Guest Abi&Dan Posted December 6, 2007 Posted December 6, 2007 Hi guys To anyone in Oz (preferably Melbourne) - we're wondering whether to bother buying when we get there. We've done some research on costs and they seem very eager to throw loads of money at you for a mortgage and then take upwards of 55% of your net income back off you in repayments!! Dan will be at college full time and therefore not earning for the first couple of years so having done some very rough estimations on net income (still being very hazy about the tax system) and hopefully hugely underestimating income!! - we've had a look at what we can get and the cost of repayments....so 1. Can a couple (no children) live on $2k per month net after mortgage. I'm thinking utilities, petrol, travel costs, food, a small amount of 'life'. Our UK costs for these things amount to around £1250 pm but hopefully food and petrol are still slightly less in Oz than the national debt. It's really not knowing the monthly costs of utilities, broadband, train tickets etc that make it hard to see if it's possible - we can always just stop eating!!; and 2. Is it worth buying at all? It's expensive. Obviously one day when we have a family we will want our own place but has anyone long term rented and found it really worked for them? Rental does seem to be a lot cheaper than mortgage but we had hoped to keep our first place as a retirement investment. Anyone have any thoughts on the financial aspect of buying vs renting?? Ta very much :wubclub:
calNgary Posted December 6, 2007 Posted December 6, 2007 Hiya i cant help from a melbourne or financial point of view ,,but loads of aussies rent ,i was very surprised how few actually own the house they live in ,,apparantly many stryggle to raise the depsoit required,if you can afford it id get on the ladder now as prices will only continue to rise ,,good luck Cal x
Guest EM&M Posted December 6, 2007 Posted December 6, 2007 We as a family of 4 (2 children under 4) have been living on $2400 net a month excluding rent ($350). Is a real struggle but we have no social life with 2 kids lol Em x
Life on easy street Posted December 6, 2007 Posted December 6, 2007 Train tram tickets are cheap compared to the south of England In Central Melbourne you are never more than a block away from a tram line They work on Metcard system Similar to the London Travel card Can use it on trams or trains. There are only two zones. A Single zone cost all day costs $6:30 A Two zone’s all day costs $9.70 A two-hour valid in zone one costs $3:30 if you validate it after 6:0pm Valid until the last train of the day. There are monthly and yearly tickets do not recall the price of those. Parking in central melbourne is now getting expensive $30 to $40 a day Plus GST. There are cheaper places but you have to look around. you even have to pay to park if you go to the beach !!:sad:
Guest Abi&Dan Posted December 6, 2007 Posted December 6, 2007 Thanks guys Em - it's great to know it can be done, even if you have to go without a lot - but then nothing really good comes easy at first!! And the tram costs sound ok too - specially as they're sure to be cheaper on season tickets.
Guest dwaldron Posted December 6, 2007 Posted December 6, 2007 Levels of home ownership here are pretty much the same as the UK - 70%. On $2,000 a month I would seriously consider renting if I were you, it's much cheaper and frankly for the first two years of being here do you want to struggle? You can get 7.25-7.5% in a savings account these days so I would stick your money in there for now and worry about buying once you are both working.
Guest Liam Posted December 6, 2007 Posted December 6, 2007 We rented for the first 3 years when we moved over here. Thank god we did as we moved 2 times and I know the cost of stamp duty on buying properties and real estate fees on selling them would have sunk us! I recommend you rent for at least the first year or 2 and get to know the city/town you are living in before you commit to buying. 2 kilometres can mean a totally different type of neighbourhood over here so take your time and find out about services, schools, social life etc in the area before you buy. financially you are slightly better off in the short term renting but long term you are probably best to buy. Why not put the difference between a mortgage payment and your rent into a high interest savings account and save for a bigger deposit. that way you are getting used to what a mortgage payment would be like ...without the real pain as you can access the cash if desperate! Bankwest are offering 7.2%, ING 7% and Rabobank 7.25% at the moment. regards Liam
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