I bought my first property at 18, first year of uni.
Mr responsible over here
Well done though - that's very impressive. Hate to think of where my cash went during the first year of Uni.
Cheers
Jamie
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I bought my first property at 18, first year of uni.
When you say;"I could only get 80% LVR"....and "good rental yield to make it work"....Im a full time uni student and bought my first IP last year.
I could only get 80% LVR and needed good rental yield to make it work.
Im a full time uni student and bought my first IP last year.
I could only get 80% LVR and needed good rental yield to make it work.
To be fair though, it's a *lot* more difficult to save for a deposit and service a loan for a FHBer in the eastern States with the large median variance compared to SA
Really not that much to it to be honest. I started saving for my first house when I was 16, worked nights while at uni. Paid deposit, acquired house.
To be fair though, it's a *lot* more difficult to save for a deposit and service a loan for a FHBer in the eastern States with the large median variance compared to SA - but there's nothing stopping your friend for purchasing regional/interstate.
The flipside is that the properties he would qualify for would most likely be neutral to slightly positively geared, minimising the impact on his low income.
Correct me if I am wrong. If they buy this as an investment, they are still able to have their grant when they want to buy their PPOR (if it still exists at the time).
My understanding is: correct.
Wish I'd bought something like that in Frankston! Good find.
Why were you at uni as a 16 yr old?
How much was the first buy?
Funny that everyone states..save more..spend less...buy cheaper (read a dump)..set your sights lower..I could do it 10, 20 or 30 years ago so why can't the younger set now do it...
Statistically first home buyers are at record lows. Something has changed in the last decade or so...so just telling young people to work harder, longer, get three jobs, move out to the boondocks, live at home till your 30, don't have kids till your 40, make sure your partner is capable of working and never stop just doesn't cut it. Sure if you adopt these measures you can break into the market. I mean lets face it...who wouldn't LOVE to live with their parents into their 30's, travel 2-3 hours each way to get to work daily, get married and defer having children only to never see your grand children grow up, work 60 to 80 hours a week for the next decade all the while squirreling every spare cent away. I can see why the younger set are lining up as first home buyers....NOT
The question is why should young people HAVE to undertake these measures when the boomer generation before them did NOT. It's TOO HARD!!! Look at the rates of first home buyers and tell me its not.
I think most people would love to be in a position to be paying off their own home, practically it is becoming impossible for the young masses to make this transition due to the reasons above. If you have done it , congratulations. In an earlier time you did it, the world has changed. The rules have changed, what worked for you 10, 20 or 30 years ago does not work now. The FHB's know this even if you don't.
Get a grip! This sounds like the rant of a GenY who wants the world, but isn't prepared to do what it takes to get it.
It has ALWAYS been hard to get the first home. Yes, the world HAS changed, but it's not made home ownership any harder. For instance:
Then:
Must have genuine savings of 20%. Max LVR 80%
Nearly impossible for a single woman to purchase
Consumer goods a lot more expensive
17.5% Interest rates
Now:
Don't need savings, 95% loans commonplace.
No discrimination
Consumer goods cheap as chips in comparison to wages
Sub 5% Interest rates
Of course, there's more, but there's a start.
Many of the older crowd (including me) bought dumps, in lousy places, just to get a foothold. What makes you so special that you need a nice place. We bought secondhand furniture too, because we couldn't afford to buy nice new stuff.
The difference is that many of the young people I meet are so consumer driven that they don't know how to save. They spend more than they earn, and then cry poor.
The baby boomers, on the otherhand, learnt to live within their means and save for what they wanted. We often did without because we didn't have the money to buy something. We learnt what is a need, and what is a want.
Here you are, crying that it's near impossible for the young masses to buy something, when right in front of you, you have examples of plenty of young people that have not only bought one property, but multiples, (CJay, nhg, rohan22no, MattADL). If they can do it, others can too.
Oh, & judging from the responses of these youngsters, they weren't on high incomes at the time either.
Yep, I've got a lot of respect for those that just get in there & DO it.What these guys have in common is they work smarter, brilliant.
CJay, nhg, rohan22no, MattADL - lower median and good cashflow
A side issue - at the time had you ever considered asking your parents to help you with deposits (a short term loan) if they were in a position to do this????
Cheers
MTR
Because the goal posts have shifted.Funny that everyone states..save more..spend less...buy cheaper (read a dump)..set your sights lower..I could do it 10, 20 or 30 years ago so why can't the younger set now do it...