Time to Move out of Parents Home?

Am finishing my business degree at the end of this year (hopefully I pass my end of semester exams). Next step will be applying to jobs through sites such as Seek until a full time job is found.

Was wondering when you guys think the best time to move out is, and what ages you all moved out?

Notes:
Good relationship with parents at home.
Out of uni there's little chance I will earn much more than $40K a year so I'll plan around that as my salary.
Would prefer to avoid renting and throwing money away if I can.
Once working full time will pay parents $100 p/week.

EDIT: People have been slightly critical of the $100 p/week rent. Honestly my parents have asked for nothing and enjoy my company and the fact that I do things around the house that they are unfortunately unable to physically (such as mowing lawn etc). I would be paying for my fair share like groceries and bills on top of the $100. The $100 figure came from the fact that I have many friends who rent and a typical rental house in my area is $300 a week (they rent with two other people so it's $100 each, hence my rough estimate).

Comments

  • +1 vote

    20 when I got a job.

  • +12 votes

    I think everybody is different. It all depends…where you live, where you study/work. How much you are willing to spend on rent? Or do you want to save money to buy your own place? Also your relationship with your parents, perhaps siblings? Do they want you to move out? Another thing you can do is perhaps continue to stay at home, but pay a small 'rent' to your parents.

  • +58 votes

    The best time to move out is as soon as humanly possible. The sooner you move out, the sooner you can pay rent (dead money) to baby boomer investors. They can then use this money to pay off their mortgage and snatch up even more investment properties. The end goal is to have a small home investor class (rent-seekers) and a majority renting population (serfs).

    • +1 vote

      Sound advice.

      •  

        Indeed.

        You wouldn't want to be seen as leeching and mooching from your parents like a parasite now, would you?

        • +52 votes

          Looks like you just learnt how to use the bold function

    • +5 votes

      Interest money is dead money too. Most investment properties are negatively geared which means that the interest is more than the net rental income. Therefore it's cheaper to rent. If the property market comes down then it's definitely cheaper to rent as you won't make a capital loss.

      Back on topic, personally I regret not moving out earlier.

      • +3 votes

        If the property market comes down

        Big if. It's a big AND bold if. Who's going to let that happen? Who's in a position AND has the motivation to let that happen?

        • +2 votes

          Correct. We don't know the future. But I would be skeptical that the rate of increase we've seen is sustainable. If the market flat-lines then technically that's a decrease if you consider inflation. Anyway this is a discussion for another thread, but I was just offering another perspective to the phrase "rent money is dead money".

        • +3 votes

          Pretty sure the nobody had to motivation to let the last few financial crises happen (or were there?).

          All negative events in history (war, financial crises, tulip mania occurs in cycles because despite learning about them, humans have tunnel vision and cannot keep their primitive biological imperatives in check. Greed and fear, greed and fear.

          http://www.nature.com/news/human-cycles-history-as-science-1...

        •  

          @inherentchoice: if the market flatlined over a 10 year period (which is the period you should be looking at investing) then I am a monkeys uncle.

        •  

          @Jackson: There are still a lot of monkey's uncles in Japan paying mortgages they took out in the 80s.

        •  

          @kenm: I wonder if it has anything to do with their population decline ?

        •  

          @kenm: in Australia this is tantamount to climate denial, in that you are looking at a 1% issue over the 99% of people who made heaps of money.

      •  

        Do you mean moving out as in renting or buying?

        • +1 vote

          Either. But maybe rent first and see how you go. If you don't like it then you can probably always move back or move elsewhere.

      • +1 vote

        Back on topic, personally I regret not moving out earlier.

        Why's that?

        • +7 votes

          Well I agree with what MrMachine already said in his comment below. "It's about growing up, gaining independence, and finding yourself."

    •  

      But I thought the Great Australian Dream is to own your own home? But in reality, we're just the same as everyone else.

      • +2 votes

        Always find it ridiculous that owning a house in this crazy investment market can actually be classified as a 'dream' nowadays.

    • +2 votes

      Can't tell if serious or sarcastic…

    • +1 vote

      You should go into politics, preferably as a Liberal party candidate. It all about intergenerational warfare now, baby boomers living at the expense of younger people. Since there are so many of them, pandering to them wins you election.

