Sydneysider to Buy House in Other State - Need Advice

anamul on 30/08/2021 - 23:49
Last edited 31/08/2021 - 00:02

TL;DR Wanted to buy a house in Sydney but can't afford it anymore, where to buy house for living with a good future prospect?

I've moved to Australia permanently 3 years ago and I have been thinking of buying a house for myself since last year with 70K saving (aiming at a 10% initial deposit) but Covid made sure I don't even dare (prices went up around 17% since last year) I've moved here by myself and as a 27yrs old bloke who doesn't have any experience on the property market or doesn't know people with very good understanding, my only source of information is the internet and I thought I'd ask the eagle eye ozbargainers who can find the best info about the market.

It's probably posted here before but couldn't find what I was after. I want to buy a house with a little backyard but would prefer to live around 30-40 minutes driving distance from any state CBD. I'm not married and doesn't have any kid so it's easy for me to move but would prefer to move somewhere with a good prospect in few years and there are jobs in the market (I'm from IT). I'm considering around Brisbane but this is just my initial thought. I'd really appreciate it if I could hear your thoughts or if you could point me to some good resources/forums I could study to make up my mind. Thank you.

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Comments

  • Philthy on 31/08/2021 - 00:08
    +1

    Adelaide
    Hobart

  • Quantumcat on 31/08/2021 - 00:09
    +4

    Canberra is a good place to work in IT. Loads of contracting jobs for the federal government and lots of private consultancies with government clients. You can live anywhere in Canberra and be a maximum of 45 minutes from any other part of town. In Tuggeranong (the extreme south side) you can get a townhouse from 400k+. You can then work in Services Australia which is max 15 mins from anywhere in Tuggeranong. I used to ride my bike to work every day which was only a half hour, from the extreme south end of Tuggeranong. Or you can work at Home Affairs in Belconnen, which is on the north west side. Again, live in belconnen, get a townhouse for 500k+ and be max 15 min from work. There are other departments in the city (the centre). Living in the city is much more expensive (like 600k for a small apartment) or you can commute, 30min max from anywhere, a bit longer from Gungahlin as the main road gets slow in peak hour.

    • jv on 31/08/2021 - 00:18
      +1

      Canberra is a good place to work

      OP, ignore Quantumcat…

      They are having you on…

      • SF3 on 31/08/2021 - 00:35
        +1

        Canberra is a good place to work

        Catch is, no mention of, is Canberra a good place to live…

        • Quantumcat on 31/08/2021 - 08:39
          +1

          Canberra is a great place to live, especially with a family or especially if you like nature or cycling. With a family, there are playgrounds and adventure playgrounds everywhere, and loads of free things to do on the weekend. And preschool is free 5 days a fortnight for 4 year olds. All of the public schools are good. If you like nature, there are bush reserves all through the city, lots of small mountains to climb and you can forget you are in a city and just be surrounded by bird sounds. Climbing one of the small mountains before dawn and watching the sun rise over the city is very special. Plus you are very close to the Namadgi national park (with some serious mountains to climb) and close to the snow. There are cycling paths everywhere so it is easy to get around by bike and you're not often forced to ride near cars. Canberra is peaceful and beautiful and relaxed. Sydney is dirty, crowded, expensive and you have to commute long distances to work.

          • RockyRaccoon on 31/08/2021 - 10:55
            +1

            @Quantumcat: And you can get all the benefits you wont get in private industry. Taxes are still collected and you still get paid.

            Never has a government department declared bankruptcy, phoenixed, or sold off.

            And if you turn up to the meetings, you get your free sangas and juice.

            Peaceful and relaxed, no stress.

          • anamul on 31/08/2021 - 11:11
            +1

            @Quantumcat: I love the way you've put it, I have spent my first month in Australia in Perth and Bunbury, WA and it is beautiful. This was my first time in Australia and once I moved to Sydney the surrounding changed completely. Very fast-paced, crowded, and expensive city preferred by many but maybe not me as I was born and raised in the countryside. I have spent most of my time here working from home (thanks to Covid lol) but yeah commute is a factor. Then again Sydney has much more available public commute than other smaller cities. I will look up more about the job market and as others are saying suburbs around Brisbane has really good and affordable houses which is great to start from my position. I can get a decent house with a 20% deposit without paying any LMI and live within 30km of the city.

    • anamul on 31/08/2021 - 00:20

      I like Canberra as it’s quiet, organised (I feel like so) and close to Sydney but I believe I need to be a citizen to work at federal government offices (I’m still on my PR). I love driving and best part about Canberra roads are they never get clogged as they do in Sydney so easy to plan ahead. Our company has office in Canberra as well so there’ll be few people I can call in the weekend to have a chat.
      Thanks for your advice though, I’ll look up the suburbs tomorrow.

