For the under 30s - how I got my house

[rockingham178]

On the suggestion of moving to where prices are more affordable, I'm just now looking at my local real estate paper and, just as an example - there are plenty like this - is the following:

Near new 3 bedroom plus study
2 Living Areas
Ensuite to main bedroom
Rendered Brick
Double Garage
Fenced 853 sqm allotment

$298,000.

It's in a beachside suburb of Hervey Bay, a fast growing, beautiful town on the Qld coast, about 2 and a half hours north of Brisbane, population a bit over 50,000.

Julia

Hi Julia
What is it with Hervey Bay.....sooooooo cheap. Just looking at a 5acre one on the web with coastal views on a hill for $650k. That is ridiculously cheap for acreage on the caost like that and the houses in the burbs but still coastal for around $220k! This place is a gold mine except for one thing....a lot of places for sale. Why the sell off in seemingly such a good location on the coast? No employment possibly? I need to research this place for sure...

 

[numbercruncher]

Hi Julia
What is it with Hervey Bay.....sooooooo cheap. Just looking at a 5acre one on the web with coastal views on a hill for $650k. That is ridiculously cheap for acreage on the caost like that and the houses in the burbs but still coastal for around $220k! This place is a gold mine except for one thing....a lot of places for sale. Why the sell off in seemingly such a good location on the coast? No employment possibly? I need to research this place for sure...

Yes I believe second highest unemployment rate in the Country (alot by choice), Low Wages, Seasonal work (Picking, Whale Season), No Industry, and yes alot of Realestate for sale. I imagine alot will sell in coming years as boomers discover it and retire there.

 

[rockingham178]

Yes i beleive second highest unemployment rate in the Country (alot by choice), Low Wages, Seasonal work ( Picking, Whale Season), No Industry, and yes alot of Realestate forsale, I imagine alot will sell in coming years as boomers discover it and retire there.

Yes I agree....PPL like me

This is just unbelievably cheap I could sell 3 properties and buy a street in Hervey Bay on the coast!....bye...I'm think I need to go on a 'holiday'..... to 'look at the scenery'.....I live in WA and al I know about this place is Fraser Island has great fishing, dingoes and you can catch muddies in your backyard with a place on the creek....love it!

PPL are going make some very big $$$ by buying into this as long as you can aford to hold until the retirees realise what the heck is going on.....amasing stuff!

 

[nizar]

I totally agree with nomore4. It was never easy for anyone. You think it was easy for me save my money?? NO, i don't think so. Its through hard work and dedication and learning about the share market at a young age. Ive done this because I don't want to be left out of the next property boom like my parents did. Back in 1986, a 3 bedroom house only cost $80,000 in the city, if my parents were more investment savvy and bought a few of these we'd be millionaires by now. But in those days they thought it was too expensive. If people always have the perception that houses are overpriced, they will never get anywhere. Who knows when the next boom will be?? Property will never be too expensive!!
If you're worry about your kids not being able to afford a home, think twice. They are in a country that provides quality education and excellent living conditions, they will never starve to death if they work hard and earn a uni degree!

Exactly.
My friends uncle bought several blocks of land in the Mt.Eliza area in the early 80s for about $20-30k.
He's unloading them now for the 400-500k mark.

I commented that he did well, but my friend made a good point. His uncle didnt get bargains. He paid market price at the time.

Rather then complaining, just work hard, save, and you'll get there. And dont put it off. Property generally gets more expensive over time.

And if property does get cheaper, its probably when you DONT want to be buying. Remember those poor Japs, they started buying what they thought was a dip at around 1990, after all, property prices had gone up something like 100x over the last 30 years. But it was actually the beginning of the end, as the economy collapsed.... and then their bargain became more of a bargain, and so on.... like those people that average down.....

 

[robots]

hello,

normally after around 6-7yrs of home ownership the cost of owning will be pretty much the cost of renting the same house

from this time on you kill anybody who is renting, you own the property and you put your disposable cash into other assets just like the renter

thankyou

robots

 

[nomore4s]

Yes I agree....PPL like me

This is just unbelievably cheap I could sell 3 properties and buy a street in Hervey Bay on the coast!....bye...I'm think I need to go on a 'holiday'..... to 'look at the scenery'.....I live in WA and al I know about this place is Fraser Island has great fishing, dingoes and you can catch muddies in your backyard with a place on the creek....love it!

PPL are going make some very big $$$ by buying into this as long as you can aford to hold until the retirees realise what the heck is going on.....amasing stuff!

Yeah it will eventually go off, which will give employment a boost eventually as well. It's probably a bit short on infastructure at the moment as well.
My other half owns a house there, she got it for just over $100k about 5 or so years ago, and it's only a couple of 100m from the beach.