    •  

      Rent is not dead money.

      For any property you can buy and live in, you could also have rented it out, so you're paying the opportunity cost (the cost of not being able to make an income from rent) in addition to the mortgage repayments.

      Regardless of what you do, you're always going to be paying money or missing out on income as long as you're living in a house as an independent.

  • +75 votes

    Stay at home and wait for your parents to move out.

    • +28 votes

      Stay at home and wait for your parents to "move out."

      •  

        Haha…oh…:(

    • +4 votes

      Stay at home and never leave your parents :)

  • +4 votes

    Stay at home for the cheap rent and move out when you buy your own, hopefully by the next five years.

  • +17 votes

    What are your parents' expectations? If they expect you to move out then you may not have much say!

    Coming from an Asian background, my parents encouraged me to stay home as long as possible to build up my savings. Didn't move out til I bought a place at 28 and financially in a good enough position to knock off the 500k mortgage in 6 years.

    •  

      I wanted to leVe my parents home when I was in uni and they took so much offense to it. So much so that they wanted to charge me tent to love in their home so I cAnt save up properly to move out. I really hate my Asian parents.

      •  

        Rent to love, that's harsh. Are they running some sort of bordello?

    • +4 votes

      Anyone who cares enough about saving money to be on OzBargain should be doing whatever is necessary to not waste half a million dollars in interest and/or rent for the next 35 years.

      All the bargains on this site put together are a drop in the ocean compared to the money you save by:

      • staying at home longer,
      • having roommates,
      • renting smaller, older, cheaper places in cheaper suburbs
      • not buying property until you've saved enough deposit that the interest portion of your mortgage repayment will be less than your rent
      • buying smaller, older, cheaper places in cheaper suburbs
  •  

    Interesting thoughts.

    I'm a man of humble means (I am on OzBargain after all), so I would not buy a first house >$400K, more ideally around the $350K mark, however with prices soaring the way they are….

    Would really like a $100K deposit and hopefully my gf would be in a similar position to knock off around $150-200K in the deposit. Really don't want to be 50 and still battling a mortgage.

    • +5 votes

      If you've got a girlfriend, living at home is obviously not impacting your dating life too badly. I'd stay at home at least a year into the job that you will hopefully secure, so you have a good safety net before you move out. Would help applying for rentals if you've been in the job a while.

      Personally I moved in and out and in again during uni, then out for a good while after I graduated. Later went overseas and spent all my money. Came back and lived at home for a while again much closer to 30, and its much less socially acceptable then. In retrospect may have been a bit better off staying home for a year after uni so I had a better nest egg.

      I would rent with a partner before purchasing with them though. Living together can change a lot. It isn't really wasted money - it is a chance to road test the living arrangement, the suburb, a lot of things. Not responsible for any household repairs which is a relaxing introduction to running a household.
      If you jump straight into home buying, you are making a commitment to something you've never experienced. E.g. what if you buy an apartment when you've never lived in one and find out you can't stand shared walls, or street parking, or a number of things you then choose to prioritise in the hunt when buying.

      • +4 votes

        Really great thought living with someone to test drive arrangements, I can appreciate how different people can be when living under the same roof as opposed to seeing each other for a few hours a day and no responsibilities.

    •  

      Don't feel like you have to own the place you live in. Buy where you want to invest and rent where you want to live. Problem solved.

  • +8 votes

    Never move out

  • +13 votes

    Seriously, it seems such a poor financial decision to move out and rent in the same town. When your circumstances warrant a move eg a job, or getting married, that's when I'd do it.
    I tried to move out of home when I got my first job but when I realised how inconvenient and expensive it was, I decided I could live a little longer in a small crowded home. When I was offered an interstate transfer a couple of years later, that was my time to move out.

