JockinTas Posted August 14, 2015 Share Posted August 14, 2015 It's crazy. People say wow our house has gone up so much, it's wonderful but they have to buy another that has also gone up the same. The only way to 'profit' from it is to sell and move to the UK when the exchange rate is around $1.40 to the pound We sold in Sydney and moved to Tasmania. Bought a house just as nice if not nicer than the one in Sydney and paid a third what we sold the Sydney house for. Quote Link to comment Share on other sites More sharing options...
Parley Posted August 14, 2015 Share Posted August 14, 2015 We sold in Sydney and moved to Tasmania. Bought a house just as nice if not nicer than the one in Sydney and paid a third what we sold the Sydney house for. You can do that and well done. Or you can move to the country/ rural area in your state. It is hard to uproot and leave all your friends and community behind though. Quote Link to comment Share on other sites More sharing options...
JockinTas Posted August 14, 2015 Share Posted August 14, 2015 You can do that and well done.Or you can move to the country/ rural area in your state. It is hard to uproot and leave all your friends and community behind though. I've always loved Tasmania so was very happy to move here Parley. We have a good social life and have met lovely people also a couple of my close friends from Sydney have moved to the north coast of Tassie and another one is moving when she retires. Quote Link to comment Share on other sites More sharing options...
milliem Posted August 15, 2015 Share Posted August 15, 2015 (edited) Bought recently having rented in UK and Oz for a long time. Very happy to be in our own place even though it means travel to work and I owe a lot of money in mortgage. It was great to get the first home buyers grant and the stamp duty concession. This made a huge difference to the deposit. I researched the rental prospects before buying as I wanted to see how the commute went to keep my options open. That way after a year or so I could move back to the city. Decided to travel to Brisbane by train; I have found this much less stressful than sitting in traffic and I get some work done on the way. It has only been two months but so far so good. previously I was driving to work at 6am so as to nab the free parking at South bank. Now I get up at 6 and leave home at 0715. Even on the days when I work very late it is still great to get back to a lovely home. Did it make financial sense. I hope so. I am also one who lost money with my first house in the London market in the early 90s so I guess I will always be sceptical about how things can turn out. Right now all is good. Millie Edited August 15, 2015 by milliem Quote Link to comment Share on other sites More sharing options...
starlight7 Posted August 15, 2015 Share Posted August 15, 2015 Another thing with buying is you can put as many pictures as you like on the walls! Our house resembles an art gallery. Quote Link to comment Share on other sites More sharing options...
Clankaroo Posted August 15, 2015 Share Posted August 15, 2015 I've been recently reading the book "Australia boom to bust" and it's clear to me now that the property market is heading to a disaster. This will have a huge impact on the economy and the banks. And the sooner it happens, the better as the country can go back to normal and make a better and more productive use of the available money and debt. As far as I am concerned, I am not immigrating. Australia and particularly Sydney is a ticking bomb. I still have 1.5 years left on my visa, so never say never, but unless things change dramatically in the short term I'll stay put. Quote Link to comment Share on other sites More sharing options...
JockinTas Posted August 15, 2015 Share Posted August 15, 2015 I've been recently reading the book "Australia boom to bust" and it's clear to me now that the property market is heading to a disaster. This will have a huge impact on the economy and the banks. And the sooner it happens, the better as the country can go back to normal and make a better and more productive use of the available money and debt. As far as I am concerned, I am not immigrating. Australia and particularly Sydney is a ticking bomb. I still have 1.5 years left on my visa, so never say never, but unless things change dramatically in the short term I'll stay put. Quite right :smile: Quote Link to comment Share on other sites More sharing options...
