r1c1

Hi.

We're looking at moving with approx 60'000 UK pounds.

How much are others taking with them. We've done our sums and it looks like a house in a decent area would cost $400'000.

This would mean a mortgage of approx. $270'000. This seems a hell of a size for a mortgage. My salary would only be about $50'000 and OH won't be working for a while due to young kids.

Are others looking at buying or renting. I worry about renting as i'm 39yrs and would like to own my own home in time for retirement.


Cheers all.

Buzzy--Bee

You mention Brisbane and Melbourne. Salaries are often much higher in Melbourne than Brisbane, depending on your area of employment, and property is only slightly more expensive.

A house in a "decent" area of either city will probably set you back far more than $400,000 in any event, depends what you class as "decent".

$270,000 is a perfectly normal size mortgage for an Australian.

Buzzy

r1c1

If i've done my sums correct, that's a repayment of around $2'200 per month. How do people survive?

@boy

Agreed. 400k in Melbourne is looking like a REAL bargain these days...
ref the recent article
Property boom to spread to 15km from city
http://www.news.com.au/heraldsun/sto...93-661,00.html

For r1c1 - A 50k income leave you a NET figure after tax of 3,100 a month.
a 260k mortgage requires monthly min repayments of approx 2,100
That means 67% of your monthly pay would go to your mortgage repayments.

Not a burden I would like to bear....

@boy

Easier to answer that question this way - Work out the same scenarion for your situation in the UK. i.e what you would earn there in relaation to the mortgage you would would need for a decent place.

What percentage of your net income would go into servicing the mortgage in the UK on that basis ?

Remember, house prices are going backwards in the UK, and forwards here.

r1c1

That means 67% of your monthly pay would go to your mortgage repayments.

Not a burden I would like to bear....[/QUOTE]

I'm starting to feel this Oz dream slipping away. Trying to juggle finances but not looking good at the moment.

Buzzy--Bee

How about choosing a cheaper area? For instance, Langwarrin in Melbourne is still within driving distance of the CBD (1 hour) but you can get a reasonable house for 300k ish and still be 10 mins drive from the beach.

Buzzy

Timber Floor Au

My serious advice.

You are moving off the property ladder in uk.

And starting on the property ladder here.

Treat it that way, and get your feet under the table , so to speak.

Many homes are avail' in Brisbane, from the high 2's up.

Perhaps, set your sights a little lower, wait till you have become established, see how you survive, get some ENJOYMENT before the pain sets in, on a higher mortgage.

Then a year or so down the line, move to the next step !!

We did, and trust me it is dooable, and sometimes the only way... realisticlly.

Ste

wongstonn

I think the reality is the amount of money you are bringing over is in the same order of magnitude as many on this forum - of course some will have more, and some less. I my own time I brought about the same as you over, and I felt my family could afford to live in an outer suburb (my wife does not work). Many Melbourne-bound on this forum end up buying in the outlying areas - Caroline Springs, Craigieburn, Pakenham simply because of the size of the mortgage. There are a lot of very ordinary suburbs within 20km of the CBD that are ferociously expensive nowadays.

Neil

Timber Floor Au

Another angle....

Buy a cheapy, for high 2's low 3's

Rent it out, with a good return.

Then use that sweat equity to rent a place for you and your family, that is affordable and in a better area, and would have been higher value.

Geelong Gent

I agree with Steve - just to add the cost of buying and selling in Victoria is high (stamp duty) so becareful when you buy. You may find you keep the first property long term and use the equity built up to fund your own home or y
ou eventually move into the first home you buy.

Timber Floor Au

Makes sense.

You then have equity+collateral+lower initial investment+lower initial outgoings+a spare property.

Example: ( real life ) in UK

My mate at age 44 ( was in rental as an ex bankrupt )
He then bought a small house, and began doing it up..
Then told everyone him and wife were divorcing, he moved out ( as primary wage earner ) and then got a new mortgage on a 2nd home.
Him and wife then reconcilled ( pmsl )

He now has 2 houses.
First house he rents out.
Second house he refurbishes, and rents out.
Buys a 3rd house with proceeds from ( equity ) house 1 and 2, and lives in that.

Meanwhile son needs a flat, so he and son get a 100% mortgage on flat, son gets a flat mate, son then moves out. Flatmate stays on and covers mortgage !

Long Story short.

He now has 17 properties, 13 in uk.
2 in Texas
1 in Lanzarote
1 in GATTON nr Toowoomba !

The house he lives in , in uk he wholly owns now. Worth circa 400k GBP
The rest investments and rentals.

He is now 49 !!!!

All in 5 years, no shit... total asset value ( approx 4 million )
God knows what his mortgages are, but hes covered.

Example 2 ( Australia )
We work for a couple, on the southside of Brisbane quite frequently.
She is a stay at home mum, he is into cnc engineering.

They now have 9 houses, and have just been to USA< and floated back on a $500k yacht ! all paid for.
He buys in Kingston and Woodridge, EL CHEAPO , does a quick paint job, and remod job. Rents out !

He has 50 ppl after every rental when he releases one !!

Whos the prick?









ME !! I should be doing it, but aint got the bloody BALLS !

themerlin

It's not without it's risks though. I bet they're loads of people who did the same in the USA who are now in poo poo land.

You often see house for sale that have a crap paint job and are dirty, I bet you could make some money if you just cleaned and painted the place and put it back on the market.

Timber Floor Au

Yer they call them FLIPPERS in USA i think.

Perhaps we should all chip in

TrickyTree

This is what we did we bought our first place for 320k lived in it for a while and now rent it out. Bought a second place with the equity we have in that (which is also rented out) and we now rent in the Valley (Brisbane). We are now looking to get a third property (either to live in or rent again) hopefully the cycle will continue.