      • Quantumcat on 31/08/2021 - 08:42
        +1

        I believe I need to be a citizen to work at federal government offices

        That does restrict your job options but there are still plenty of jobs that don't require a security clearance. If you have uncommon skills you'd never be out of a job

  • Hybroid on 31/08/2021 - 00:15
    +2

    There are over 3,000 properties for sale in approx 1 hour radius around Sydney for $700K.

    https://www.domain.com.au/sale/?price=0-700000&excludeundero…

    It's not infeasible.

  • StonedWizard on 31/08/2021 - 00:45
    -2

    Why not buy an apartment if you can't afford a house?

    $700k will get you a decent 2bd in a few parts of Sydney.

  • Euphemistic on 31/08/2021 - 07:52
    +1

    Australia is a big place. Start with capital cities, and if you don’t find one of those you like pick the next biggest city and go from there.

  • BlueGlass on 31/08/2021 - 08:42
    +2

    Goodna, Brisbane (Ipswich) - 30 min express train to Brisbane CBD.
    Prices are very cheap (obviously for a reason). But people are going to wake up soon.
    Brisbane does have a technology job sector, especially public service.

  • popsiee on 31/08/2021 - 08:44

    Canberra a good place to freeze your butt .
    No lifestyle there .

    • anamul on 31/08/2021 - 10:27

      Can't deny lol

  • Traveller107 on 31/08/2021 - 09:05
    +1

    Pack your bags and head to Brissy before it becomes unaffordable! Excellent schools, fabulous healthcare, incredible people and glorious beaches 1-2 hour drive away. Job sector is buzzing and housing is booming.

    • anamul on 31/08/2021 - 10:27

      True, I am thinking it will have the same effect on Brisbane after the 2030 Olympics as it had on Sydney.

  • Big Lenny on 31/08/2021 - 09:20

    no offence, 70 grand savings aint gonna get you far in syd

    • anamul on 31/08/2021 - 10:25

      I know mate that's the reality that made me think of moving to another state.

  • orangetrain on 31/08/2021 - 10:49
    +1

    It's easy to get a house for 70k, just have your rich parents pay the rest. Welcome to Sydney.

    • anamul on 31/08/2021 - 11:32

      I love those news articles

  • TheBilly on 31/08/2021 - 10:57
    +1

    I couldn’t afford in Sydney. Purchased in Melbourne. Over 5 years the house went up in value and I also saved some more money. I then sold Melbourne and then purchased in Sydney where I wanted. In the interim period I rented in Sydney in a cheap suburb, that was not where I wanted to live and not ideal, but I sacrificed that got cheaper rent and saved a lot more in the 5 years. My income rose over the 5 year period as well. So when I came to buying in Sydney it was easy. Another thing to consider is if you rent in Sydney cheaper than what you are getting rent on the place you purchased, you might be $200 ahead per month so this all goes to equity or savings. For instance I was renting a Sydney granny flat in the south west not far from housing commission suburbs, but my house interstate was a 4 bedroom double story brand new thing which fetched more. Also another thing to consider is you are single, there is absolutely no reason you can’t live in a less than ideal arrangement to sacrifice for future gain, there is no point in buying a big double story house interstate and then moving into it as this is a dead asset, you will not produce any income from it and the financial input from you is not tax deductible. Purchase interstate and rent it out to somebody else. Make sure your rent you pay in Sydney is less and you will be so far ahead in a few years you will shock yourself.

    • anamul on 31/08/2021 - 11:31

      First of congratulations on your achievement. You planned well and it paid off. I have something similar in mind. Right now I'm renting with my mate and not going to move to a new house right away for the same reason you did. I think I can contribute more to my mortgage while I am single and renting with a mate. I am planning to do something somewhat similar to what you did.

      • TheBilly on 31/08/2021 - 15:28
        +1

        Thank you, It’s not an uncommon process. I'm yet to meet a young person getting into their first property that is going all out buying property in Sydney’s most ideal locations it just doesn’t happen in the mainstream. Almost every young person in my experience has made a massive sacrifice on their requirements, to then move on to bigger and better later down the line - I.e. they’ve gone interstate, apartment over house, outskirts of Sydney etc. The key is to just get into the market in the best position possible where you feel the most growth will occur, once you are in the market, the clock starts ticking to bigger and better. On a long enough time forecast (5-10 years) you are guaranteed to make equity to upgrade, on top of that if you are lucky the time frame becomes significantly lower (1-2 years) but I doubt that after the recent boom so plan for a longer time frame.

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