've lost count of how many people i know have moved to Sydney due to better job prospects/pay. There are lots of jobs literally do not exist in smaller markets like SA.
There is, Brisbane property prices are skyrocketing because of Sydneysiders who have lost all sense of sensible pricing participating in auctions up here
Honestly… cause Sydney is a nice place where it’s expensive so it keeps being a hot place
Eh. I moved to Melbourne, bought a nice house in a beachside suburb, 8km to the CBD, on a train line. For about what I sold my inner west apartment for in Sydney. Sure, the beach might not be as nice but otherwise it’s not any less nice than an equivalent suburb in Sydney.
Elwood isn't exactly cheap though!
I lived in Hawthorn for 2 years - ending literally by running out when I heard of Covid cause I lived in Singapore when Sars happened and didn’t want that horror - came back to my family in blue mtns.
My experience of Melbourne is that everything it offers - Sydney does just a little bit better - it’s just that Melbourne has it really nicely concentrated and organised which makes a difference on your impression of it
Except sport, music and food.
I agree that it makes sense, but it’s being fuelled by people who genuinely cannot afford to live in Sydney to begin with; about how they cannot afford a rental there, standard of living is way too high, earnings do not qualify for a house fit to start a family etc etc.
And I get that Sydney is that ‘hot’ place to live if you’re in NSW but to me the cost of living is the biggest disincentive to looking for a job or a future there. i feel like you definitely need to be born into a wealthy family in order to have any chance of home ownership in SYD because international competition + retirees buying outlying vacancies to rent out are only making matters worse and soaking up all the available property, spiking the absolute fuck out of your average home by x amount .
I couldn’t imagine raising a family there unless I was very secure financially, I couldn’t imagine how shit things must be for the people headstrong enough to want to stay there and pay out the ass for an average rental that would cost comparably less in SA or WA.
I am empathetic and I do understand that people will want to live there regardless, as they may have family or a job already there that’s keeping them in Sydney to begin with.
If you’re a single, skilled, competent and educated person then move away to somewhere that you can afford and begin your career there. Sydney for the wide majority of Australians outside NSW is unaffordable and considered the end of the line career wise, it should not be the first place anyone considers moving for their first job out of uni on a bachelors, unless of course you’re looking to join the long line of people currently struggling to live there.
This solution seems to be happy with a created underclass permanently locked out of property if they don't have rich parents and don't earn over an increasingly large amount annually.
Not a solution. Cities need a variety of workers. They also need a variety of housing solutions.
>it should not be the first place anyone considers moving for their first job out of uni on a bachelors
So major cities can't have junior roles, let alone those not earning more than university graduates?
Basically "if you work in an increasingly large retail sector, you're fucked".
"Save $200k for a deposit" is not a solution to sustaining a diverse economy and social make up.
Well as an outsider layman looking inwards at NSW/ Sydney’s current housing market from another state:
The prices are seemingly fucked and nobody really has a chance at home ownership currently unless they come from a wealthy background or are very high earners.
There’s plenty of red flags across the state to show that the situation is not improving in the favour of the average earner which also sucks because housing is becoming disproportionate in NSW esp Sydney.
And it definitely seems like we’re moving towards an unfortunate future where people in a low-average income band are unlikely to own their own house even if their family has lived in the same suburb for decades.
I think there’s also this stigma among people outside NSW that Sydney is the place for them. So they build all of this ambition to one day end up there and be successful only to join the Sydney home ownership rat race themselves and becoming part of the wider issue, making it even more difficult for locals and skilled labourers/professionals to remain living there.
I don’t want the situation to be like it is any more than you do, if you are from NSW and are in the same boat with god only knows how many people then you have my sympathy and good luck in the meantime.
Unfortunately, competitive international investment in Sydneys property market (one of the most expensive housing markets in the world) + families owning multiple properties in the form of rentals and Airbnb’s aren’t doing the state nor the people any favours in completing their ambitions of owning a house. I wish I could say that this will all just blow over but I’d also start looking in more affordable cities across the country just to be safe
It seems though that we both agree on the problems.
Why dance around solutions?
Someone needs to take control of the fucking steering wheel already.
The legislative branch becomes more useless by the day.
I kinda feel like our whole government is becoming a full on parody. It’s like they barely even want to represent any of their constituents or any of the people who they claim to support . And with the amount of dumb virtue signalling career politicians that have made their way into parliament in the last 20-30 years, I’d say we’re fucked.
The executive and the judicial branches are fine.
