https://www.youtube.com/watch?v=rZ9MxL6m8rI&t=0s
I cant say I agree with the fat guy. I think he got his properties because of other things.
Those who have multiple properties Which one do you agree with?
tl,dr: the secret was
(1) put anything you have into buying the house, say no to leisure, good food, going out,…
(2) buy as soon as you can even if its a shitty property because the price will always go up.
too lazy to watch - can you post the transcript.
my guess: bought early. now, too late dont dream to have more than one unless you win lotto or buy in wagga wagga
1:15: "Never had 20% deposit for any house". he is just another one of those people who are over-leveraged and pray that the RBA doesn't increase interest rates.
1:45: "If house prices go down, we are all done anyway". So if house prices start going down, he will start crowing to his local MP etc to protect property prices.
In summary, the guy in the green shirt is saying buy property at the highest leverage possible because at the end of the day, it is a government guaranteed investment.
Get a house with 20% deposit (play it safe), first house don't need to be a castle (relocate for affordable location), don't have avocado for breakfast (listen to politicians at times, they are the highest investment property owners in CBR), and you be fine. :)
edit: get a better job :)
That whole video made me cringe.
I'm a firm believer that you can own your own home. Is it easy? Hell no. But we are not in a horrible situation regarding property prices (compared to the likes of Sydney, London, Hong Kong, etc.). There is ample land available for growth in Melbourne which will ultimately limit the price growth.. Especially if road and rail infrastructure improves.
I feel like those who complain about housing costs have decided at the age of 25-30 after years of partying, travelling, basic jobs and living at home that 'omg I need a family and a house'.. 'Omg I used to live in Carlton so I need to live there'.. 'omg I can't afford it'. No shit. This is an unrealistic expectation.
I have purchased an apartment under $250k within 10km of Melbourne CBD at the age of 21 whilst still at uni. Is it my forever home? Hell no. But it is a forced savings plan. I am now 23 and could easily buy another place due to the available equity on the place + additional savings. Does it hyper inflate like actual housing? No. But its low maintenance, low risk, low barrier to entry and provides a rental yield that more than pays for itself - this yield will likely only get greater. In addition to all this, I purchased this property because I had to live in it. I would rather live in a smaller place closer in than a larger place further out (as this point in my life..).
I saved $20k in my first job (I started working full time + 5 casual jobs during uni) - I earned $36k that year. I lived in a share house, limited my weekly spending to $100 a week and rode a small motorcycle.
By the time I was going to purchase the apartment I had about $55-60k. Which is well and truly enough for a deposit to buy a house in the outer suburbs (yes you may need to cop some LMI but buying a place is still possible). This savings only took me about 3 years (between the age of 18-21, all whilst living out of home), one of those years I only had casual employment. Every year I travelled overseas multiple times. But I barely ever ate out.
Imagine what 2 committed people could save? 2 people should easily be able to save for a deposit in 2 years.. Especially if they are older than what I was and on a wage that was more than the minimum..
Its all about sacrifices, those that complain about property prices are crap savers that are often not willing to make any major sacrifices because they have already raised the bar on their living situation (nice car, living in a nice suburb, always eating out etc). Its very hard to lower your living standards which is why its much easier to make sacrifices when you're younger because your living standards are low. Like for example, I save a much lower percentage portion of my wage than I used to because I've started to go out more, get over crap food, go to more events etc.
Its not that hard to own a house, but dream house yeah, anything you dream comes with a challenge. Its only few of us out there, rest want a castle overlooking syd harbor and having avocado for breakfast :)
*must be smashed
Glad to hear someone else using literally the same terminology as me - "forced savings plan". I know one of my weaknesses is budgeting, so the best way was to force myself to save, and at the same time hopefully make some money off it
And I know people get up in arms about this, but too many people of 20-30 waste heaps of their money on stupid stuff!!! I can think of plenty of occasions when I was 25 and I would spend $300 over a weekend on alcohol without blinking, and then go out for dinner 3x in the week. It gets even worse for people of 20-30 living near the big cities.
No need to walk, I can just call an Uber for $10.
No need to cook, I can get home delivery for $20.
No need to make a coffee at home or at work, it's only $4.
No need to get the bus to work, because I can just rent nearby for $600/week.
I know couples who were on the same salary and me and my partner, and they were still nowhere near saving for a house because it was all being spent on discretionary spending and rent, as per my examples!
I'm the first person to advocate spending money on things you enjoy and that you are only young once etc etc, but there's totally a happy medium there
You could probably just call the "fat guy" Cameron… I'm sure he would appreciate it more.
Get out of the cities and into regional areas, potential for growth is still high and lifestyle is more relaxed. A couple of houses just sold in my local area north of Coffs Harbour about 3 minutes walk to nice beaches, for around or under $500k. Depends what your occupation is with regards to work prospects though.
