We are a family of four in Sydney and I am the only earner. I have been able to save approximately 40 k. I really want to move out of renting and get my own place but given the property prices here in Sydney doesn't seem like I have enough for deposit plus being the only earner I want some saving to fall back on in case of job issues.
Is there a way I can still get a property.
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Getting out of Renting but Property Too Expensive
NoBucks on 12/11/2016 - 01:17
Comments
Unlikely that any legitimate bank will accept a 5% deposit, even 10% is a stretch these days.
depend on the income + house valuation mate.
Banks have tightened their lending criteria. eg http://www.smh.com.au/business/banking-and-finance/anz-tight…
maybe they need to pay mortgage insurance… which is not good - if you can avoid this.
Some people I know managed to buy a home in Brisbane with only a 20K deposit. They are paying interest only for 5 years though. Just wanted to say goodluck!!
Kill the inhabitants, buy as deceased estate. Lol jokes.
Move 2 hour out of Sydney Nd the houses should be 250-350k sometimes you can't have it all, either keep saving or move out of the areas people want to be.
http://www.domain.com.au/news/sydneys-50-cheapest-suburbs-fr…
lol
and there are plenty of jobs 2 hours from syd as well..
Lol even 4 or 6 hours ;)
yeh, I moved 4 hrs north of Sydney. Kinda gotta make your own work until you get a real job. Working for a government agency now, Sydney wages while living in the bush! Awesome!!!!
You'll have to increase your deposit and buy a unit far from Sydney.
At some point house prices will slow so maybe just wait and keep saving.
The biggest mistake you can make is to think it is different now to the past and house prices will continue to rise.
Yep, that's what people have been saying for the past 6 years. Lot of good it did to the people that didn't buy. Big mistake. If you think that there's a bubble in Sydney's house prices, think again. It may apply for apartments but never for houses ever.
Basic economics, land = fixed, can barely increase as council releases some tiny spots left (ie. going down, down and down). Then compare this with Sydney's population, going up, up and up.
The supply is going in the complete opposite direction to the demand, thus buy now before the ratio becomes 33x your income like in Shanghai and Beijing. I just wish that they would give first home buyer's like me a chance to get into the market. At the moment the rich investors are dominating the market.
There's a classic case of this guy saying that there was a huge housing bubble in Sydney and he invested all his cash out of houses into gold. Then, house prices sky-rocketed and gold prices plummeted.
Never said there is a bubble. I said at some point it will have to slow. Interest rates will increase at some point. Chinese government at some point will restrict capital outflow. Increase in bad debts for banks will see them put tighter policies on lending. According to ABS bulk of all new jobs are part time. Wage growth is weak and has the RBA worried etc etc
At the moment it is herd mentality that is propelling the property market. A macroeconomic shock can quickly change that.
Fair enough, I also hope that they slow down for houses. Would really like to buy one.
They say rent money is dead money.
But actually interest on a loan is dead money too (i.e. the interest only, not the principle/repayments). The purchase expenses, rates, body corporate fees and maintenance are also dead money really.
For many properties, the rent is actually less than the interest and other expenses. Those properties are often negatively geared.
I am not saying you shouldn't buy, I am just saying renting isn't always as bad as it's made out to be. Don't feel bad for being a renter. It's really good though that you are renting and saving. Some people struggle to put aside for the future and the only way they can do it is by mortgage repayments.
You will have to move out of Sydney, we moved to the Central Coast this year and we are a single income family of 5.
It is tough out there. When we bought our first home it was 18% interest, but if you could keep ahead of the payments inflation paid off the house. Unfortunately that is not the case nowdays. I have no idea where the property market is going, I keep thinking the bubble is going to burst and prices keep going up. I would say don't buy a flat, unless that is all you can afford - houses will always appreciate better. Best of Luck.
Hey mate, there is a way for you with the deposit, not the end of the world if you can't make the 20% deposit, some bank take 5% or 10%, feel free to message me