  • +22 votes

    I moved out at 19 and my first job paid $23k. After rent, food and going out Fri/Sat night there was nothing left. But I wouldn't change it for anything. The pros and cons of moving out vs continuing to live with parents doesn't boil down to a financial decision or having a "good relationship" with your parents. I also had (and still have) a great relationship with my parents. It's about growing up, gaining independence, and finding yourself. No matter how good your relationship is with your parents, moving out will be a great experience in itself and will open the door to more great opportunities. You might move around a few different areas until you find one that's right for you. You might try living alone, living with flatmates, and living with a partner, all great things to do before you are saddled with a mortgage. It can be difficult when you start to get serious with a partner and you already have a large mortgage.

    • +13 votes

      It's about growing up, gaining independence, and finding yourself.

      Is it not possible to "grow up", "gain independence" and "find yourself" without moving out?
      At least this way you get the best of both worlds: the aforementioned + money saved by not spending it on rent

      will open the door to more great opportunities.

      Could be argued the other way. Staying at home -> not have to worry about rent/risk of being thrown up by landlords -> can concentrate on studies -> mo' money -> mo' opportunities

      •  

        An issue close to your heart, eh "2ForTheMoney"?

      •  

        You may be able to 'find yourself' and even 'grow up' while living with your parents but definitely not 'gain independence'..that is what moving out is all about.

      • +3 votes

        That's exactly right. I really doubt you can grow up, gain independence and find yourself while living with your parents. It doesn't matter how good your relationship is with them, or how much space you have. Until you are out there, supporting yourself and doing everything that needs to be done for yourself, you're only delaying your path into adulthood.

        Cooking, cleaning, laundry, paying all the bills, hanging out with flatmates (not family), or a partner, or being forced to more actively get out and meet people, are all part of it, and you will feel a sense of satisfaction and achievement from doing them and making it on your own. It's way too comfortable at home with the parents, especially when you have a good relationship with them. It's way too easy to be complacent about filling that need for human connection and socialising when there's a constant comfortable safe family presence at home.

        •  

          I don't know about that. My daughter is getting good practice at running a family home, slaving over me :)
          Maybe if she wasn't doing all the things you mention, but she certainly isn't using me as a crutch, as you seem to imply.

      •  

        Lived away from home for a year, and the best way I can put it is that I became better at life in general - more independent, grown up - the lot.
        But when I came back home - settled back into old ways of being a complete lazy waste of space.
        I think that space away from your parents/family makes a lot of difference.

  • +3 votes

    Apply for jobs now on the basis of an anticipated degree. Don't procrastinate. When you have a job, move out, be an adult, become independant and finish growing up. You sound like a sensible guy that needs to mature a little before becoming a rounded adult.

    •  

      Have started to apply for a few jobs, phone interviews occur however many state that they need an immediate full-time start in October, upon hearing that my exams finish in late November they are understandably quite reluctant to speak much further. However all have been polite and some interviewers have stated that they may call again a little later in the year to ascertain where I'm at. Yet applying for jobs that categorically request an immediate start I obviously ignore as I don't want to waste anyones time where both uni and exams will extend for a further two months.

      I was just thinking about the future and wanted to get some unbiased comments from people like yourself who aren't friends/family etc - and hopefully pick up some pearls of wisdom from others past experience. I like to think I'm reasonably sensible so thank you!

  •  

    Did you apply for any graduate programs? They allow you to finish your degree first before you start next year.

  • +2 votes

    Once u move out and stand on ur own 2 feet your an adult. Till then your a kid.

    • +1 vote

      Yes and in my eyes, adults don't run home to parents when the going gets tough, particularly if your above 40! Lol. If your parents are happy to have you, you help out and it lets you save..well think carefully. Plenty of time to be an adult but you can't go back. Reality might bite.

  • +5 votes

    My opinion is to move out as soon as possible. Financially you would be better off at your parents' but you will learn a lot more on your own, things that now you may take for granted. There is more to life than money.

    Peace

  •  

    I moved out at 18, as my parents lived 2 hours from the university I went to. I've always been in a share house, the majority of the time with some good Uni friends. I'm now 24, graduated Uni and currently building my own house.

    •  

      Wow that sounds like me (moved out at 18 as uni is two hours away), hopefully by 24 I will be able to afford house like you :)

  • +1 vote

    Do a thorough SWOT analysis, set up your personal risk register and commence mitigating accordingly by a lot of planning, doing, checking and acting and ITIL be ok, if you trust the best practice gurus…

    •  

      Haha have had enough practice doing SWOT analysis' at uni so this shouldn't be too difficult!

