Who Is Buying All These Properties in Kellyville/Rouse Hill Area, Sydney?

[Deactivated] on 08/02/2017 - 10:01
Last edited 14/02/2017 - 16:45

Hey guys,
I'm looking at properties for the future when we make a family and need a bigger home. We currently live in the greater Fairfield/Liverpool area in Sydney.

My question is, who is buying these properties for $1.1-$1.5 million dollars in Kellyville and Rouse Hill area?? Are these overseas investors? Or old people? Because i know heaps of people and not 1 person i know could afford such a mortgage let alone get the borrowing capacity to even buy these houses, yet they are selling every week.

For example, lets say you earn $100k and your misses earns $90k. You have a single debt of $380k but you will sell your current home to try fund this new property (current home value is say $620k). So let's say you have $220k in profit on your house (after agent fees etc), $150k in the bank, put down 20% deposit ($250k) for your $1.25M property, that leaves a $1M mortage. Who can service such a loan and who has the income for the bank to lend you $1M?

Surely there aren't 1000's of people doing this, because i sure as hell don't see bentley's driving around that area.

Who are these people??

EDIT: The general consensus from fellow ozbargainers is the buyers of these properties have strong equity levels and are merely upgrading to a newer/larger home for their family AND young couples with very high dual incomes (circa $300k+ combined) who want to bring up their young families in a nice area with great schools in the area and are willing to fund their life with debt. Look out once interest rates rise….

Financial

Comments

  • ozbd on 08/02/2017 - 10:21

    In your scenario monthly repayments are $5,252 and net monthly income is $11,719. It's not too bad if the loan is over 30 years. Obviously if you pay your loan over 30 years you will be paying a sizable amount of interest. That and I don't think people take into account the effect if interest rates increase.

    Loan: $1.1m
    Interest: 4.0%
    Repayments / month for 30 year loan: $5,252
    Person 1 net salary / month: $6,114
    Person 2 net salary / month: $5,605

    • [Deactivated] on 08/02/2017 - 10:35
      +6

      if a baby comes along……watch out!

      No money for food

      • [Deactivated] on 08/02/2017 - 10:44
        +19

        just quietly…… $1300 per week mortgage repayments is extreme for a house 60km away from the city.

        Sydney is becoming New York, without actually living down town

      • dasher86 on 08/02/2017 - 11:52
        +1

        Are you saying that a family of 3 can't live off $6.5k disposable income a month?

        • airzone on 08/02/2017 - 13:09
          +1

          If in the above scenario the house payments are $5.2k, then $6.5k income won't go very far.

        • dasher86 on 08/02/2017 - 13:11

          @airzone:
          $6.5k was after mortgage payments using the example from above.

        • airzone on 08/02/2017 - 13:12
          +4

          @dasher86: Oh. From enslaved's perspective, assume there's a baby and your dual income is now a single income.

      • meumax on 09/02/2017 - 14:42
        +14

        All those retailers going bust e.g. Pumpkin Patch, Payless shoes, Marcs, David Lawrence, Heringbone, Howards Storage World et al, I reckon this is one of the main reasons.

        People paying so much in housing costs either repayments, rent or saving up for deposit that there's so little left to spend on discretionary items.

        High house prices are unproductive and we're now seeing the results flow through to the rest of the economy.

        • Cluster on 09/02/2017 - 15:22
          +2

          Yes, absolutely. When $100k is required as a deposit to buy a 2 bedroom apartment people have to cut back on spending in other areas.

          As Australians we in general are obsessed with property and have no problems shoveling ever greater amounts of money into what is a non productive asset (if you just want to live in it).

        • manay005 on 10/02/2017 - 12:59
          +1

          Exactly - which is why the flawed tax system supporting this all needs to take these long term consequences in to account!
          I keep saying it , high house prices is very bad for the economy in the long term, after about 15 years of this "wave" we are starting to see the real flow on effects.

        • snook on 10/02/2017 - 14:17
          -1

          HOwards was always overpriced

    • haha on 09/02/2017 - 15:59
      +4

      "Interest: 4.0%"
      I wish I could get a home loan at 4% for 30 years.

      Best to use 7-9% as a long term benchmark for 30 years.

    • Ss-ss on 10/02/2017 - 20:31
      +1

      If you've been to Kellyville you will know it ticks all the boxes(people, schools,shops houses etc).. Thats the reason people pay for these suburbs.

