gobbyjock

We too don`t have a house to sell in the UK, however we will have a pension lump sum to help us on our way (though that won`t go far by the time we pay out for flights, shipping, car and all the other set up fees involved in transporting you life). We had only ever wanted to buy a wee 3 bed do up however even that seems to be beyond our grasp now - apart from anything there just doesn`t seem to be the houses available for sale. What we may do is end up buying a wee unit or just renting for a year and see how it goes with the possibilty of moving to another part of OZ if home ownership is not a realistic possibility (I really am fed up renting and need a home of my own). The way I look at it we`d only be able to afford a 2 bed house where we are in the Uk anyway and if I lower my expectations of what I can have in Perth I might even be pleasantly suprised if things go in our favour. It is pretty scarey though.

sunbather

Things are not as bad as it always looks. Most people are snapping up the 4x2s, so if you want a 3 bed you should be fine. Also very often the 3 beds are on older blocks which are generally larger than the new builds, so you could well get a decent garden. There ARE properties available here, and even the so called *dodgy* areas are not as dodgy as in the UK and have loads of nice parts in them.

Jokat

Gosh I'm sorry Lynn, when I've re read my post, I dont know what I must have sounded like! We're not buying the block just to sit on it - we're renting and would love to build on it, but can't afford to! Its just that we decided that it would probably work out cheaper for us long run to build rather than buy something ready made, so that we can put a lot of the inside in ourselves. If we sell it will be because we have to, not because we would choose to! We too are putting a deposit down, and are borrowing the rest - its just that we're not borrowing as much as we would have to if were to buy an established house in the area where we're living now and want to stay in. I too only want a home (of modest proportions!) that I can enjoy and more importantly afford to pay for. Sorry if I gave the wrong impression!

movetoperth

Hi Jokat

Sorry i just presumed that as you were going to buy a block and didn't know whether to build or not that you already had a house, thats me just thinking of the way it usually happens, but you have thought one step ahead which is great

Many people would just have sat there and said we can't buy what we want so we'll just have to rent but you have given yourselves a great start. I now of people (several of them) who have paid a deposit on a block and won't get the titles for a few months by whivh time the value will have gone up considerably, a couple of them have already agreed to sell them at the new value but the others are like yourselves in a position where they can't fund the build but due to the rise in land value while they wait for the titles the equity in the land will help fund their builds. Plus you save on a shed load of stamp duty too.

The only down side is that you have to pay both a mortgage and rent at the same time so i guess the sooner you can build the better. But it is certainly a less expensive way to go over buying established.

I hope it all goes well for you.

Lynn

geordie downunder

The houses were not cheap 20 yrs ago,houses are never cheap.An old jock i have a beer with wanted to buy a house /land package in City Beach around 1968,the bank would not lend him $5000,his wages at the time working as a b/maker were 90 cents an hour,the bank wanted 25% deposit and there was no way he could ever save up $1250.An apprentice a few years behind me bought 2 flats in North Shields around 1972,he borrowed 4500 quid,I wondered how he slept at night with such a huge debt.at the time in the shipyards he probably took home around 23 quid a week.First house I bought in Oz cost around 4 yrs wages,the same house can still be had for around 4 yrs wages based on husband working in a trade and wife doing part time work,if hubby works o/time $80,000 is a well within reach wage so it is still 4 yrs wages.People here tended to work 56 hrs a week then,I hated it,but it had to be done.Nothing pissed me off more than working on construction sites in the North west,7x 10 hr shifts 8 weeks on 1 week off,I was like a walking zombie,mortgage had to paid,interest rates were fixed by the govt at 12.5%,newer buyers were on variable rates at around 14%,then we had Keating jacking rates up to 19%.In 20 yrs time the houses will look cheap at todays prices (probably).As monty pythons four yorkshiremen would say "you try telling that to the young people of today".You just have to bite the bullet and spend the money.The standing joke back then when people were buying new house /land packages in the outer suburbs of Craigie or Greenwood in the north,Cannington and Kenwick in the south was, the houses look nice but they have no carpets and people sit on orange boxes,the satire being it was true.A brand new house sitting on a little piece of desert,took people ages before they could afford to put fences round them,it all works out well in the end,you just need to put the work in.

BadgeIsBack

I've often wondered this. You hear old codgers talk about how 'expensive' - all GBP3000 in 1960 - their first house was. "It was a lot of money in those days".

The only way to know is to look at income multiples - or a shopping basket of goods but other factors in lifestyle have also changed this. A car was more then etc.

Our parents were much happier at settling for unrenovated, unfinished homes too and not assuming on full lounge suites and a TV straight away.

But TVs are cheap now anyhow.

I think it is fair to say that houses are defo expensive now though. No two ways around it. If you did buy 7 years ago, you'd say they were cheap then. I bet your income(job for job) hasn't tripled since then. I paid 1998 prices for my home and it does feels cheap.

Zebra4

I think it is fair to say that houses are defo expensive now though. No two ways around it. If you did buy 7 years ago, you'd say they were cheap then. I bet your income(job for job) hasn't tripled since then. I paid 1998 prices for my home and it does feels cheap. [/QUOTE]

Well, I did buy 7 years ago. No 1st time home buyers grant, poorer exchange rates, lower house prices in the UK and yes my income has gone up since then.

henke

If you're committed to moving to the other side of the world anyway, perhaps a step backwards for a few years to fufill the dream might be worth it?.
we've moved up to the Pilbara for a few years to chase the bigger dollars, on my bigger salary I've bought 2 houses in Perth, both gaining equity. Both rented out and reducing my tax bill. In 2 years We'll move back to Perth and sell one, live in the other. The mortgage will be manageable on my smaller salary and living the dream will be a reality, pool and all.

Not great for the 2 years, but in the long term well worth it.

( and you'll REALLY like Perth after the Pilbara!!!!!!)

H

BadgeIsBack

So has mine in 7 years - but it hasn't tripled - if it has then I've gone up the career ladder as expected. if I was a 30 something back in 1997 I would have been better off then than a 30 something now. I could afford my first house - just - in 1999, someone with the same situation, experience, quals and (expectations) couldn't now. That's what I mean.

Exile

Very true. In Perth these days, there are people who could have afforded it a year ago, but they can't now.

geordie downunder

Just shows how stupid old people were when they were young.Wouldn't you think they would have bought 5 or 6 houses when they were so cheap.Fortunately, in the future, when the young people of today are old,and the same statements are made again (look how cheap houses were in 2006,or even 12 months ago) the young people of today will be able to say "I was going to buy 5 or 6 houses houses when they were cheap back then,but the price of bananas and lettuce were screwing me to the wall".

temptininnit

What is a realistic price for a decent 4 bed house in a decent area in Perth now?

I look at the real estate sites but since I have no knowledge of the areas I am unsure.

Perthforme

Starting price of 400k for the outer burbs but , closer to the sea or the city $$$ add more $$$

BadgeIsBack

Anectodal evidence from some East side investors.

They are getting out of Perth and into QLD and other areas. Even Melbourne again...

temptininnit

I live in a crime free (ish) area in the UK, I have a nice 4 bed detached. I'd be loathed to move into a worse situation. We are planning on being over there in the new year so I will have to monitor the situation and start looking at likely suburbs.

What a nightmare!