hi guys
need your suggestions. i am looking to buy a house in the next 1-1.5 years, valued around 400k. but it just seems impossible to get close to save for the initial deposit (20%). both of us are working with average salaries, but its just impossible to save.
could you guys plz suggest ways how we should save/other ways to buy property?
Thanks
"If you have parents, you can always swallow your pride and move back in with them"
You assume thats OK with the parents.
Maybe now the kids moved out they have things they would rather do with their life,
Can always ask. I think in the climate today and the insane prices, Id imagine most parents would be understanding of the pressures involved with entering the market
I bet he was single, before I met my partner it was so easy to save and now the opposite
lawl this is hilarious - $10k in 10 months is nothing!.
Last year I saved about $20k on $36k (after tax), I also went on multiple international and domestic holidays.
This year I will be on about $50k and I intend to save about $30k.
My living expenses are as follows:
Rent: $87 a week (sharing a room in a share house with my girlfriend)
Food: $100 a week
Bills and crap: $20 a week
I drive a motorcycle which is dirt cheap, total cost including fuel, insurance, rego etc. is under a grand p/a.
My living expenses were about $12k, leaving me with about $4k to spend on random stuff.
Rent and ones desire to go out are the two things that drain your bank account.
Having a girlfriend should make things cheaper, you can share food, rent…. etc…
if your gf is a good one. if the gf is wanting LV bag every month?
A gf wants you to take them to dinner, the movies, for lunch, for breakfast, for dessert, on holidays, the list goes on, even if you are splitting it 50/50 you will be doing shit you wouldn't normally do when you were single :p
+1 for your girlfriend - share bills and in a rented house. where can you find? bargain : )
I despise going out for food. I like being super skinny and would rather my boyfriends save the money for other things. Then they get all pissy about it. It's a personal thing, not a gender thing.
I would rather we ate at home and spent THAT food money on something big rather than spend money a few times a week on calorie laden food.
If someone likes going out to eat that often it's a big warning sign. Fattie future.
It's clear you want me to say some extravagant, possibly selfish thing so sorry to disappoint.
Believe it or not I don't like gifts.
The bigger thing would be some personal investment - a term deposit for HIMSELF, savings for whatever he likes.
I find it far more impressive for a guy to save money for a term deposit or whatever than spend it a few times a week on lunch for work (or alcohol). Let alone on food which only fattens me up.
PS - if someone did say diamond rings that isn't to be judged. Diamonds hold their value and are investment pieces for a reason. They last far far longer than weekly dinners.
You are a unique girl, which many guys would be spoiled to have as a partner, you are very wise
The downside i have - I am so frugal it is hard to meet new guys! So I buy tea. Sociable, cheap and low calorie :)
I don't drink anyway but you can't do that alone. It's like going to a cafe and ordering tap water.
Ironically guys only approach me if I'm alone. I have never ever been approached when in a group (of males or females).
@Beethoven: diamond rings as an investment, not really.
Diamonds, maybe.
With rings you pay for labour and other metals which may or may not appreciate. Then there is the fact most people see selling the ring as a failed relationship and wont want that "karma". The exception is if some celebrity owned it but that would be out of reach for most.
Gold seems easier to trade anyways.
true any stone > a piece. But accessibility (physical and financial) limits that for many people.
the issue was not what was THE best investment but whether diamond rings were > food.
And gold value has fluctuated a lot. It's been on decline for the past 3 years and lost A LOT of value the past few years.
http://www.bloombergview.com/quicktake/the-fall-of-gold
There are plenty of assets but their returns are as you know far more complex - stamps, art, stock, land etc.
Sapphires were tipped as the new diamond a few years back.
I recently graduated and this reinforces the job I want. Sigh. I think I screwed up my interview :(((
This is good info. You don't need to follow every tip, but stuff like putting a set amount aside is a good move regardless.
save cash dont check ozb get second job eat instant noodle no gf
no gf ? but he needs sex tho
Mrs Palmer and her five daughters
or eat oats (home brand) - healthier option.. both costs approx the same..
only way to save is to spend less than you earn.
we cant really advise you as we dont know your income/expenses / savings / goal for the next 1.5 years, we know the total goal , around 80k but thats like 4.5k a month over 18 months
dont forget stamp duty and associated legal/inspection costs
just common sense. get more job, more time on the work, less time to spend on shopping etc. more cash in the pocket.
get a job in the restaurant, they give you salary plus meal
You may have to elaborate on "average salaries". According to Australian Bureau of Statistics, the average Australian earns around 60k per year. Combine that with your other half, you should have a combined salaries of $120k a year.
Other tips, pack lunch to work, eat out less including going to the pub. Stock up on groceries when they go on special. Use discounted giftcards where possible. I spend an average of $1500 per month on groceries and fuel, If I can save 5% on that, it works out to be about $900 a year.
You don't need that new phone every 6 months and new car every 2 years or so. I know people who makes half my salary but drives a car that is worth twice what my car is worth.
Such a generic question for a personal issue. Go see a financial planner or get someone to budget for you or put your whole financial details on the forum here.