  • kolorijo on 08/02/2017 - 10:22
    +17

    It was me.

    blushed

  • airzone on 08/02/2017 - 10:23
    +2

    People who already live there, and I'm sure all their income is going to pay for the house… Hence no Bentley's.

    • [Deactivated] on 08/02/2017 - 10:35

      Yeah i can see that a $200k total income for a husband and wife can service the loan, but are they eating noodles for dinner and staying home every day no life?

      • ItsMeAgro on 08/02/2017 - 11:28
        +4

        Double Income, No Kids, and a lot of financial help from their parents, usually.

        That plus Chinese millionaire investors.

        And yes, I know migrant families who eat rice and dhaal for every meal, having never eaten out, never let their kids go to a movie, nothing like that, for all the years they've lived in Australia, so they can afford to buy a million-dollar McMansion purely to show off. It's a shallow, miserable existence, IMO, but it's their choice, I guess.

        • tonyjzx on 09/02/2017 - 12:18
          +5

          I would agree with you in many ways but youre talking about differences in culture that are ingrained.

          eg. I am an Australian. I actually consult with media companies and I get free tickets. Be that as it may, I dont go to the movies much because I think Hollywood is a giant shit mill. I got free tickets to see a movie and I felt liked I wasted my 2.5hrs in uncomfortable seats.

          This is worth $20? Not to me it isnt. And I'm an Australian who went to school, university here. My kid, also Australian wouldnt go to the movies if you paid him.

          People consume in different ways. People want to live in different areas. My sister was in love with the Newton style apartment life. Like many girls she didnt like cars so didnt drive much.

          I'm different. I'm a motoring enthusiast. I would love a huge property where I can work on my car.

          Saying that, the property we have now, some in the $2 mil. range, we could not buy with the money we make now. That's the reality and our income in well into the six figures. Even if the bank was willing to loan you, you'd be optimistic to sign, especially in this economy.

        • magikz on 09/02/2017 - 19:45

          @tonyjzx: May I ask what you do for a living out of curiousity? Personally I work as a developer and would love to earn enough to have a property.

        • chefdillu on 10/02/2017 - 14:06

          :)

        • chefdillu on 10/02/2017 - 14:07
          +7

          Mate these guys work so hard and their kids are school toppers, While all others wait in the centrelink to collect their allowance
          They know how to respect their parents and call them Dad & Mum not My Old Man

          When our kids ow up they will all be working for them one day. Just like in the UK

        • tonyjzx on 10/02/2017 - 19:29

          Kind of a ridiculous question. Of course you can buy property. It just may not be of the standard you're accustomed to.

          eg. last investment property came in at $380k in a western syd. suburb, garage, 2 bed, rents easily

          if you cant get approved for that… or you can look out past penrith and see whats there

        • coko savage on 10/02/2017 - 19:40

          True and live with 10 people in a 4 bedroom house.

        • boretentsu on 02/03/2017 - 20:29

          And yes, I know migrant families who eat rice and dhaal for every meal, having never eaten out, never let their kids go to a movie, nothing like that, for all the years they've lived in Australia, so they can afford to buy a million-dollar McMansion purely to show off. It's a shallow, miserable existence, IMO, but it's their choice, I guess.

          And It's forcing everyone else to do the same lol. Dhaal, rice, ramen, dollar Coles bread etc.

        • [Deactivated] on 05/03/2017 - 18:02

          @onebutters:

          Depends on your priorities I suppose. Something has got to give.

          By the way. As carbs go. Dhaal, rice, ramen, bread, potatoes, oats. Quite similar to how they fill you up per dollar-cost.

        • Braintrain1000 on 08/03/2017 - 07:10

          @chefdillu:

          Good observations

        • ar993 on 22/03/2017 - 22:08

          I have tremendous respect for families like this! Parents of these families happen to sacrifice all the lavishness of life and invest everything mainly on their kids. No wonder why their kids shine at school and unis and end up earning heaps (and help their parents financially as well when they're in need).

      • airzone on 08/02/2017 - 13:19
        +1

        What I mean is that it's not a new place. A friend of mine bought there 12 years ago, and certainly didn't pay that. But when he moved fairly recently, paying 200 - 300k for a trade-up wasn't too much of a stretch, considering their financial situation had improved over the past 12 years.