Your last line in the clincher. Although remote working is becoming more common, especially as we get superfast internet…
The other side of the coin is you don't actually have to live in the house you own, you can still rent and work elsewhere.
"as we get superfast internet"
you mean crippled FTTN crap ? that you'll get dropouts/1mbps if your 100years copper line went shat ?
Mmm its an interesting one.
I've just sold 2 Sydney properties (purchased with a friend 8 years ago), we walked away with the profits 3 months ago, and i've purchased a new property with my fiance.
The key - scrutinise what you buy. The properties we bought were heavily researched, and were purchased with resale in mind, even though we sold 7 years later.
We bought when we were 23. Our combined salaries were under $100k gross, and our loan was ~95%. We wanted to get out of the rent race, so we sacrificed to buy a 2br outer CBD apartment. Before you say prices were cheaper then etc etc, yes, but our interest rate was 7.8%, compared to the 3.64% my current rate is. We paid $515k, put some elbow grease in to improve the value. Lived there for 5 years (was tiny for 2 guys, but we dealt) and then rented out for the last 2. We used the equity to purchase a larger 2br townhouse in the lower north, had strata and some waterproofing/cosmetic issues. $50k and 2 years later, both properties sold and we walked away with nearly $1m profit between us.
Alot of what that guy said resonates with me, but the one fact i cannot agree with, is price will NOT always increase… we just simply cannot be sure!
Quite simply, it is affordable if you make some sacrifices. Forget about the 20% deposit (just stomach the LMI tacked onto your loan, i am sure the value will increase by 50k over 30 years).
Property Value: $500k
Loan: $470k
LMI: capitalised on loan
P&I pmts: $3,500 per month
Salaries $~100k compbined
Property Value: $1.3m
Loan: $950k
LMI: N/A
P&I pmts: $4,500
Salaries $~200k compbined
So yes, we have a larger deposit, and P&I pmts are an extra $1k a month, but our incomes are ~$2k per month greater than they were 8 years ago.
If you want to own, sure, you will need to make some sacrifices, and you need to accept quite a bit of risk. Its probably harder to buy now than it was 8 years ago, but theres a way to do it, just change your expectations (and stop complaining!)
Oh, and no help from parents (ever, for either of us).
Congrats on your approach. Great work.
To be fair, (I also benefitted from the property boom buy buying in 2012 and selling in 2017) you buying 8 years ago isn't quite the same thing. The prices had been stagnant for a while and you've experience some humungous growth which would have come about regardless of the renovations, so i hope you acknowledge there was still a heck of lot of luck involved. Not trying to undermine what you achieved
I like this guys attitude, but a few points:
1. Quote: "But (your house) isn't going to go down. And if it does, we're all stuffed."
If your banking on an investment to rise in order for you to keep your head above water, you are playing with dice.
2. This owner is a early 30 year old, selling the dream that 'I did it, it's not impossible'. I agree that it's not impossible - but it's a lot harder to buy a house now than when he began. If the owner wanted to start again, he'd be living 1.5 hours away from the city, not 45 mins.
3. Smashed Avo? c'mon this was a joke in a newspaper column over 12 months ago and has continued to be repeated as fact.
I would watch this show though.
Also on a serious note:
It can still be done just needs brains and research. Or should I say it cannot be done like 8 years ago, but money can still be made.
I think this video shows both sides of the issue very well,
The guy with the beard shows how easy it is to accumulate properies with little investment once you have equity in the first one. In doing so creating more pressure on affordability, whilst getting himself heavily in debt.
The second guy, is typical of a lot of people his age, wants everything and feels it’s society’s fault his doesn’t have it. he would rather live beyond his means than make sacrifices, like driving 45 minutes and living in a small house. He gave up all his indulgences and he saved 5k in twelve months, $100 a week? I doubt it.
You can see it. The guy with the beard has a plain shirt, and the other guy looks to have a flash jacket, earring, hair product etc.
It also comes from your background/culture too. If you learned from your parents that you don't need flashy stuff, but should buy a basic house to live in until you can afford better, you'll probably do the same. If your parents always had a new car and flashy clothes it's going to be harder to break out of that mould and scrimp and save to get a deposit.
I can see it a lot. The friends we go out with that pay for parking and buy several drinks and food at the footy 'can't afford' to buy a house. My kids have to walk from free parking and suffer though dad refilling their water bottles at the bubbler (brought into the ground empty) and bringing in their food from the supermarket, but we are comfortable in our own home, which is pretty much a dream home for us (waterfront would cap it off).
prices will always go up?
the graph always in boobs shape ,
and you only motorboat boobs between the valley , that's when you're buying.
don't buy-in on licking titties.
BTW, can anybody point me to a more or less reliable Sydney (and other Australian cities) real estate price graph? Are there any that have data let say starting from 100-150 years ago?
It was only 50 years ago that all purchases were in pounds :)
Hmmmm… how many on here would have multiple properties and therefore be eligible to answer your question?
I only have one :/