tictac

With the average price of a house in Brisbane making the prospect of home ownership even more unlikely to all but the already-settled or cashed-up recent arrivals, how important is home ownership to one's perception of quality of life and/or long-term future.

As I see it, recent arrivals with little or no equity or 'offshore' funds are faced with 3 options:

1/ Save, save, save until you accumulate a big enough deposit to allow for a reasonably-sized home loan and manageable repayments, but run the risk of moving farther the first step on the Australian property ladder due to spiralling house prices.

2/ Get a huge home loan from day 1, with high monthly repayments resulting in a lack of disposable income and a frugal lifestyle as a result, but take satisfaction from the fact that you own your own home which will increase in value over time.

3/ Accept that you'll never be able to afford to own your own home and rent indefinitely, building up a huge savings/escape fund from the money you'll save on home loan repayments.


What's your philosophy and what are the wise people doing????

(For the record, these are the questions I'm asking myself on a daily basis)

bcworld

I wouldn't reccomend option 1, option 2 would probably be a better choice - the property is probably rising in value each month more than you can save.

I also wouldn't bank on accumulating huge savings under option 3 - rents are going up and up and up as investors get stung by interest rates.

Buzzy--Bee

Yes.

Buzzy

Nicstids

Move somewhere else in SEQ other than Brisbane is another option!
Median house price here is $250,000 and doesn't seem to be any shortage of jobs......

sherie_in_oz

Some are investing in cheaper areas even if they live in SE QLD. You can still rent here n look at investing in cheaper places eg Beenleigh, Coffs Harbour, Rockhampton, Adelaide and Tassy. Do your research into property investment as the growth can be quicker and greater in these other areas and you often you only need 5-10% deposit. A friend bought $98,000 home in Tassy a few weeks ago and they expect to make $50k with a bit of a reno.

Look at finding some way of making money so you can save whilst renting, maybe go for a cheaper rental and put the extra away each month and move gradually into where you want to be. Not many people can afford what they want I am just the same, but we are trying to find ways of working towards it.

Still think this is the best place in Oz and would rather be here. Home ownership is not essential to be happy...you can be happy inside because you luv being here
Sherie

longreach

This is a great reply!!

Some clients of ours literally have 10 or more investment properties dotted all over the place and live in a 'modest' rental. They realise that in 5-10 years they will be able to liquidate and buy their dream home outright!

It's certainly an interesting strategy that I would look at if I was in that situation.

Mark.

Vim Fuego

No.

Your fundamental level of happiness (or 'level of fulfillment' if you prefer a longer-lasting term) should not rely on any material gain or possession. Migrant or not.

In my opinion, etc, etc.

Speargun

With ever increasing interest rates...wont house price growth slow or stop altogether?? On reflection in the UK after a flurry of interest charges prices have started reversing here - and rates are still a lot less than in Australia!

moneypenny20

What he said

asprilla

couldn't agree more. owning "stuff" whether its a home or a car, will not make you happy. It'll only make you feel happy for a while, before you start asking yourself "what else do I need to buy to feel happy?"

framac

Why only SEQ. Does the question not apply to all Aus or anywhere in the world. It did help my OH but might not be the same for others. Downside could be that you buy a home and have the debt hanging round your neck when further down the line you decide that Aus or the area is not for you. Will you take a huge hit financially. Sorry tictac, that was vague. Personally we bought as we didnt want to give a landlord $350 a week when around $500 bought a place.

Nerine

I'd seriously consider doing that too once we have PR. Excellent idea.

tictac

Sounds like a good plan

Now, where to start........

comet555

Not for everyone. Unfortunately we're stuck living in areas where there are mining jobs. Mining areas almost always are expensive due to the mining boom. So for us, it's not an option

BadgeIsBack

Agree that materialism is not great, but stability is key, and home ownership is vital.

I couldn't sleep knowing that I could be out of a place in a year. I want to be able to ''grow'' my own land, shape it's destiny, bring up kids in a home in a house. It's the fact its got nothing to do with money I like - and everything to do with the rest of your life.

And it also means I have a roof over my head when I retire.