      • highdealer on 10/02/2017 - 01:25
        +3

        With 200k income total you should still have at least 12k a months after tax.

        $6k go to the mortgage. That leave $6k disposable income.

        $150 council rate, $300 gas and electricity bill, $200 for phone and internet, $500 for car insurance and registration, $400 for fuel, $250 for health insurance. All bills and essential utilities are not even $2000 ( and that is being generous).

        It's a bit of a stretch for 2 people to eat noodles for dinner on $2000 a month let alone $4000.

  • Diji1 on 08/02/2017 - 10:24
    +38

    i know heaps of people and not 1 person i know could afford such a mortgage

    You don't know very many people outside of your own income bracket which is normal.

    • [Deactivated] on 08/02/2017 - 10:34
      +4

      this is true….

  • cypher67 on 08/02/2017 - 10:45
    +5

    Anyone with half a clue on how investments work are not buying luxury cars

    • onetwothreefour on 08/02/2017 - 11:24
      +72

      Unless you work at westpac

    • airzone on 08/02/2017 - 13:11
      +3

      crap.. I just purchased my 3rd high-yield investment based on ozb advice..

      • OG Puppy Banana on 09/02/2017 - 16:22
        +6

        I fee like the advice is getting dubious…

        I'm still awaiting the ROI on my OzB endorsed high yield investments in Dyson V6 vacuums, NES Classics and free cokes from Nandos.

        • StingyBritches on 09/02/2017 - 16:34
          +8

          I think I purchased at the peak of the 'Eneloop' boom…

        • syousef on 10/02/2017 - 12:52
          +4

          @StingyBritches:

          Lucky you. I purchased at the peak of the Note 7…Boom!

        • Kangal on 10/02/2017 - 17:24

          @syousef:
          Shoulda gone Xiaomi Note 3….OzBargain Edition

        • syousef on 10/02/2017 - 18:57

          @Kangal:

          I actually own an LG G4….which is not much better, but at least it won't burn my shit down.

  • Ryanek on 08/02/2017 - 10:47
    +1

    Stay in the greater Liverpool area and raise a family where it can be afforded. There are lots of new infrastructure and public transport works planned especially with the new airport coming.

  • Baysew on 08/02/2017 - 10:49
    +22

    Who Is Buying All These Properties in Kellyville/Rouse Hill Area, Sydney?

    Broden is.

  • ItsMeAgro on 08/02/2017 - 11:27
    +6

    Houses cost $500,000 to $1,000,000 here in Blacktown, now, mate. Kellyville area has always been about twice as expensive.

    For a couple if decades at least, Kellyville area has traditionally been seen as the place Western Sydney bogans go when they make it rich enough to afford a truly massive mortgage.

    Once you've made your big bucks charging $200 per hour as a plumber in Mt Druitt, you buy a house in The Ponds, so you can lord it over your friends and rellies.

    But ludicrously-unaffordable house prices are not confined to that area, mate. Foreign buyers and the-bubble-never-bursts confidence have driven prices sky-high everywhere.

    • robb6014 on 15/02/2017 - 20:23

      I live in Bella Vista and we consider The Ponds or Kellyville to be Boganville\shantytown - tiny blocks in those suburbs.

  • aussieprepper on 08/02/2017 - 11:35
    +6

    Seriously who would pay that much to live out west? Why not just move up or down the the coast? It takes like an hour and half by train to get to the city same amount of time as it takes to get to Gosford or the gong?

    • ItsMeAgro on 08/02/2017 - 16:26

      Nope, Blacktown to Wynyard is 48-56 minutes on the train (depending on how "express" the train is).

      • aussieprepper on 08/02/2017 - 16:54

        Standard trains are similiar times?

        • ItsMeAgro on 09/02/2017 - 09:50

          I think the max I see is about 70 minutes. There are no trains that stop at every stop between Blacktown and the city, of course.

          Bus from Kellyville area to the city is about 30-45 minutes apparently, with fast bus lanes and the M2.

        • zealmax on 10/02/2017 - 10:24
          +2

          @mgowen: 30-45 minutes? Serious? I couldn't drive that fast using M2 and no traffic.

        • Kangal on 10/02/2017 - 17:25

          @zealmax:
          Need those personal jetpacks we saw on The Jetson's, they should be here any day now….

          …any day….

        • zealmax on 10/02/2017 - 20:00

          @Kangal: Stargate

    • woodwa on 09/02/2017 - 08:17
      +3

      Open houses up here on the coast are all ex sydney buyers..

