buckbuchanan Posted July 30, 2008 Share Posted July 30, 2008 Thought this might be interesting for people wondering if they can afford to live here... I have recently contributed to a thread saying that the cost of living in Melbourne was pretty much on par with the UK, and in some cases more expensive. Now, on the whole I still stick to that, however a recent string of events has forced our hand to move and I think it will work out for the best.... We currently live in Bayside. Here you can't buy a house for much less that $400k (i'm talking a family house). In our suburb a small plot of land with a house that needs knocking down will cost you at least $1m (£500k). You then have to build a house on top of that. Anyway, our landlord came and told us that when our lease is due, our rent will be going up (because of the current demand) - we are already paying $2350 a month. So we decided that we need to buy or build a house rather than be held to ransom. We want a new house so decided to see if we could afford to build our own. It works differently over here... in the UK generally the house builder will have all the houses planned and all you need to do is turn up and choose which one you want. They are also a fixed price, so you know what you are paying. Over here though, you need to buy the house and land separately (the builders will help you with the land or you can do it yourself). Well, to our surprise we discovered that the starting price for a decent 4 bedroom house is around the $150k (£75k) mark!! You can then buy land in most suburbs for around the $180-200k mark (£90-100k) - for a 650m2 plot (an ok size but you won't have much of a garden - remember houses are bigger here so take up much of the plot). While we were in one of the builders display homes the woman told us to go to their display centre in Melton, which is a small town NE of Melbourne. She lives there and loves it. It is 40 minutes on the train to the CBD and is still in zone 1 for the metro trains. So we took a spin out there and loved it as well. Melton is out in the country but has all the shops, parks, swimming pool, etc that you would expect. It is known as a "working class" area but it is one of the few places which doesn't have grafitti everywhere and looks clean, well kept, and everything is fairly new. The town is undergoing a huge expansion with lots of new land being released for housing. But it gets better.... we then found a plot of land measuring 850m2, for $98k (£49k). So, the total cost of the house and the land is $250k (£125k). Now, this might not seem too amazing for people living in some of the more remote parts of the UK, but i'm sure that the folks from the South are gasping at this news. Before I get a string of "I told you so's"... there are a couple of caveats to this great news: 1. There are additional costs while building a house over here. You need to pay for site costs, driveways, fencing above the cost of the house. These figures vary but could be up to $20k (£10k). 2. Since you buy the land separately you need to pay for it before building begins. This means that you start paying part of your mortgage from that day. The builder then asks the bank for money at different stages to pay for the building so each month the build goes on your mortgage payments increase. This could cause problems if you are renting because you will pay rent and a mortgage at the same time probably for 6 months. 3. Last but by no means least, the interest rates are up at 9.7. This has a huge impact on the monthly payments. We are going to have a mortgage for half the amount that we had in the UK, but the monthly payments will be around the same. However, we are gambling on the interest rates going down. Anyway, I thought some folks out there would be thinking of building a house, so might find this information useful. Link to comment Share on other sites More sharing options...
Mongrel Posted July 30, 2008 Share Posted July 30, 2008 Thought this might be interesting for people wondering if they can afford to live here... I have recently contributed to a thread saying that the cost of living in Melbourne was pretty much on par with the UK, and in some cases more expensive. Now, on the whole I still stick to that, however a recent string of events has forced our hand to move and I think it will work out for the best.... We currently live in Bayside. Here you can't buy a house for much less that $400k (i'm talking a family house). In our suburb a small plot of land with a house that needs knocking down will cost you at least $1m (£500k). You then have to build a house on top of that. Anyway, our landlord came and told us that when our lease is due, our rent will be going up (because of the current demand) - we are already paying $2350 a month. So we decided that we need to buy or build a house rather than be held to ransom. We want a new house so decided to see if we could afford to build our own. It works differently over here... in the UK generally the house builder will have all the houses planned and all you need to do is turn up and choose which one you want. They are also a fixed price, so you know what you are paying. Over here though, you need to buy the house and land separately (the builders will help you with the land or you can do it yourself). Well, to our surprise we discovered that the starting price for a decent 4 bedroom house is around the $150k (£75k) mark!! You can then buy land in most suburbs for around the $180-200k mark (£90-100k) - for a 650m2 plot (an ok size but you won't have much of a garden - remember houses are bigger here so take up much of the plot). While we were in one of the builders display homes the woman told us to go to their display