    •  

      found the IT consultant / auditor?

  •  

    Your parents have supported you up until now - the economy, your wage and buying power is not their problem.
    Dont make them support you further, unless you plan you give them a 2/3rds share in your property.
    By moving out and supporting yourself, youll gain much more in independance than can be measured in $$$$$.

    As Yhakong said:
    "My opinion is to move out as soon as possible. Financially you would be better off at your parents' but you will learn a lot more on your own, things that now you may take for granted. There is more to life than money."

    Its so true.

    •  

      Your parents have supported you up until now - the economy, your wage and buying power is not their problem.

      Them, the parents, personally, may not be responsible for the state of the economy, the level of wages and buying power. But as a collective, as voters, who vote for parties, politicians, and policies, it would be naive and irresponsible to assume that their actions don't affect the future, and the generations who live in that future.

      These actions could positively affect the future, or negatively affect the future. So, which is it?

      I say to them what they always say to the young 'uns: "Take some responsibility, you brat"

  • +8 votes

    $100 a week? Out you go, I'm moving in!

    • +1 vote

      Come with meals too? Free washing? Inviting isn't it?

  •  

    I have lived by myself since I was 14 and mum was paying for my accommodation in Singapore.

    When I turned 18 and legally allowed to work, I started working in a hotel to pay for my tuition fee and rent in Australia.

    Now thinking about it, I wouldn't trade living independently for anything else.I love mum and we still have a great relationship but it saddens me to see teenagers nowadays, age from 14 - 27 and still go back to parents for food to be cooked and for clothes to be washed and ironed.

    My daughter will be kicked out at 18.

    • +9 votes

      Or you could be reasonable and set boundaries around washing, food etc when she turns 18. Just because you had to struggle does not mean you should make your daughter suffer too.

      •  

        Where in my comment did I say I struggle or suffer?

        And yes there are boundaries at home re chores.

        • +11 votes

          May it's just the westerner in me, but I would say working to put a roof over your head and pay tuition fees at 18 years old is some degree of struggle.

          I guess my point was you've done the hard yards so your children don't have to. Hopefully one day your daughter will be able to provide for her children also.

          Perhaps it's just cultural differences. To me evicting a child because they have turned 18 is cruel

        • -7 votes

          @verapa: Everyone's opinion and way of raising children is different I supposed.

          To me, If I have done the hard yards so why don't my children have to? The only way to measure how great a reward is, is to measure how much work have been put into it.

          My mum net worth is USD 4 millions+ . Something I only knew when I turned 27 after being independent for so long. She said she decided to tell me because she knows I don't need her wealth to have a comfortable life. She's still alive and it never comes across my mind that I will inherit her wealth. This is a lesson that I will surely apply to my daughter (If I somehow manage to reach my mum's net worth ).

          The world is a cruel place, the earlier my daughter realises that, the better.

          EDIT: I don't think it's cultural differences, the Asian culture is that 3 generations live in the same roof. And I can appreciate how you think kicking a teenager out at 18 is cruel.

        • +2 votes

          @tomleonhart: Sounds to me like you had a multi-millionaire mother who funded your living in Singapore alone until you were 18. Whether or not she told you about it doesn't make a difference, there are certainly a lot of people out there who have done "the hard yards" and that backstory doesn't sound like you were one of them.

          I agree with your sentiment about 27-year-olds still going home to their parents for dinner/washing/ironing is a very unimpressive sight to behold, but I'd personally weigh up whether or not it was the best thing to do before pushing any daughter of mine out the door at 18. Some people would benefit from that experience and some might struggle, it's not a case of how it was when you were that age. Times have changed greatly in the last ten years, let alone longer.

        • -3 votes

          @RolandWaites: I said IF.

          I work 2 jobs now to fund my family. I used to work 10 hours grave yard shift to fund uni and rent. Never have I claim I have done the hard work because I'm doing the hard work now. Still a long way for me to retirement.