      And the prices here have gone up faster than sydney in some suburbs..

      • aussieprepper on 09/02/2017 - 12:14

        Yea its a different reason why people move. My grandparents moved up to long jetti about 20 years ago. If only they would have kept there house around here.
        I think people from where i live in Maroubra dont mind the coast because its the same as around here use to be. Heaps of mates from high school moved to the coast.

    • jellykingdom on 09/02/2017 - 15:34
      +3

      Train from Wollongong to Sydney is like 1hr 45min, and they aren't very regular. I had a friend who was doing this every day and she was going nuts from the commuting

      Additionally the road network down south sucks. You can't exactly commute to Parramatta from Wollongong because it takes 2hrs in the car (or like 3hrs on train)

      • xoom on 10/02/2017 - 06:47

        had 2 former colleagues from previous jobs who drove from wollongong to macquarie park. and a third who drove from shellharbour to macquarie park. anyoneone asks where shellharbour is. when you get to wollongong from sydney. you keep going down south.

        • jellykingdom on 10/02/2017 - 09:24

          That is legit insane. You'd be driving for 5hrs a day

        • xoom on 10/02/2017 - 10:04

          @jellykingdom: the kicker is this was on a 12 hour shift.

        • aussieprepper on 10/02/2017 - 11:45

          @xoom: My girlfriends family travel from Morriset to Sydney for work. That's about a 2 hour trip each way.

    • macrocephalic on 10/02/2017 - 17:48

      Why not just move to Brisbane? You can get a [cheap] 4 bedroom house for about $450k - and have a 30 minute commute to the CBD. I ride a motorcycle so I my commute is only 25mins.

      The weather is hotter, and the average pay is a bit less - but think what you can do with an extra 10 hours of free time every week.

      • vetopower on 11/02/2017 - 17:07
        +1

        10 more hours per week to complain about property prices on OzBargain!

  • sd4f on 08/02/2017 - 13:02
    +8

    I think a portion of investors are betting purely for the capital gain speculation. They're probably mortgaged as far as they can go, and are paying it back very slowly, if at all. After all, the statistics for the last few years show that Sydney property has been one of the best investments around.

    It also explains why our economy is teetering on the edge, so much money is tied into unproductive speculation, that there is comparatively little spending on anything else. Couple that with people mortgaged as far as they can go, they don't have discretionary spending anymore, and it probably explains why money isn't moving around the economy, and why politically, there are grave concerns for a recession.

    • tonyjzx on 09/02/2017 - 11:47

      read up on interest only loans… the new hotness

  • macca9123 on 08/02/2017 - 13:17
    +20

    As someone who has recently purchased a property in the Kellyville/Rouse Hill area, I can tell you that a large proportion of the people attending open homes are families with young kids. We spent 9 months looking for our ideal property and attended almost 70 open homes. Families looking for room for their kids (often moving from inner, higher density areas) represented a significant % of the potential buyers.

    My wife and I grew up in the north and south of Sydney respectively, so we weren't all that familiar with the Kellyville/Rouse Hill area prior to renting and ultimately buying in the area. Our reasons for buying in this area were (in no particular order):

    • A decent sized home for the kids to grow up in without having to move to something bigger when they become teenagers. Though the newer housing developments tend to have smaller land sizes compared to the existing 15-20 year old properties in the area.
    • Affordability compared to the coastal regions we grew up in.
    • Age of houses. Our house is 18 years old and doesn't really need any significant upkeep to it other than maybe a bathroom renovation in the next 5 years. Obviously many people choose to build a new house, which has its own set of pros and cons.
    • Proximity to the in-laws. It's only a 35 minute drive down the M2 for the missus to see her mum. It's also just far enough away from them too…
    • Future infrastructure. Without the train line going in I'm sure the area wouldn't have taken off as much as it has. It will also be nice to have a hospital in Rouse Hill to service this growing area too.
    • Most of the major employment regions for my work (IT) is on the northern side of Sydney (North Ryde, Chatswood, North Sydney, City), and this aligns well with the future train line.

    How did we manage to afford to buy a house in this area? Well we worked hard and significantly paid down an investment unit over a period of 10 years and reaped the capital gains. Yes we have a large but manageable mortgage but if we couldn't afford this area then we would have looked at more affordable areas nearby (e.g. Quakers Hill is quite family friendly and much more affordable).

