Homes officially out of reach for under 35's
- Thread starter haydos1979
- Start date
Our son at age 22 bought his first unit. One year later, he is about to move into his first house, half share (renting out the unit). It can be done, even on a salary less than "average".
You just have to lower your expectations (as we all had to when we first bought) and compromise, and work and spend to a budget.
You just have to lower your expectations (as we all had to when we first bought) and compromise, and work and spend to a budget.
There is no problem buying a house for under-35s. My husband (33) and I (29) bought our first 3x1 house in 2010 with 20% deposit and have since nearly finished renovating it, put 20k additional into the loan, eaten well, lived a good life and even been on a few holidays. We earn 100k between us (he is a scientist and I am doing my PhD). We both went to uni as mature age entry students (he finished 2006, me 2009 before going back 2011).
The secret is to stop whinging, stop buying stuff that you don't need, budget, spend wisely and save. Tried and tested for many years, but doesn't make a very exciting story for the news!
The secret is to stop whinging, stop buying stuff that you don't need, budget, spend wisely and save. Tried and tested for many years, but doesn't make a very exciting story for the news!
What about the poor buggers over 35?
As most mortgages are for 30 years, buying at 36 will mean technically they will still have a mortgage at 66, after retirment. So lenders need to see an exit strategy. The problem becomes worse the closer you reach retirement age, and the less super and other assets you have..
As most mortgages are for 30 years, buying at 36 will mean technically they will still have a mortgage at 66, after retirment. So lenders need to see an exit strategy. The problem becomes worse the closer you reach retirement age, and the less super and other assets you have..
Yep I bought my first property with an income under 30k PA
looked at 1 last week 210k rented 300 per week 1 acre block can be split into half acre blocks maybe 1/4 acre.
population approx 60,000 many more like this around atm...
Question on number 2, Not struggling? 105K P/A approx 75Kpa after tax I imagine would be reasonably generous.(with family tax benefit).
Repayments on 460K mortgage? 32K just in interest.(let alone any principal) so if they tip in a tiny bit more to actually pay down some debt and half of their after tax income is going into their house.
Then they have to feed, school their three kids, run prob two cars? All on 35-40K per year? Sounds tight, once you take out groceries, a little entertainment, a little sanity time off. Not super comfortable.
6 years to earn 100K in equity too. doesnt sound huge for a family home. might have been easier to rent and save in hindsight there....
b8, with regards to your response to the following comments here
with this comment......
Tax payable including medicare levy based on combined, but two single tax payers earning $50 & $55k is actually only 20,175, meaning $84,825 net pa. No family tax benefits taken into account here.....
You can get a mortgage today at 5.99% fixed for 3 years, and on a mortgage of $460k, P&I payment for the year is $33,060. Given the traditional concept of 1/3 of gross income being taken up by the mortgage, then 33,060/105000 = 31.5%.
What's out of the ordinary here?
with this comment......
Tax payable including medicare levy based on combined, but two single tax payers earning $50 & $55k is actually only 20,175, meaning $84,825 net pa. No family tax benefits taken into account here.....
You can get a mortgage today at 5.99% fixed for 3 years, and on a mortgage of $460k, P&I payment for the year is $33,060. Given the traditional concept of 1/3 of gross income being taken up by the mortgage, then 33,060/105000 = 31.5%.
What's out of the ordinary here?
Thanks James...and good on ya Mate!! Well done, you'll go places for sure.
Barney8, my household lives the lifestyle of these north Brisbane families.
Everyone we know who lives at Caboolture and North Lakes tends to work in the local area, rather than the city. Transport costs are minimal, especially with no parking costs and driving ten year old cars. Entertainment for us is a DVD or a visit to the movies on cheap Tuesday. Walks in the park are free, so are visits to the beaches. The free pool at Redcliffe is to die for if you dont think about who else goes there, and we get cheaper 'locals' entry into Dreamworld and the other Gold Coast theme parks whenever there is an excuse for a really big day out.
Hubby and I sink nearly $20K a year into the mortgages from our combined incomes in our day jobs (before neg gearing), which is much lower than $100K pa in the examples above.
Everyone we know who lives at Caboolture and North Lakes tends to work in the local area, rather than the city. Transport costs are minimal, especially with no parking costs and driving ten year old cars. Entertainment for us is a DVD or a visit to the movies on cheap Tuesday. Walks in the park are free, so are visits to the beaches. The free pool at Redcliffe is to die for if you dont think about who else goes there, and we get cheaper 'locals' entry into Dreamworld and the other Gold Coast theme parks whenever there is an excuse for a really big day out.
Hubby and I sink nearly $20K a year into the mortgages from our combined incomes in our day jobs (before neg gearing), which is much lower than $100K pa in the examples above.
They don't have to take the whole loan period to pay it of though.
But of course; that's not what people do; you've gotta borrow as much as you physically can, pay the minimum repayment (because you're at your borrowing limit) and hope like hell the interest rates don't go up.
This would explain why a .25% change, or a jump in the price of petrol each week, sends so many screaming into the streets with shouts of.... "OMG!...how will I afford the groceries now?"
Requoted for truthiness
Just adding my 2c
Will turn 30 at the end of this year, bought a PPOR 2.5ish years ago for $340k, was earning about $28k from day job and $13k from night job at the time,
We used my wife's income of about $45k on the loan application and hoped that no one noticed she was pregnant as hell. She stopped working 2 weeks after we moved in.
Very do-able.
(I did this all with the confidence that my pay would rise as I gained more experience in my new job - it did, now on almost 4x as much.)
Will turn 30 at the end of this year, bought a PPOR 2.5ish years ago for $340k, was earning about $28k from day job and $13k from night job at the time,
We used my wife's income of about $45k on the loan application and hoped that no one noticed she was pregnant as hell. She stopped working 2 weeks after we moved in.
Very do-able.
(I did this all with the confidence that my pay would rise as I gained more experience in my new job - it did, now on almost 4x as much.)
And how much pain will your mortgage actually inflict in the future when you are paying $3 a litre for fuel.$10 for a can of coke. $800 per week for your average rent etc etc.
And most importantly average wages have adjusted up to allow for this new cost of living.
things look bad today( and for many they are) but things change . Ask your parents,grandparents. They will keep you entertained for hours about what things use to cost and what they use to get paid.
And most importantly average wages have adjusted up to allow for this new cost of living.
things look bad today( and for many they are) but things change . Ask your parents,grandparents. They will keep you entertained for hours about what things use to cost and what they use to get paid.
And how much pain will your mortgage actually inflict in the future when you are paying $3 a litre for fuel.$10 for a can of coke. $800 per week for your average rent etc etc.
And most importantly average wages have adjusted up to allow for this new cost of living.
things look bad today( and for many they are) but things change . Ask your parents,grandparents. They will keep you entertained for hours about what things use to cost and what they use to get paid.
Probably not much pain at all as wages would have gone up a fair bit as well
My point exactly.
I'm not going to argue the fact that it's a hard time to buy for some or the fact that better investment returns may be found elsewhere.
But I think you can safely say that with time it will get easier.
Yes agreed. I may be way off the mark here, but I can see a whole heap of inflation coming our way with the likes of the carbon tax and all of these higher utilities we are seeing. Perhaps this will devalue our dollar and pay rises will be in order shortly after.
Similar threads