          You said you'd personally weigh up whether or not it was the best thing to do, I'll say personally I'll kick my daughter out at 18 because I know from now until then, she will be ready to live by herself.

          I'm ready to agree to disagree with other parents out there about our approach already.

        • +3 votes

          @verapa: I don't understand why it is perceived as a 'struggle' for kids to move out when they are 18. Work a part time job, get HECs to pay your Uni and live in a share house. This is not a struggle .. it is an introduction to real life and independence. I know lots of people who did/do this without it being a struggle. Just takes some hard work and commitment - which I guess is what is perceived as a 'struggle' by gen Y/I.

        •  

          @verapa:

          Haven't you heard the statistics? Most kids who inherit wealth blow it in a single generation. They don't know they value of it because they didn't earn it for themselves. Do as much for yourself as you can, as soon as you can. You will appreciate your sense of achievement and self confidence, and both you AND your parents will be better off for it.

        • +2 votes

          @dogboy:

          This is not a struggle

          It's not, is it?

          Work a part time job

          Where are these jobs? When McDonalds opens one job vacancy, there are potentially thousands of applicants. That is a struggle.

          get HECs to pay your Uni

          Get into debt to earn an increasingly worthless piece of paper? A paper that everyone else has? That is a struggle.

          live in a share house

          With what money? See point 1.

        • +1 vote

          @dogboy: finally an someone who has been on the same boat.

          Sharing house for 150/ week with a job paying $21-22 an hour for. 35 hours a week isn't struggle. i even had money to buy iPhone.

        •  

          @DeafMutePretender: The jobs are there for those who really want them. Don't wait for job ads to be posted - go front up to restaurants, pubs, clubs, retail outlets, anywhere that has employees with resume in hand and a good attitude and see how long it takes to find a job. Talk to your parents and friends and see if they know anyone with work available. Fortune favours the bold and those people waiting for jobs to be handed to them by doing the minimum effort possible (aka wait for job ad, post resume and wait for response) will always be the ones to miss out. If the job you get sucks and you hate it, don't quit but rather keep looking for other jobs until you find something that does suit you. It is a LOT easier to find a job when you already have a job.

        •  

          @dogboy:
          Hear, hear.

          Went to Uni at 17 and moved out from there. While I appreciate the need to live at home to save for home deposits, it seems young people now are staying home and doing bugger all with their earnings instead.

        •  

          @tomleonhart:
          I reckon people should have to pass a test before they can have children

        •  

          @dogboy: The cost of living and the hourly rate can be difficult to manage with the number of on-campus study required for some courses. (However, I do remember some faculties whose 'full time' course could fit into 2 days on campus.).

          I don't think it's fair to blame generational laziness, particularly from some generations which had free uni education or abundant scholarships.

    • +2 votes

      I just feel sorry for your daughter now, what sort of parents you are ? very sad !

      •  

        Thinking, i would be bursting to leave. Sorry. I am confused as to how you stop being a parent at 18. Why have children in the first place? They can contribute or you don't give them the chance. Strange… when you lose someone, particulary in horrifying or sudden situations i cannot fathom this kicking out to teach a lesson. Teach morals and values. Encourage. Lift up spirits not kill them. Each to their own though.

      • +1 vote

        I don't feel sorry for my own daughter. She still has food 3 times a day, 7 days a week, owns an iPhone, a bed to sleep on, travel with family 2-3 trips a year. Luxury that many don't have even in this country.

        What so sorry about that? Because she has to do house work and will be doing work experience to stand on her own feet?

        • +2 votes

          The sorry part is that you want to kick her out. An 18 year old is most likely just beginning their university degree, how do you expect her to sustain herself without a proper full-time job?

        •  

          @portard:
          By kick her out I think he is saying encourage her to be independent. I doubt she'll come home after her 18th birthday and the locks are changed. I agree with it. I know plenty of oversized 27 & 28 year old infants holding out for Dad's super.

    •  

      I will give my kids any advantage in life I can. Giving them a ton of cash to blow on junk isn't an advantage, but as long as I have a roof over my head, and they don't do anything grossly illegal, so will they. They will have to contribute. The random nature of illness, injury and making their way in the world may teach them more harship than anyone could need.