The legislative increasingly seems incapable of handling any complexity whatsoever - palming it off to think tanks to paint whatever narrative seems suitable to donor's idea of "economic direction".
I hate that everyone hates "the government" when we all know it's incapable leaders in the legislative.
More and more often I grow curious of what we could've seen if Bill Shorten had remained in government
There has definitely been somewhat of an exodus in recent years, just based off my own anecdotal evidence.
But Sydney will always be Sydney. Yes it may be "bad" but people in Sydney also have much higher incomes than elsewhere in Australia. Sydney is where people with higher incomes want to live, and also where people who want to obtain high incomes need to live (at least, that is the perception).
I left a few years back to chase better income and cheaper real estate down in Melbourne. Admittedly the income thing is going to vary hugely from one industry to another though…
ABS data agrees with you. 2018-2019 Sydney was losing 25k people to interstate migration but gained over 70k from International migration which compounds with natural increase to increase Sydney's population [https://www.abs.gov.au/statistics/people/population/migration-australia/2018-19](https://www.abs.gov.au/statistics/people/population/migration-australia/2018-19)
This year Sydney has a net loss to both interstate and international migration [https://www.abs.gov.au/statistics/people/population/national-state-and-territory-population/mar-2021](https://www.abs.gov.au/statistics/people/population/national-state-and-territory-population/mar-2021)
Sydney is obviously not seen as 'bad' to everyone otherwise people wouldn't be clamoring over each other to pay huge amounts for houses. There is limited supply and a ton of demand especially in the premium suburbs referenced in the article.
The fact that Sydney grew the most of any capital in price even when the migration tap is off demonstrates the strength of the market.
All my family and friends live here 😔
SA is an amazingly well run state that has a growing space industry and houses with big plots of land close to the city for under 600k. I’m quite bullish on SA.
Don’t tell people that or our housing market will end up like Sydney’s
Lol as if the people here can afford to buy anywhere
I would love to move to Adelaide but my bro said it really lacks diversity.
It has a diversity of mullets
As long as they're not Western Sydney style of eshay mullets then we good lol
There is. 60,000 people left Sydney in 2020. Here in QLD the number of building applications has increased 4X.
Meanwhile 10,000 people with their families are catching the plane to Sydney when the floodgate opens.
You mean east coast lol.
buying into the property market in the 21st century is a joke
biggest scam but unfortunately everyone needs a house
This is why we need flying cars or teleportation. I'd happily get a house out west in bumfuck nowhere if I could fly to work or teleport
What a terrible terrible comparison, taking pricing from some of the most expensive suburbs to make a clickbait title.
It would be comparable to me saying the Average CEO is paid 1.99 million per year and the median house price in Brewarrina NSW is only $35,000 so an Australia CEO can buy 1 house per week in parts of Australia therefore housing is too cheap.
The article compares above average income and the median house price within the same area.
So no it is not the same as compating two things that are in the top and bottom 1% of their categories respectivly and in geographically different locations.
I hate to boomer on with this, but it just doesn't work like that. Unless they have money from elsewhere, you don't enter the market at a median house in an expensive suburb.
And are people really waiting for that 20% deposit in these days of LMI?
They fill these articles with pointless stupid figures. Even if they had a deposit, a $160k (probably \~$135kish after tax if a couple) household income will only be able to borrow about a million anyway. That income can therefore afford a $1.25m house, which means they need to save $300k for a 20% deposit and stamp duty. In reality they'll probably go with a 5-10% deposit meaning they need to save $125-175 which they could do in 2-4 years if they knuckle down.
Good luck to most couples putting together 125-175k savings in 2-4 years if they already have kids.
My view is to save up before you have kids. But I can't tell people what to do, or how to live. However, I do think we are in a time where you can't just go into parenthood without a plan. Especially if you want your kids to live comfortably and have things they need/want.
With the cost of living (rent/mortgage, food, bills, daycare, a variety of insurances, cars, school fees/supplies, etc, etc) an average family is not going to save 125-175k in 2-4 years. I'd say a couple would be lucky to save 20k/year collectively after all those costs. People are not earning close to the wage vs cost-of-living that they were 20 years ago. And the COL is continuously growing.