starlight7 Posted August 16, 2015 Share Posted August 16, 2015 Yup- wouldn't fit in at all.... Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted August 17, 2015 Share Posted August 17, 2015 Well good for you. But could you afford to buy your own house now if you were starting out? To buy a $1m house you need a 6 figure deposit and at least $250,000 household income. Not possible for the vast majority of Australians. You're right and there aren't many people around with the kind of income that would make buying $1m house possible. However Parley doesn't say how much he paid for it, might have been a couple of hundred thousand and if that's the case he's done well, like a lot of people, including us. A lot of people coming from the UK will have sold a property there and have money to put down. If you have close to $1mill, or can get a mortgage for that much, there are some absolutely stunning places around. We had some friends move into our suburb last week and we bought them a bottle of champagne and walked down to see the house on Saturday. The husband is a fly in fly out train driver and the wife a secretary at the hospital. They have a couple of kids and a dog and wouldn't be on $250,000 annual income or even close to it. I know they maxed themselves out as there was another house they were looking at that was just over $1m and they said it was out of their price range. I think this one was just less than $1m. The place was stunning though. 3 storeys with a double garage underneath, 180 degree ocean views from the kitchen on the first floor and even better ones from the bedroom. Choice of 4 balconies that catch the sun at different times of the day. Garden and pool out the back. Far enough from the beach to not get the massive sea breezes but high enough up to get the views. Quiet road, no through traffic. Stunning place. There's a lot more to making the decision about renting or buying than if you are going to make money. Me and the wife have never considered if or how much we would make, just whether we liked the house and the suburb we were going to live. Once you're in it it's yours, even if you still have 25 years of a mortgage to pay. Somehow we all struggle through and when we bought ours we were worried about the mortgage and it was miniscule compared to what our friends have just taken on. The excitement and joy though of owning the place you wanted is indescribable. Quote Link to comment Share on other sites More sharing options...
akiralx Posted August 17, 2015 Share Posted August 17, 2015 The husband is a fly in fly out train driver and the wife a secretary at the hospital. They have a couple of kids and a dog and wouldn't be on $250,000 annual income or even close to it. I know they maxed themselves out as there was another house they were looking at that was just over $1m and they said it was out of their price range. I think this one was just less than $1m. The place was stunning though. 3 storeys with a double garage underneath, 180 degree ocean views from the kitchen on the first floor and even better ones from the bedroom. Choice of 4 balconies that catch the sun at different times of the day. Garden and pool out the back. Far enough from the beach to not get the massive sea breezes but high enough up to get the views. Quiet road, no through traffic. Stunning place. Good luck to them - but if interest rates climb or rising unemployment causes either to lose their job I would worry how they will service that large loan... Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted August 17, 2015 Share Posted August 17, 2015 We sold in Sydney and moved to Tasmania. Bought a house just as nice if not nicer than the one in Sydney and paid a third what we sold the Sydney house for. But you live in Tasmania Jock.:wink: Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted August 17, 2015 Share Posted August 17, 2015 Good luck to them - but if interest rates climb or rising unemployment causes either to lose their job I would worry how they will service that large loan... They probably worry about that too. You could get run over tomorrow, lose your job, get cancer. Any one of a number of things but that's life. In the mean time they have a stunning house and will be walking around with a smile on their face every time they walk into it. Her comment was she had to pinch herself about every hour. We replied we are still pinching ourselves and we've been in the suburb 23 years. When we are down the beach, like Saturday when the first glimpse of summer is here, everyone turns out, beach busy, park busy, pub and restaurant busy, fantastic sunset sat in the restaurant at the front, having a couple of beers. Living the dream.:yes: Quote Link to comment Share on other sites More sharing options...