 

[nioka]

Yes I agree....PPL like me

This is just unbelievably cheap I could sell 3 properties and buy a street in Hervey Bay on the coast!....bye...I'm think I need to go on a 'holiday'..... to 'look at the scenery'.....I live in WA and al I know about this place is Fraser Island has great fishing, dingoes and you can catch muddies in your backyard with a place on the creek....love it!

PPL are going make some very big $$$ by buying into this as long as you can aford to hold until the retirees realise what the heck is going on.....amasing stuff!

Sounds like realestate agents talk to me. I'VE BEEN THERE. I've lived there.
There are nice places there but the cheapies are cheapies for a reason.

 

[rockingham178]

Sounds like realestate agents talk to me. I'VE BEEN THERE. I've lived there.
There are nice places there but the cheapies are cheapies for a reason.

LOL...I am so far away from being a real estate agent it isn't funny....

I am an active property investor though and I seek out locations just as this. Buy when unpopular, provided the place has some sort of future. As someone who is retiring in 5 years this is amasingly cheap for coastal living.

Nobody wanted to live in Eden NSW, or Manduarah (especially Falcon) in the 70's and 80's.......now look at them.

one word ....vision

 

[Julia]

The comments about the unemployment rate in Hervey Bay are quite correct. I think it's about the third highest in the country.
And yes, definitely it's becoming a popular place for retirees. About five years ago there were only three retirement villages (or "Over 50's Resorts") here, and how there seems to be a new one advertised about every couple of weeks. And very upmarket they are too with really fantastic facilities - indoor and outdoor pools, restaurants, bars, putting greens, bowling greens, cinemas etc etc.

So there are heaps of retirees who have sold properties in the southern states, moved here, bought a better home than they owned down south, and have plenty left over to travel.

There is very little industry which I suppose explains to some extent the unemployment problem. Most jobs are in tourism/hospitality.
The other factor affecting the unemployment rate is that people on welfare in another area who have no real intention of looking for work think it would be nicer living here than in a city.

Plenty of work for builders and other tradies.

Downside for the retirees, though, is that major medical needs require travel to Brisbane, e.g. radiation for cancer etc. As in all regional centres, the best medical specialists are rarely attracted to the reduced facilities in regional hospitals and prefer to stay in main centres where their careers are better advanced amongst peer support and further education.

Another consideration if moving from a main city is relatively little in the way of cultural pursuits. No symphony orchestra concerts or full scale ballet etc.
There is a branch of USQ which is growing every year.

One of the biggest plus factors is a very supportive and active community, far more so than I've ever found in a big city. There is also a very pro-active and capable local council.

Many kilometres of beautiful beaches, much of which is dog friendly, calm safe water, no stingers, and a wonderful climate make up for the disadvantages of being away from a city.

Julia

 

[rockingham178]

Julia....even if you were/are a real estae agent you have sold me....not that I have anything against REA.

USQ...... I studied my management post grad with USQ. Good memories...made me work for it though...lol

Hervey Bay deserves some closer scrutiny for me. I live in a semi-rural environment now and have no desire to ever live in a city anywhere again and I need acreage on the coast (we have large dogs and horses and I just love fishing).

I have been having a little look at properties today for my next entry (thus sitting at a PC for hours on end...sigh) and this may be very timely....off to do some research.

For young people in mining work....this is possibly an excellent opportunity at low entry into property and just do FIFO....then buy lots more like I do.

 

[REA]

The Illawarra south of Sydney has cheaper real estate. From Wollongong it takes 1 1\2 hours by train to Sydney and the same time to drive. There are no traffic jams such as you see in western Sydney.

A two bedroom unit in Wollongong starts from about $190-200,000.

A flat block of land south of Wollongong from $195,000.

An older home in a not so popular suburb from $270,000 some poorer homes even cheaper.

Most of these vary from 1km to 6km from the beaches.

The first home is never the last.

 

[theasxgorilla]

Interesting post, Riesling. Without spoiling the party, can I just mention that many credit cards will now not let you roll over cash advances and give you an interest free honeymoon. I've spoken to a few people who thought they would try that trick and got burnt when they were paying the full rate on cash advances from day one.

Perhaps you'd like to mention the ones that don't work. I can tell you that with HSBC and ANZ this is NOT a problem.

 

[stockpanther]

Yes I believe second highest unemployment rate in the Country (alot by choice), Low Wages, Seasonal work (Picking, Whale Season), No Industry, and yes alot of Realestate for sale. I imagine alot will sell in coming years as boomers discover it and retire there.

Can't be unemployed by choice. If you choose to be unemployed, technically you are not participating, hence you aren't counted in the unemployment rate...correct?

 

[numbercruncher]

Can't be unemployed by choice. If you choose to be unemployed, technically you are not participating, hence you aren't counted in the unemployment rate...correct?

Correct !! I saw a thing recently about the sheer number of non participants in Australia atm, was like over 20pc , amazing.