Stay with your parents, eat out less, bring own lunch to work, stop buying any unecessary items… I also earn average salary and saving $30k a year after tax myself (I also pay rent to parents every month and all eating out etc with bf are split half half)
Just got to start a spreadsheet recording all expenses and see what you can cut down on.
Spend less, look for cheaper accommodation, car pool, make more income
Play lots of lotto, cause that 400k house might be 550k in 1.5years time.
400k house in Sydney. may be closer to Canberra.
Yes i don't mean to be rude, but in 1-1.5 years, you will be fairly lucky to find anything for $400k
i sold my 2bed apartment in Wollongong for $400k, so i don't like your chances of finding one in sydney
congrats 400k richer. slower since Oct but who has the crystal ball.
True, but i had to buy a new place so probably worse off overall haha
Its not so much a crystal ball thing - the rate of increase has cooled off but i don't see it staying at 0% for 1.5years
I'm a bit of a believer that you have to spend some time working hard to get anywhere in life. Not forever, and I pity people who never stop, but enough to get a bit set up.
Some people do it at school, and end up with a good Uni place and scholarships and internship offers.
Others do it at uni/early adulthood and get a great job or get rapidly promoted.
Some do it when they settle down, saving hard for a house and foregoing some lifestyle fun.
My father-in-law did it when his kids were growing up, driving a taxi nights and weekends.
I know a bloke who is doing it in his late 60s because he can't afford to retire yet and maintain the extravagant lifestyle he has always lived.
And I've known a few who did it at the end of their lives as they tried to get by on the age pension in a rental place, with no options for income, just harsh forced frugality.
I was pretty lucky to land on my feet in a good job out of uni, but I worked bloody hard for 6 or 7 years until I was in a place I was content with. You get to pick when you do your own hard slog. It might be to buy your first house, or maybe not, but there isn't any magic shortcut.
Good luck, and take heart you have found a pretty good place to get encouragement.
Hi,muskegs,
I always enjoy your contributions.Just can't stop me to show my appreciation for all your very meaningful write ups. You seems an oldie ( with sincere respect, no other inten) with wisdom.Thanks.
I'm at the stage a few years out of Uni trying to get that higher paying job, I would say I'm in the average bracket earning $54k in Adelaide
Don't they have any assistance for first home buyers anymore? Like 106% loans? I guess they figure if you can't save a deposit, you can't afford a house.
Are there still houses in Sydney for $400K?
Do Uber
On a motorcycle… this is not vietnam
So open an option for doing Uber on Motorcycle. Its another form of Transportation. so why not ?
Good idea but I think it's a massive insurance liability. No insurer would cover you
That was another poster that had a motorbike.
I don think op has given us any information to help give advice.
http://m.smh.com.au/federal-politics/political-news/joe-hock…
Joe hockey said to get a job that pays good money
Lol well he did lose his, already taken though.
Get your parents to guarantor your loan so you don't need 20% and also avoid LMI. It's the Australian way.
Make sure you consult with a lawyer before doing this. If you default, the bank not only takes your property but your parents' property too.
Why consult with a lawyer? The loan being secured against the parents property is the whole point? If your parents aren't comfortable with this they will say 'no'.
Your parents will need to mainly consult with a lawyer to fully understand the risks and implications for acting as guarantors. Some take it lightly and think it's a gimmick within the banking system yet don't fully appreciate how it may affect them.
For example, the asset your parents will be putting up as collateral will become inadmissible should they require collateral of their own in the future.
@slix_88:
Maybe I'm giving the average parent too much credit. Woupd've thought that a reduction in borrowing capacity of the parents would be implied.
@slix_88:
I don't understand the need for a lawyer to tell a person what they already know. "Oh, a lawyer said it. I'm going to consider it more deeply since it just cost me a bucket of money."
we were recently refinancing, and the bank insisted that I get independent legal advice because the property was in my wife's name but loan in both. I argued that I was aware of the risks, and pointed out that the loan I was refinancing was the same, so what has changed since last time. It took a bit of arguing, but when I threatened to walk away from the deal they compromised on a letter stating that I chose not to obtain legal advice (which was also a question on the loan docs anyway!)
Not all people are fully aware of the risks. If your parents are not money savvy and not cognisant of the risks, then they should seek independent legal advice. If they are, then go for gold. It's not something that should be considered lightly especially given the materiality of the transaction.
Go halves with ur parents and build a granny flat onto their house.
Live in it and save the money for a deposit.
He could move to Perth and buy a house in Armadale….
Best way is to live like previous generations e.g. Baby Boomers, they were so much better at being frugal and saving money. Other biggest tip is to get off Ozbargain unless you can control yourself, many will disagree which is fine, but this site makes many on here spend unnecessarily as they become addicted to buying 'bargains'.
You said nothing but the truth. Since joining OZ I am now addicted to buy a lot of unnecessary staff. My wife is going to divorce me soon.
After all the input from many users, not even one input or thanks from the OP. I Guess another 'hit and run' newbie!
can't agree with more.
helped often and now I am thinking it's a waste of time to help out.
I'm still reading random forums a month later so it's not a waste of your time :)
Make more money or stop spending money? What do you define as average wages? If you have parents, you can always swallow your pride and move back in with them and save like crazy.