JockinTas Posted August 17, 2015 Share Posted August 17, 2015 But you live in Tasmania Jock.:wink: Yes I do - get your monies worth here when buying a house. I've wanted to live in Tasmania for years and years. I prefer 4 seasons and the colder weather here doesn't bother me. We even had a flurry of snow last week. You wouldn't like it Paul :tongue: Quote Link to comment Share on other sites More sharing options...
starlight7 Posted August 17, 2015 Share Posted August 17, 2015 I love Tassie and could cope with the weather- but would suffer from retail therapy withdrawal I'm afraid. Though i seem to remember there are a few great op shops up in the North West where we used to live! Quote Link to comment Share on other sites More sharing options...
movingback Posted August 17, 2015 Share Posted August 17, 2015 You're right and there aren't many people around with the kind of income that would make buying $1m house possible. However Parley doesn't say how much he paid for it, might have been a couple of hundred thousand and if that's the case he's done well, like a lot of people, including us. A lot of people coming from the UK will have sold a property there and have money to put down. If you have close to $1mill, or can get a mortgage for that much, there are some absolutely stunning places around. We had some friends move into our suburb last week and we bought them a bottle of champagne and walked down to see the house on Saturday. The husband is a fly in fly out train driver and the wife a secretary at the hospital. They have a couple of kids and a dog and wouldn't be on $250,000 annual income or even close to it. I know they maxed themselves out as there was another house they were looking at that was just over $1m and they said it was out of their price range. I think this one was just less than $1m. The place was stunning though. 3 storeys with a double garage underneath, 180 degree ocean views from the kitchen on the first floor and even better ones from the bedroom. Choice of 4 balconies that catch the sun at different times of the day. Garden and pool out the back. Far enough from the beach to not get the massive sea breezes but high enough up to get the views. Quiet road, no through traffic. Stunning place. There's a lot more to making the decision about renting or buying than if you are going to make money. Me and the wife have never considered if or how much we would make, just whether we liked the house and the suburb we were going to live. Once you're in it it's yours, even if you still have 25 years of a mortgage to pay. Somehow we all struggle through and when we bought ours we were worried about the mortgage and it was miniscule compared to what our friends have just taken on. The excitement and joy though of owning the place you wanted is indescribable. I'm getting deja vu reading this. I was in California for a few months in 2005. The exact same scenario above was played out thousands of times. The place I was working at had a cleaner. Her husband was a taxi driver. I got chatting to her one night. They had just taken out a $650,000 mortgage. I often wonder what happened to them over the ensuing couple of years. No doubt one of the many foreclosure statistics... Quote Link to comment Share on other sites More sharing options...
Clankaroo Posted August 17, 2015 Share Posted August 17, 2015 Absolutely. What matters is numbers and not impressions and feelings. It's clear when you buy a house you always feel like you're paying too much. What matters is the ratio average house price / average salary. In Sydney this is now over 10, which is insane. I have zero empathy for the so called 'investors' that are riding this wave and make a lot of money (in theory as they keep their profits in real estate) without effort. They will get burned very badly when this party will come to an end. I feel bad however for those that acted reasonably by buying their own housing and secure their future by putting a roof over their heads, they will get burned too when their mortgage will go underwater. To add insult to injury, their tax-payers money will be used to bail out banks in the range of hundreds of billions of AUD, the same banks that benefited immensely by this bubble, with the complicity of the state, too happy to cash in stamp duty. Quote Link to comment Share on other sites More sharing options...
Parley Posted August 17, 2015 Share Posted August 17, 2015 You're so sure there will be a crash but I wouldn't bank on it if I were you. Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted August 17, 2015 Share Posted August 17, 2015 What goes up can come down. That applies to land, housing, commodities, equities, even some government bonds. There is no such thing as risk-free profit on any investment. Quote Link to comment Share on other sites More sharing options...