    That being said, if we didn't have family in Sydney then we likely would have moved to somewhere regional or interstate. But having the opportunity for my kids to grow up with their grandparents only a reasonable drive away is way more important than dealing with Sydney's problems.

    • Sweetnsour on 09/02/2017 - 13:43

      The OP is suggesting it's a first home buyer however typically it's families wanting more space and upgrading from a fully paid off apartment to a detached home.

      That being said. The prices are OTT considering 10 mins down the road is rural land waiting to be subdivided.

  • Euphemistic on 08/02/2017 - 15:17
    +6

    Once you are in the market, it is easier to step up to the next bracket.

    eg. Buy at $400k, live in it a few years, income goes up (promotions etc), pay off loan as you go, capital gain sell for $600k, able to borrow more - $1M property is in your sights while interest rates are low.

    You crave the prestige, so borrow as much as possible. When interest rates go up, which locations are the first to end up with mortgage stress? The sort of areas you are talking about. Big loans for big/flashy houses to keep up with the Jones'.

    • [Deactivated] on 09/02/2017 - 23:36

      Well due to the excessive stamp duty and agents fees involved, it gets more expensive to move up actually.

      • Euphemistic on 10/02/2017 - 06:48

        Yes, but if you have already paid to get into the market, particularly before a boom, it is easier to reach to the next step.

        Compare to climbing a ladder, you start at the bottom and work your way up the rungs. A boom adds more rungs to the ladder in between each of the current rungs. If you are already half way up then you have there is twice as many below you, but you haven't actually has to climb them. If you haven't been in the market, you need to climb twice as many.

  • [Deactivated] on 08/02/2017 - 15:51
    +11

    You guys are the best. I could sink beers all day and talk with you all - of course the beers would need to be an ozbargained though.

    Few points i've taken:

    1. McMansions where the successful plumbers and aircon guys from Mt Druitt and Seven Hills now live to show off to their friends and are in debt
      2.Capital gain speculation (most likely a few years ago, decreasing supply and overall demand has increased therefore extreme prices)
    2. People who purchased property before 2011 and have managed to increase their equity, an upgrade isn't that much of a step once they sell their first PPOP
    3. People mortgaged to the shit house and cant afford a movie for their kids.

    Great info guys. Funny world we live in

  • StingyBritches on 09/02/2017 - 10:56
    -3

    OP muttered: "My question is, who is buying these properties for $1.1-$1.5 million dollars in Kellyville and Rouse Hill area?? Are these overseas investors? Or old people?"

    Old people? How do you work that out? Not many old people I know with that kind of money. Most purchased their houses 40-50 years ago and stayed put. Are you Scott Morrison in disguise?

    Wish I had a lazy million to splurge on a house…

    • [Deactivated] on 09/02/2017 - 11:13
      +6

      there was no 'working out'. A simple brain dump. Older investors who purchased their original homes in <=1990 of which is now valued at over $1M so they sell it, wanting to move closer to their kids or something. Sure is possible

      • tonyjzx on 09/02/2017 - 11:51
        +3

        I dont know why you found the 'old people' thing so difficult to understand.

        There are 'old people' who bought a house in the suburbs, maybe at $50k $100k $150k 20, 30yrs ago, now these are worth $750k etc. Yes, a 1/4 acre block house was as low as $250k within memory in Sydney, in a suburb a hell of a lot closer than Kellyville.

        These people CAN afford to buy a million dollar houses elsewhere. They arent subject to huge loans if they sell a house at $750k to purchase at $1 mil.

        Its not all wine and roses… back then I remember the 12.9% mortgage rates…

        Then again, not all 'old people'. I'm sure there's a lot of pension etc.

        • [Deactivated] on 09/02/2017 - 11:59

          thanks mate yes that's what i meant by 'old people'. For example i have mates who's parents purchased in 1970 for $15,000, now the house is valued at $1.2M……

        • tonyjzx on 09/02/2017 - 12:07
          +3

          @enslaved07:

          'old people' is as young as people in their 60s… hell my dad is 75 and he drives works operates a PC and smartphone has a full head of hair 6ft tall and could probably still punch me the (profanity) out…

          he too bought property in the 70s and held onto it

          back then you could buy a house or car for similar-ish money… the car is now rusted metal… the house is literally worth more than many people will earn in their lifetime

          my opinion is that its sheer population growth AND people using housing as a investment vehicle

          houses shouldnt be for financial gain, to finance your lifestyle or retirement or as a source of value for overseas investors… but hey, i'm wrong and the world is right.

