I have a story fellow Ozbargainers.
A bit of disclaimer - I like Australian beaches, safety and lifestyle, having a full-time job and paying taxes, and not abusing centrelink or medicare sorting all my medical things overseas including eye surgery that I paid $450 this January vs. $2500 in Australia.
I came to Australia from the eastern european country back in 2010 with $10,000 aud in my pocket - spend them all in 3 months on rent, first car, groceries and basic furniture. Than I managed to find a job in engineering consultancy. So for the first 5 years I was thinking and dreaming about getting the house. Thinking of that, dreaming of my own place, backyard and barbecue on Saturdays. Now I can afford 20% deposit for some early's 7 digit property.
So I have a good question - shall I buy at all? The rent I have in inner city for 2bdrm apt with a swimming pool is only early $300's p/week. It takes me not more than 15 minutes to get to work by bicycle, have a good shower (not counting 5 minutes to save on bills). I don't spend 1.5-2.5 hours on commute and don't believe I really would like to buy a house in suburbia and have to wake up at 6-6.30 am to be on time at 8.30 in the office (now I wake up at 7.30 am while my partner makes me a breakfast).
The deposit that I have I would consider to split into more profitable higher yield investment (say about $50k), and other part into savers account with ubank or cua (2.7-2.8%) and that will help me to make more of a passive income.
The reasons I stopped looking at the buying of the property (inner city units if it is important) are:
- High maintenance i.e. city council fees, body corp, sinking fund that all add up to about $7000-8000 p/a, which is sad to see going in nowhere.
- Real estate agents and all the industry which seem to profit on hard working australians taking money as commissions, loan establishment fees and so on. All those shiny posters with smiling agents who come driving luxury bmw's and mercedeces to inspections… hate that… All the industry and those property seminars, everything…
- There is no guarantee that the unit I'm looking at (say it's early 2000s unit without lift and pool) will not go down in price and I won't be able to get my money back.Plus that buy will convert my asset into liability putting me in uncomfortable feel if I loose a job or become terminally ill.
- I think I should just rent and save money for another 15 years until I hit 50 than revoke my citizenship and take my deposit and super back home, where I can get really good apartment of 100-150m2 for cash for less than $275,000 and have leftover in cash to be able to invest overseas and have a passive income enough to support my simple lifestyle. And in case of not revoking the australian citizenship to return to Australia one day in late 60s to settle in abandoned village on seaside and live on the aged pension (just a highly unlikely option)?
- Final question - why is Australia called a lucky country? I think it is to high a price to be here. Car Rego for my Nissan is $720 p/a against an equivalent of $180 back home, internet is crappy adsl 2+ for $59.99 vs. $15 for 100mbit ethernet with optics, really cheap and fast phone plan with 4G (now 5G is coming) for $10 30gb allowance, 2% salary medicare of thousands dollars a year vs no payments at all - you just spend money on every visit when it is necessary for you and still it is cheap. Than the cost of home utilities, petrol which are much more higher.. And I'm not saying how expensive it is to go to Symphonic Orchestra performance here. So at the end of the day not much is left in a pocket in a lucky country.
Sorry if offending - it is just my thoughts and an attempt of comparison. AI think it is a good option that I have a backup plan to get to my home anytime and not to get into the hands of banksters and that thing of 2/7 capital growth dreamers. My close friends who are in a good job position also share similar point of view on how expensive everything in Australia and at the end of the day not much is left, especially in emergency cases like dental surgery or similar.
So is my situation and I would be happy to hear your thoughts, guys.