 

[Freeballinginawetsuit]

Correct !! I saw a thing recently about the sheer number of non participants in Australia atm, was like over 20pc , amazing.

In the end partaking in non participation has its downfalls, especially when you begin participating again.

Most would tend to cloud thier level of participation.....if they are able too, this tends to become easier the more you have and totally dependant on the government at the time

 

[rockingham178]

Correct !! I saw a thing recently about the sheer number of non participants in Australia atm, was like over 20pc , amazing.

Yes and we who chose to participate pay for this laziness......

 

[Stan 101]

Perhaps you'd like to mention the ones that don't work. I can tell you that with HSBC and ANZ this is NOT a problem.

Sure, the one's in question were bankwest (which I thought were now owned buy HSBC????), ANZ as I have their pamphlett in front of me now, Westpac (from memory) and up until recently, Virgin. Called them last night and they no longer have that policy.

I'll happily change the OP.


Cheers,

 

[Kipp]

What are the age brackets for GenX and GenY?

Niz- GenX Finished with those born in 1977.
GenY 1978-2000 (I just made it)
and after 2000... I dunno, GenZ??

(Methinks you are from Y as well?...)

As far as this post goes- I am intrigued by all of the stories I have of my friends that have gone to London and made a packet (in seemingly ANY field) my experience in Scotland has not been so positive (only 6 weeks now) but it ain't quite so easy up here... I too am in accounting (though only as an Assistant) and I make a paltry 8quid an hour... retrospectively Melbourne was a much better wicket. guess I'll be heading to London soon like every other Aussie.

And yes, nice story Riesling... I especially liked the bi using those c.cards for cashflow... if they'll offer you 30K interest free it'd be crazy not to take it!!!
Cherers

 

[Kipp]

Dare anyone think, just maybe, that...

House ownership is overrated?

How do you make your investment decisions? Based on what gives you bang for your buck, right?

If you can get better returns on stocks, why buy a house and have council rates, land taxes, independent valuation fees, legal fees, stamp duty (probably not if you build your own), body corp fees if you get an apartment/unit, financing fees and interest on a loan if you get one, and all these before mentioning putting up with inefficient tradies if the s**t hits the fan? Oh yes, I nearly missed out the part where you actually buy the house: dealing with less than honest real estate agents!

Any other negatives I missed out on?

Yeah... one more- when the market turns sour, it's much easier to liquidate your shares (in 5 mins) than selling a house which can take upwards of 6 weeks, by which time the bear has already settled in...

 

[BradK]

Hi all,

Im off to London at the end of the year with my wife and 1 year old. I work as a school teacher and while I will not clean up in that field, it will give me the opportunity to visit most of Europe and some of the mid east. Some posts here have made me wonder how I can get hold of that 30k GBP interest free for investment purposes.... hmmmmmm. While I will not get a big wage in the UK, I am always interested in what the 'system' offers and how I can financially benefit from it - and I am a so-called 'left wing HSC English teacher!'

On to houses... my experiences

I am 31 and bought a unit in 2002 with the paltry deposit of $1000 in total (lucky for me, I have a mate who is a conveyancer!). I sold it in March 2003, and got into my house at the death of the boom on a 'silly deal'. Some say the boom has a little more dying to do... but, we'll see. So, I have been fortunate and can now move to England and rent out my property with the rental covering the repayments and rates.

However, I can say that - what is it worth? I do not think that sky price property prices benefit anyone. Even if I move from my current house I need to step across to something else - equally as overpriced.

And of course the costs associated with moving including real estate agents fees, legals, stamp duty on new property, loan switching fees, etc are eqivalent to 1500 BHP shares.

The current 'housing affordability crisis' has forced me to some real thinking. I have come to some summary conclusions including; IF THE BANKS ARE ENCOURAGING YOU TO DO SOMETHING IT ONLY BENEFITS THEM! and there must be another way. I spend alot of time with a pad and pencial dreaming up scenarios to reduce my mortgage or work out the affordability of this or that without becoming a slave.

The strategy I have used (and I am fortunate enough to have the equity for this) is to have drawn down some money and write covered calls with the money in order to pay the principal and interest on my mortgage. That said, I am very much aware that many 20 or 30 somethings have 95% or 100% LVR's and this is not possible.

Look, I am not saying that property is bad. Clearly, it has been good to me - and provides a great basis for getting finance. But, I am saying that in terms of money management, we must be CREATIVE in our strategy to get the dream otherwise it can really turn into a nightmare which robs our ability to live family lives, travel and be generous.

I know that these forums tend to be all about investment, but money management will make you sink or swim.

Perhaps we could all give a tip about one or two of the things we do out outside of the square which helps to achieve our financial dreams?

MY TIP:
I have found writing covered calls with my equity to pay for my property has worked for me - so far (of course this is NOT financial advise, and I work through a broker to help me achieve this and should not be taken as financial advice)

All the best - a great thread
Brad