        • Euphemistic on 09/02/2017 - 12:37

          @enslaved07: Those sort of old people probably aren't going to move out of the current popular suburb they are in into an area like Kellyville, new house or not. They'd be more likely to downsize and buy a townhouse or unit in their current area, or move up the coast away from the big smoke.

      • StingyBritches on 09/02/2017 - 12:43

        In answer to enslaved07:
        Possible, but not definitive.

        • [Deactivated] on 09/02/2017 - 12:50

          Yes, absolutely. 150K earners with young families would be the bulk. It's a poshee westy area 60km from city

        • StingyBritches on 09/02/2017 - 13:04
          +2

          @enslaved07:
          I get defensive when I read old old people/baby boomers are responsible for every problem that exists.

          Most of my peers fall into the boomer demographic and simply could not afford to move or upgrade even if their house is now ‘valued’ at multiples of their original purchase price.

          Example: If you purchased your house for $50k years ago and it is now ‘worth’ $350k, then you are in the same market. To upgrade you would need to add a considerable amount to your $350k. Most older people aren’t comfortable with getting into debt at their age.

          Sure, downsizing may suit some and they would (I suppose) make a ‘profit’, but most I know worked hard to get what they have and don’t need to own a MacMansion.

          I feel bad for anyone entering the housing market. It’s now ruled by investors and preventing younger people from getting a foot into the property market. For a society I find that shameful.

          enslaved07, this is an interesting debate and it’s pleasing to see it conducted with good manners between us.

        • tonyjzx on 09/02/2017 - 13:13

          @StingyBritches:

          agree not everyone who is 'older' is a winner

          i remeber an old lady who got $963k for a house in Sydenham or some crap due to Connex.

          She felt she was hard done by because he 'lifestyle was impacted'. Impacted 963,000 times.

          Older folks have to make a determination. If they want to live on a 1/4 acre until they die and it goes to their kids, good luck to them.

        • [Deactivated] on 09/02/2017 - 14:21

          @StingyBritches:

          Thanks for your interest. I am also fascinated at everyones opinions on this as I'm one of the young ones trying to get into that market for my 2nd house (McMansion) however borrowing $1M scares the hell out of me…..

          I don't blame anybody - i was really curious as to who the buyers are. It staggers me that 60km west of the city people are willing to spend that amount of money, however I can see it is an alternative to the northern beaches and eastern burbs…it's fascinating how many good earners there are out here or people that have cash/extreme debt!

        • tonyjzx on 09/02/2017 - 14:40

          @enslaved07:

          I am always immediately shocked by the monthly figure. Even if you had $200k, would you borrow $800k?

          How sure are you that you can make the monthly payment for 30yrs?

        • StingyBritches on 09/02/2017 - 14:56

          @enslaved07:
          Another hurdle is where you originally purchased your property affect where you can buy in future. I know people (such as myself!) who possibly should have purchased in a 'better' area, but instead opted for a slightly larger block and lifestyle. Whilst my property has appreciated, those that moved closer to the city saw their properties go up in mega-multiples. So… if I ever wanted to move closer to the city I can not afford it - I'd have to 'upgrade' in my area.

          Good luck getting that McMansion - just don't let it rule your life so you miss out on all the other fun stuff!

    • DrDollar on 09/02/2017 - 20:44

      @StingyBritches Oh dear, what rock have you been living under?

    • sd4f on 10/02/2017 - 10:02

      Old people? How do you work that out? Not many old people I know with that kind of money. Most purchased their houses 40-50 years ago and stayed put. Are you Scott Morrison in disguise?

      Some older people have been pooling all their funds and sinking it in the most expensive house they can afford, that is sell their existing house, collect cash, i'm not sure what they do with super since i'm not fluent with the rules, and use it all to buy a more expensive house.

      Purpose of this is that the house isn't means tested, and in arranging their affairs in this manner, they are then eligible for the pension, whereas previously they may have had too much in savings.

      • StingyBritches on 10/02/2017 - 13:12

        No argument from me that 'some' people probably do this. They are usually the canny folk who can afford smart accountants. Those folk are rorting the system.