centre in Melton, which is a small town NE of Melbourne. She lives there and loves it. It is 40 minutes on the train to the CBD and is still in zone 1 for the metro trains. So we took a spin out there and loved it as well. Melton is out in the country but has all the shops, parks, swimming pool, etc that you would expect. It is known as a "working class" area but it is one of the few places which doesn't have grafitti everywhere and looks clean, well kept, and everything is fairly new. The town is undergoing a huge expansion with lots of new land being released for housing. But it gets better.... we then found a plot of land measuring 850m2, for $98k (£49k). So, the total cost of the house and the land is $250k (£125k). Now, this might not seem too amazing for people living in some of the more remote parts of the UK, but i'm sure that the folks from the South are gasping at this news. Before I get a string of "I told you so's"... there are a couple of caveats to this great news: 1. There are additional costs while building a house over here. You need to pay for site costs, driveways, fencing above the cost of the house. These figures vary but could be up to $20k (£10k). 2. Since you buy the land separately you need to pay for it before building begins. This means that you start paying part of your mortgage from that day. The builder then asks the bank for money at different stages to pay for the building so each month the build goes on your mortgage payments increase. This could cause problems if you are renting because you will pay rent and a mortgage at the same time probably for 6 months. 3. Last but by no means least, the interest rates are up at 9.7. This has a huge impact on the monthly payments. We are going to have a mortgage for half the amount that we had in the UK, but the monthly payments will be around the same. However, we are gambling on the interest rates going down. Anyway, I thought some folks out there would be thinking of building a house, so might find this information useful. HI The land is a steal at that price cheapest seen in Perth nor 230k for a 650sqm block oh seen a house design she likes at a display village 175k 4 x2 theres only me her and the bloody dog. That includes fencing drive etc, only need a 496 m block Malx aka Billy 1/2 doz m Link to comment Share on other sites More sharing options...
Guest Pinhead Posted July 30, 2008 Share Posted July 30, 2008 Buck I think you've finally moved into the light!:notworthy: Don't be tempted back to the dark side! Link to comment Share on other sites More sharing options...
jenki Posted July 30, 2008 Share Posted July 30, 2008 So Buck, if you're building a house here, does that mean that you like it here and are planning to stay? Link to comment Share on other sites More sharing options...
buckbuchanan Posted July 30, 2008 Author Share Posted July 30, 2008 No.... it just means I don't want to pay rent for the whole time out here!! But you never know what will happen..... Link to comment Share on other sites More sharing options...
AnxiousMum Posted July 30, 2008 Share Posted July 30, 2008 Hi Buck, Thanks for the info, i've clicked your chicken for that one. Do you know if you are allowed to do this kind of thing on a sponsored visa 457 at all? We are definatley interested in this. Link to comment Share on other sites More sharing options...
Mongrel Posted July 30, 2008 Share Posted July 30, 2008 Hi Buck, Thanks for the info, i've clicked your chicken for that one. Do you know if you are allowed to do this kind of thing on a sponsored visa 457 at all? We are definatley interested in this. hi were on a 457 you have to apply to the foreign investments r board for permission and rates are higher and you will need a 30 per cent deposit malx aka Billy 6m Link to comment Share on other sites More sharing options...
AnxiousMum Posted July 30, 2008 Share Posted July 30, 2008 Thanks for info Link to comment Share on other sites More sharing options...
buckbuchanan Posted July 30, 2008 Author Share Posted July 30, 2008 Well... I don't know the in's and out's of how your visa restricts you, but when I payed my deposit for the land, the land agent asked if I had a PR visa. He told me that if I wasn't on a PR visa that I wouldn't be able to buy an old house but I could build a new one (which seems strange to me). He also said that if I wasn't on a PR visa there would be a clause in the contract forcing me to build on it within a few months (i.e. you can't buy land and just leave it sitting there empty). I'm not sure what classes of visa are affected by this but it's something to look into. Link to comment Share on other sites More sharing options...
Mongrel Posted July 30, 2008 Share Posted July 30, 2008 Well... I don't know the in's and out's of how your visa restricts you, but when I payed my deposit for the land, the land agent asked if I had a PR visa. He told me that if I wasn't on a PR visa that I wouldn't be able to buy an old house but I could build a new one (which seems strange to me). He also said that if I wasn't on a PR visa there would be a clause in the contract forcing me to build on it within a few months (i.e. you can't buy land and just leave it sitting there empty). I'm not sure what classes of visa are affected by this but it's something to look into. Defo think thts true about the land Malx Link to comment Share on other sites More sharing options...
AnxiousMum Posted July 30, 2008 Share Posted July 30, 2008 Yeah, I have just checked the FIRB and we do have to build on it pretty quick. Are the Ozzies quick on the mark or are they like in Spain where they will get the work done when its done kind of thing? Link to comment Share on other sites More sharing options...