Skani Posted August 18, 2015 Share Posted August 18, 2015 I love Tassie and could cope with the weather- but would suffer from retail therapy withdrawal I'm afraid. The standard treatment for sufferers of this condition - of which I'm not one, thankfully - seems to be a few days in Melbourne for a super binge bender. :laugh: Quote Link to comment Share on other sites More sharing options...
akiralx Posted August 18, 2015 Share Posted August 18, 2015 I love Tassie and could cope with the weather- but would suffer from retail therapy withdrawal I'm afraid. Not me - do all my shopping online.... I could happily retire to Tasmania. Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted August 18, 2015 Share Posted August 18, 2015 Yes I do - get your monies worth here when buying a house. I've wanted to live in Tasmania for years and years. I prefer 4 seasons and the colder weather here doesn't bother me. We even had a flurry of snow last week. You wouldn't like it Paul :tongue: I know I wouldn't like it Jock. Every time I see the weather forecast for Tassie I think it's about as bad as living near the Peak District in the UK.:eek: I know some people like it and I'm glad you do. It's not for me and the missus though, we are more than happy here. In fact my wife was remarking that she was ready for some nice weather on Saturday when it got to 26 degrees.:cool: Role on summer. Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted August 18, 2015 Share Posted August 18, 2015 I'm getting deja vu reading this. I was in California for a few months in 2005. The exact same scenario above was played out thousands of times. The place I was working at had a cleaner. Her husband was a taxi driver. I got chatting to her one night. They had just taken out a $650,000 mortgage. I often wonder what happened to them over the ensuing couple of years. No doubt one of the many foreclosure statistics... I think her hubby is on a bit more than a taxi driver and she's not a cleaner. They have a couple of investment properties so they are doing a bit better than the American couple. America also got a caning from the GFC and it was mostly the American banks, Fannie May and Freddie Mac loan companies that caused it. Quote Link to comment Share on other sites More sharing options...
starlight7 Posted August 18, 2015 Share Posted August 18, 2015 This is something that I've been thinking about for when I come back to the UK and "grow up". I don't particularly want to rent forever but it would be hard for me to buy something plus there's all the other costs that go with it. So I'll probably just rent till I find someone and then hopefully buy somewhere together Darling don't ever 'grow up' - keep young. It is boring to 'grow up". Quote Link to comment Share on other sites More sharing options...
pamhenery Posted August 20, 2015 Share Posted August 20, 2015 We can not say the right things on this topic. Renting and buying is totally different and has many things on this. Profit and loss is the other way. Actually, last week, I bought a house $1m. I am happy that i have my own house. No problem of maintenance and all problems which is happening when I take it on rent. Quote Link to comment Share on other sites More sharing options...
Guest Anya Posted August 22, 2015 Share Posted August 22, 2015 Actually, last week, I bought a house $1m. I am happy that i have my own house. No problem of maintenance and all problems which is happening when I take it on rent. I think you got it wrong there. Unlike a homeowner, as a renter you don't have to spend any money on home maintenance, repairs (try calling a plumber/electrician and see how fast your pockets get emptied!), council rates, water rates, fire levies, home insurance etc etc. I would strongly advise people against falling for the usual pressure tactics employed to make them panic and rush into buying a property, as if it is a now or never situation. One of the most ridiculous reasons that people say they're happy they bought is the fact that they can drive nails into walls and hang pictures at whim. I can almost picture them rushing with a hammer and box of nails, the minute they get possession...lol. Unless you can afford to take on very little or at least a very manageable amount of debt to buy property in a place where you see yourself living for at least 10+ years (it is very expensive to buy and sell property and you don't have the same freedom as a renter), I'd say you're better of renting in very desirable suburbs without the stress of a huge mortgage hanging like a sword over your head. There is absolutely nothing wrong with renting and in fact renting has several advantages over buying in this overheated market. Meanwhile continue to save money - if at all you do wish to buy, you can always choose to buy when you're really ready and not because someone else tells you it is a good idea. Another good thing in favour of renters now is that the rental market is cooling (especially high end properties) at least in Melbourne. Although it is just my experience over the last 2 weeks, I can feel a perceptible change in buyer attitudes - barring a few properties which saw ridiculously high prices being paid (I'd call them outliers), the high levels of stupidity and eagerness to shell out millions for what was being sold much lower only a few years ago appear to be waning. The next few weeks will tell us whether markets are cooling. Quote Link to comment Share on other sites More sharing options...
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