        My point still stands: Not all 'old people' are like that. Most just want to have a comfortable retirement. It's BS that they ALL flit off on boat cruises and spend all their money. Unless you are very well off you will need to fund ~20-30 years without any income source. That's kinda scary…

  • kallico on 09/02/2017 - 12:04
    +2

    You need to look at the average income of people living in the hills. Most people who live there have had high incomes. Their kids grow up and move to kellyville or rouse hill and they usually have high incomes also. My son and daughter have properties and both earn 150k plus. This is the usual of the average buyer in this area.

  • Brendoo on 09/02/2017 - 14:02

    Many people in my office live there. I work for a large corporation and many professionals and middle managers live in the hills district. Earning good money, with a partner earning similar, it's easily affordable. They cant afford a similar sized house in the Eastern Suburbs or North Shore so choose the hills.

    Our company, as do others near where I work, provide free company paid bus services each day direct from our office to/from Kellyville.

    Before too long the new north west rail link will connect that area too.

  • rave75 on 09/02/2017 - 14:50
    +1

    Well I bought a 3-bedroom investment house at kellyville for $630k off the plan in 2012 and settled in 2014. Single income (my income was like 55k per year back then), but I had saving to pay for 20% deposit and could still show that I have a sizeable saving after the deposit too (hardly spent for unnecessary stuff, do some investments etc). Back then it was a lot easier to obtain loan I suppose, banks could use interest only repayment when they calculate your borrowing power. Also I came here to study uni from overseas. So yeah, back then it was possible but now it is not. I know there are a lot of investors who bought the houses in those area.

    One more thing, rental in Kellyville seems stagnant, I've been getting $600 since 2014.

    • jellykingdom on 09/02/2017 - 15:35

      Rental maybe, but the capital growth has gone mental!

      • Geoff-bargain on 09/02/2017 - 18:56

        And interest rates have dropped

  • mick123 on 09/02/2017 - 15:20
    +2

    Just FYI, for your situation, you are comparing Fairfield/Liverpool to Kellyville/Rouse Hill.
    That is not a very valid comparison.

    If you want to compare north west to south west, in regards to housing and what suits you would be better off comparing the below, which are approx distance to your mentioned suburbs:

    Fairfield/Liverpool to Blacktown (10min to Kellyville)

    Kellyville/Rouse Hill to Chipping Norton (5 min to Liverpool, 15min to Fairfield)

    Chipping Norton houses (4br/5br) also go for $1.2+ . Not many Bentleys there either. Houses would be older. Very few people move out of this suburb.

    The market is highly priced no doubt in Sydney, but there are reasons people have chosen the area (as Macca9213 said).

  • enzioFirenze on 09/02/2017 - 15:30

    I saw a recent news article about someone proposing an inheritance tax to solve this issue. Food for thought?

    • SpotTheOzzie on 09/02/2017 - 21:07
      +4

      So the hard work your parents did to pass to you, or you did to pass onto your kids should not be rightfully and wholly yours/theirs; but owed a portion to the state after it's already been taxed.

      Nope - the real solution here was to not have negative gearing but that's already ingrained and affected the upper/lower class already.

  • jellykingdom on 09/02/2017 - 15:39
    +4

    I feel the same as you. I'm confused at how people (particularly younger people) are buying these houses. My wife and I make a good bit of money, have plenty of equity etc, we don't splurge and waste money, and the mortgage repayments would still be a total killer. You need an entire person's salary just to pay off the repayments!

    • [Deactivated] on 09/02/2017 - 15:46

      @jellykingdom music to my ears mate. Glad i'm not the only one

    • Piranha2004 on 09/02/2017 - 16:04
      +1

      I cant wait until interest rates rise and the repayments for these large mortgages become unsustainable. People will need to learn the hard way.

      • jellykingdom on 09/02/2017 - 20:45

        I sort of agree but although it would be great to see all the speculators get their come uppance, it could seriously damage the entire market and the entire economy

    • jellykingdom on 10/02/2017 - 09:27
      +1

      My in-laws live in Rouse Hill but they've been there for 15years now, so they built back when it was brand new. Pretty damn good financial decision

      they were trying to convince us to buy land out that way about 5 years ago…………….don't i feel stupid now!

  • WreckTangle on 09/02/2017 - 18:03
    +6

    Barnaby Joyce thinks you should move to Tamworth. And it's only a 5 hour commute. Problem solved.

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