AnxiousMum Posted July 30, 2008 Share Posted July 30, 2008 Anyway Buck, how are you and the family finding Melbourne now you have been there a while. Do you feel any better towards the move you made? Link to comment Share on other sites More sharing options...
Mongrel Posted July 30, 2008 Share Posted July 30, 2008 Yeah, I have just checked the FIRB and we do have to build on it pretty quick. Are the Ozzies quick on the mark or are they like in Spain where they will get the work done when its done kind of thing? What I`ve seen they are quik but you see horror storys on tv but be r8 . We are waitin while we get pr and going for the govt share ownership option we have been told we qualify and no wedge we will have to give it a whirl at our age no option Malx aka Billy 6M Link to comment Share on other sites More sharing options...
AnxiousMum Posted July 30, 2008 Share Posted July 30, 2008 What I`ve seen they are quik but you see horror storys on tv but be r8 . We are waitin while we get pr and going for the govt share ownership option we have been told we qualify and no wedge we will have to give it a whirl at our age no option Malx aka Billy 6M Hi, If you dont mind me asking what is the Govt Share Ownership Option? I havent heard of this and as we are in the same boat as you (have to go down the sponsored visa route) would like any tips and help you can give.:cute: Link to comment Share on other sites More sharing options...
Mongrel Posted July 30, 2008 Share Posted July 30, 2008 Hi, If you dont mind me asking what is the Govt Share Ownership Option? I havent heard of this and as we are in the same boat as you (have to go down the sponsored visa route) would like any tips and help you can give.:cute: Its a sharec ownership scheme wa govt pay so much but you have to have pr and you get first time buyers discounts when you have pr and you will need 6 months salary slips aussie ones so we are rentin while we get the nod Malx Link to comment Share on other sites More sharing options...
AnxiousMum Posted July 30, 2008 Share Posted July 30, 2008 Oh ok thanks for that Link to comment Share on other sites More sharing options...
Guest melissa Posted July 30, 2008 Share Posted July 30, 2008 Yeah, I have just checked the FIRB and we do have to build on it pretty quick. Are the Ozzies quick on the mark or are they like in Spain where they will get the work done when its done kind of thing? You're supposed to build on the land within a year. It can take 6 months to get council planning permission. If you employ a builder within the year and show the FIRB the contract to prove it then you'll be okay. I think they class this as starting the build. Darren. Link to comment Share on other sites More sharing options...
buckbuchanan Posted July 30, 2008 Author Share Posted July 30, 2008 Pinhead: I'm able to live on the divide between light and dark. I spread the joy and the darkness! AnxiousMum: We're still not sure about this place, but we are going to stay for at least 2 years. Hopefully once we have our own house (and hopefully a pool) it will be more like the "aussie dream"! I'm sure I come accross as negative most of the time - it's not that I am desparate to go home, it's just that i'm not sure it's worth being half way around the world. Something else I forgot to mention is that if you are building a house you only pay $2000 (£1000) stamp duty (you only pay stamp on the empty land), rather than the $12-20,000 you would normally pay. Also, the government give you a first time home buyer grant of $12000 (£6000) - this pretty much covers all the fees. Not sure how your visa affects this though. Link to comment Share on other sites More sharing options...
Guest taffy 62 Posted July 30, 2008 Share Posted July 30, 2008 Hi buck I have built 3 houses in victoria and love doing it, its second nature to me now and would love to build another when we move back to wodonga. We most prob will cause as you said you only pay stamp duty on the land so you save around $10,000 compared to buying an established house, which you can use to do your landscaping etc, plus if you buy established you will also want to change certain things which will cost more money. Another thing I have found is that I am so fussy and know what I want its easier and cheaper for me to design the house and take my own plans to the builder and ask him to quote a price. You usually have to go to the smaller builders for this as the big ones only have their own plans and charge you the earth if you want to make changes, as most of the frames and timber work has already been cut and is sitting in a warehouse somewhere, they order hundereds the same so get good prices, this enables them to offer cheaper prices on their houses, this works out well if you can find a plan your competely happy with. I have got to the stage where I know exactly what size rooms need to be for certain things and have even measured furniture and scaled it down to make sure everything fits!! scary but true lol I told you I was fussy:biglaugh: The builders know me now lol and think oh here she comes again lol. It works out well as hubby cant picture in his head the house from the plans at all, he has to see the walls up first, so he trusts me now lol and knows everything will work out ok!!!! So good luck in your housing venture, you never know you may get the building bug too:smile: Link to comment Share on other sites More sharing options...
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