BE was a great resource in 2007/8 when our trip to Aus was just an idea that later became reality. On arrival we tried to help others on BE who were considering the move and needing info, but we were soon caught up in life and have not been back on here since. Until now!

I was always a bit amused by the Ping Pong Pom idea at the time, surely it's just a case of 'make up your mind'? OK maybe not haha...

We left the UK as newlyweds with no plan (except 457 and job to go to) let's give it a year. After 5 years we had kids there, lived in 4 places near Melbourne, and bought, renovated, and sold a house. We are now back in the UK for a couple of years. There's a question (or two) coming soon!

One major reason for leaving was that despite having two good jobs, the property prices were not just high but rising at a crazy rate. At one point they were going up so fast in some eastern suburbs of Melbourne that the houses were earning more per day than the family inside! After selling up in a cheaper outer eastern suburb (Rowville) we rented and went to many auctions just to see a couple of disinterested bidders (often Chinese) pay very large sums for average houses. I have since read that parts of the USA and Vancouver have had a similar thing happening. One fairly basic house at the end of our street in Mount Waverley went for 300k above the guide price of 600k. We did not want a millstone mortgage in a housing bubble, if that's what it was. 900k for a wood house on a small site next to a freeway!

We kept our little terraced house in England, and are back there. Working and doing fine but wondering if we can make Aus work again, buy a house and settle down. So here's the question if anyone can help or advise...

We have citizenship, some modest funds as a deposit and to get setup. We have health and trade skills, still registered in Aus so no barrier to work. Where (ideally VIC) could we live where the kids will be happy and fairly well educated, where there is plenty work but house prices are not daft. (We already considered Ballarat when we were there but still too much mortgage). Happy in town or country as long as not arid or overly hot, coastal would be perfect! Alpine areas fine. Thanks in advance, sorry for long post!

Just alluding to your thread title, what do you think will be different this time? You say you moved back because of property prices but you were on the ladder so what else was it?

I don't know anything about places to live in Victoria.

Why put property prices at the front of your decision? The market it what it is. If you want to jump in, jump in. Interest rates are low and therefore property in places like Melb and Syd will grow as the job market is very strong.

There is renting too. Lots of benefits to be had by renting.

If property is really your bag do what others do and buy an investment in place where they can afford then live and rent in places you want to live.

In Reply To Bermudashorts...

In a nutshell, we bought when we had one baby, in a place we could afford to buy while still having enough income to visit the UK every couple of years and have the odd holiday in Aus. When it came to schooling, we were warned away from the two local schools by a number of local people, independently of each other. And to get the kid(s) into a 'good' school we either needed to live in the catchment (high property prices) or rent there briefly (massive rents and lots of competition plus the reality of travel from an affordable place for 15 years) or lie about our location (not our thing).

You are correct. We were on the ladder, but the ladder included crappy schools and bad neighbours.

Also, we were advised by the local real estate people that there was a regulation preventing properties being advertised more than 10% away from their expected sell price. Stupidly, we thought it would be easier to rent in the area near the 'better' schools as we could afford the houses there with a 10% hit. We now know just how dishonest the agents were, having seen so many places sell for 20-40% over the guide.

Still hope to go back though, a bit wiser this time hopefully :-)

OK, but Melb, Syd, Vancouver, London, parts of LA and NY have been overpriced by international investors piling in. Those investors have started to pull back. I don't want a 750K AUD mortgage (NAB will happily give it to us) on a property realistically worth 500, while interest rates are at record lows. Rates will only go one way. And there's no guarantee of negative gearing in Aus carrying on?

What we really want is a family home, where the kids can grow up. Where we are allowed to put a picture on the wall without written permission from the real estate people. Where we can stay as long as we choose. Silly property prices and renting are less likely to deliver that, but yes there are some benefits. We rented 3 of our 4 addresses in VIC, no problem.

Well you either have to change your priorities or opinions on property otherwise you won't be moving to other popular cities. Prices aren't silly. They are just market rates.

Yes rates can go up but I can assure you, you will be one of millions globally who will come unstuck by that.

For what its worth, Vancouver has just had a property crash. 15% foreign investor tax. Melb now has foreign investor tax (smaller amount) so does Sydney. The Chinese are finding it more difficult to get money out of China, local banks aren't lending to them, and they have extra stamp duty.

Negative gearing changes have never touted to be be retrospective. But never say never.

This discussion will evoke the same vehemence as the one about Cain's wife, my 2 cents - if negative gearing is removed, it will not have a negative effect on property prices as 1. People who already own investment properties will be grandfathered. 2. It will not affect people who are neutrally/positively geared, which is a high proportion of investors.

A few rises in interest rates will have a much larger effect on the market.

Yep

Whilst those who have existing properties are unlikely to be affected by NG removal or reduction at tax time if there is a grandfather clause, they will be unlikely able to sell and re-buy other properties meaning they hang on to what they have, meaning less stock which will pump up prices. This off course may be neutralised by less investors looking to buy.

High taxes at purchase time and higher interest rates are really the only lever for controlling property prices outside of an economic downturn.

Interesting times in Vancouver and in the UK

Too soon to judge tax on foreigners, B.C. says as house sales stall | Vancouver Sun

https://www.theguardian.com/commenti...ces-referendum

Prices in Vic have risen sharply since you left, so, you would be in an even worse position than when you left.

So has the UK. Poster already has equity in property so it doesn't matter.

I would have suggested Ballarat but if you couldn't have made it there then, I doubt you would make it there now.

You could look at places like Orbost where, from the RE sites property looks dirt cheap but, discussing this with my son (for other reasons) his appraisal was that it's lovely, rents are cheap but there's little work, it's one of the ice centres of Vic and the teenage pregnancy rate is through the roof so I'm guessing that low property prices reflect environments you probably wouldn't want to raise kids in.

Of you want to give it another go, so the same as you did before - rent out your place, take a career break and see what happens.

Paying crazy prices for real estate certainly does matter. As for equity in property in UK, it depends largely to where exactly in UK. Melbourne over the time has seem very large increases. The point returning to Australia and being mortgaged up to the gills being..?

We were caught out there, bad decision in hindsight to sell up and rent elsewhere. Should have rented our property in VIC out to keep a foot on the ladder.

We really liked Ballarat, the affordability thing for us is about not having to both work silly hours just to pay the mortgage. It's looking like that might be something we have to do for a decent place to live.