  • +6 votes

    Never moving out. Will kick out siblings.
    Take over all of upstairs and leave downstairs to parents. Solid plan.

  • +1 vote

    For me I'm 25 and at home with family. For us it's when we get married is when we move out. Its more a cultural thing.

    I just brought land off the plans this year and I'm planning to move out once I build on it.

    You could arrange something with your parents so you can buy your own place while paying them $100 a week whilst living at home.

  • +2 votes

    moved out at 17, passed my car license on my birthday then drove to kalgoorlie the next day.
    was working on the mines within a week.

    •  

      Good for you. Hope you reaped the rewards? Oddly enough i got my license the day of my birthday too. Right before going to school. First step to freedom i think.

      •  

        early 90s minesite = hard work and no reward, we where still in a recession, not like today

    •  

      Got my moped license on birthday @ 16 hehehe

      independence!

    • +1 vote

      I didn't get my license until 21 because couldn't afford a car until then and wasn't going to drive someone else's.
      I didn't leave home until my work was thousands of kms away.

      I like to think my family benefited from having me around. Am I a lesser person for supposedly delaying my independence for a few years? I don't think so.

      What does independent mean? That we do everything ourselves, and don't rely on anyone else? If that's the objective, I guess I'm wrong. I rely on lots of people, and people rely on me.
      If it means that we make our own decisions, pay our own way, don't take more than we give, then I was "independent" for years while still living at home.

      I don't know what's wrong these days that people think they need to go it alone to prove yourself.
      That's not a society, it's more backwards than earliest civilisations.

  • +2 votes

    Moved out of home when 32.. haha actually my wife to be moved in with me & my parents for 6 months (shes from overseas) and then the day after marriage day, moved into our house.

    Already been 5 years away from home, only 1/4 of mortgage left to go.

    I think its a society expectation to start thinking of moving out after your 18, but these days with $$ living pressures sometimes it makes sense to stay at home longer. Everyones different, depends on your situation. Normally you gain independance in your 20's & establish yourself.. but these days 31 is the new 21 ?

    If I had to do it again I would still stay at my parents until 32 but I would of purchase a property at 21 & rent it out to try & get a ahead a little bit more.

    • +1 vote

      I wish 31 is the new 21. I am turning 30 in a few months and already feel old.

      •  

        haha in a few years after 35 you will think 30 is young :P

      • +1 vote

        Yep, I think you are very old, you should plan to retire now :)

  • +1 vote

    Depends on your exact situation.

    Myself= good relationship with parent, lived fairly close to where I went to uni. As a result, I lived at home until I got married. I paid 'board' and did my fair share of house work etc, and I purchased most of my own groceries.

  • +1 vote

    I like that you plan to give your parents $100 p/w.

    Why dont you decide after to manage to get a full time job. '
    You might up wanting to move somewhere close to work.

  • +1 vote

    I moved out at 20/21 and yes you pay rent money but you also experience the fun part of being young and having roommates. Those experiences money can't buy.
    But, if money is a big issue then I understand why you would want to stay home.

  •  

    Until you ready to settle down with your partner (eg. married). Meanwhile, get free accommodation, free food, so you can put my money to invest on rental properties rather than for paying rent/mortgage. Of course, still help your parents out with the house as much as you can.

    Unfortunately, I couldn't do that since my parent is overseas and are not earning much! I had to pay rent myself since I was out of high school.

  • +1 vote

    Moving out is great and you will become independent.

    The only issue today is that property is so expensive.

    In the past you could move out at 21 or so, buy a house with a $50k deposit at 26. Get a boarder in to help you pay.

    It's much harder to save a deposit while you move out, as deposits are much bigger than the past.

    But still, move into a share household. Just make sure your parents don't turn your bedroom into a study because you might need to move back in one day.

  •  

    What amount of board do people feel is fair for a working adult earning $40,000 living with parents?

    •  

      If your parents are okay with it, why not? I think you shouldn't let other people's opinions affect how you wanna use your money and where you wanna live. However, for me, moving out has been a great experience (I'm earning 40k as well, in my first jobs, and just left school for a year or two)