With all that said, some people live way beyond their means, and could save a lot more if they weren't so frivolous with their money. If you earn like 50k and are buying some fancy 60-100k SUV on loan, you need to reel yourself in and buy a Tarago, or a damn house. I know of couples who have spent this much on a new family car, and it just makes no sense when they should be trying to put their money into the mortgage, or savings, or house deposits, etc. People are addicted to the spender's thrill. Buying expensive shit gives a lot of people a buzz. But it impedes wealth growth by a lot when young people are spending this much on shiny things.
it totally makes sense for parents to start saving for a deposit that their kids could use down the line after 25 years. this is what good financial planning would be and you would give your kids a huge head start
the idea that you buy a cheap property and work your way up the ladder is a myth, empirically it very rarely happens.
Frankly the expensive inner ring Sydney suburbs grow in value faster than the cheaper shit anyway, so even if you're getting your foot in the door, the gap between what you have and what you want still keeps growing.
And your source for this? The stats say otherwise.
Only about 9% of buyers are first home buyers each year on average. On average over the last two decades 75% of owner occupier mortgages were issued to non-first home buyers. (The rest of the market is investors and non-mortgaged cash payers, mostly downsizers)
Almost nobody buys their ‘forever home’ first time statistically. The property ladder is a fact.
The point of the article is that when the cost of entry becomes too high, it becomes prohibitive.
Ergo generates political instability.
I think that it's absurd that people look at staying in jobs just to live in a city that will send them broke. You're betting off getting exp then moving somewhere else where you can actually settle down or buy into. It sucks but that's how alot of previous generations had to do it. Prices aside.
So don't buy in those parts of Sydney?
When houses that are in junked out housing commission areas in Western and south west Sydney are selling for over a million you know things are out of control.
The average yearly salary in Australia is 67k, it's not affordable anywhere anymore unless you get paid double the average salary which for most will never be attainable.
> The average yearly salary in Australia is 67k, it's not affordable anywhere anymore unless you get paid double the average salary which for most will never be attainable.
So like, 2 people on the average salary?
Imo, as long as property equity exists, it will be difficult fot First home buyers to enter into property
“In some parts of Sydney”, because now first home you buy must be in the Eastern Suburbs or Northern beaches right? Previous generations would have started in a shit hole with access to get to work, and build their way up to comfort and nice locations. But now? Not many have that patience and resilience. It’s all about the now and not being to afford it.
Even the shitholes are unaffordable now
I don't know what people were/are expecting when every tom dick and sally wants a backyard and the ability to live within 10kms of the CBD.
Our public transport sucks balls so people want to live closer and closer. Nimby's don't want anything taller than 3 levels in their suburbs so guess what, we keep building West, oh wait, even that is landlocked now because of the Blue Mountains, we keep building South and North West!
Don't buy in sydney?
>Don't buy in sydney?
Don't participate in 40% of sectors based in capitals. /s
Ah yes, the other 60% of those sectors are based in the void. If only they'd open offices in Newcastle, Brisbane, Perth or Adelaide.
I shouldnt have to move 3400km Melbourne to Perth to afford a first home because of government mismanagement, at this point i dont see another option though.
Hey, we'll have none of that sensible thinking here thank you very much!
Imagine being so entitled that you think a first home buyer should be able to afford an inner city property.
lol if you're buying in an area that takes 18 years then you need to lower your expectations. Just like cars, no one starts off with a Lambo.
yeah and like houses, buying a cheap car now doesn't enable you to get a Lambo later.
Yep. Basically just buy within your means and have reasonable expectations.
sure but what i'm saying is that you're sending the wrong message when you say "no one starts off with a Lambo".
Realistically its not about starting in Rooty Hill and working your way up to Edgecliff. If you can't afford it now, its not going to happen and acting like its being impatient to want to buy there is misleading. Some people just don't want to be pushed out of their communities.
Absolute nonsense. You think a 25 year old professional that builds up their career won't see a significant increase in wage over their career?
Anyone that brought in the undesirable outer suburbs 20 years ago are now laughing all the way to the bank because they brough within their means.
" If you can't afford it now, its not going to happen". What a terrible attitude. That's exactly how you end up with zero career growth.
Woopie Do. It has always been like that.
Other parts only take a few years.
Click bait news item.
Few years? Sydney? Good luck.
Come to North Queensland peeps
Pftt.. ya'll doing it wrong. All you need is casual job and you'll be rich!
AAAAAAAND there it is:
>“I still live at home now, in my dad’s garage. That’s the key to wealth building, until I get that passive income,” he admitted.
>“I find it devastating to think people are ‘complaining’ how difficult it is to buy into today’s market. For young people out there, anything is possible.”
>AAAAAAAND there it is:
Isn't it always the way with these stupid articles that get pumped out on wkly basis. Attention grabbing headline to suck you in and buried amongst the bullshit a little tidbit about the reality.