Now housing prices are skyrocketing and in Sydney the average house price is over $1m.
For those first home buyers (20-30’s age
Group) how do you manage mortgage payment and living costs altogether?
First Home Buyer Mortgage Payment and Living Costs
Unacceptable on 30/09/2021 - 21:46
Comments
It was my colleague who is in early 30’s, married and recently snapped an Eastern suburb town house which I guess it would price over (or close to) $2m. Say he and wife had some good amount of deposits but still the monthly repayment would be quite stressful?
I mean it all depends on different people's scenarios. A 33 year old with 10 years professional experience in a skilled high-demand job like Engineering would be pushing $200k salary here. PMs are about $250k. Market is currently red hot and some are paying even more too.
That alone is more than enough for a $3,000 mortgage which is average for ~$1-1.2m property moving out to Western Sydney.
Having 2 people working and contributing could indeed feasibly stretch for a $2m property.
PMs aka dumb engineers who did a tafe quality course because they cant do maths or physics
That makes sense. PM = Prime Ministers right?
@JDMcarfan: Engineering Project Managers. They will have Engineering backgrounds and reached at least Senior level before moving sideways to a management role.
They may not necessarily all be Chartered Engineers (requirement for Principal Eng level) but should have PMP accreditation.
This problem has been there and magnified since late 90s, when you look at the price to income ratio, the current 20-30s weren't born yet.
The problem has been relatively the same, just the absolute number has moved up (income and price, and ratio stay around the same over the last 20-30 years).
However, like what Hybroid said, the income of those 20-30yo from say 20 years ago (now 40-50s), meant they could probably afford to keep up with the Jones now.
It takes time to save up or acquire "sufficient" wealth… How many years ago, could most 20-30yo, be able to afford their own homes?
Interesting article.
I was curious about the housing stress (if it is paying more than 30% of its income in housing costs) as most first home buyers would struggle to pay for more than 30% of their income for $1m house so to speak.
Can’t be done. Younger Australians have been financially raped by older Australians. And the government let it happen.
the government have a vested interest
And your solution would be…..?
Easy for people to make snide comments and not have sufficient brain power to string more than 2 sentences together and come up with a conclusion :)
It's a complex adaptive problem, where by it's not something that can be fixed by removal/change of an element in the system, but requires everyone in the system to change their attitudes, habits, etc…
As humans, most of us like to maintain our habits and when things don't our way, people tend to "externalise the enemy" as to the reason why things are not working out. A look at history, we have seen some movements have managed to gain enough momentum to over throw governments or at worst blaming non 'native' people for their troubles…
bow
The ‘now’ young Australians are waiting to become old so that they can do the same to the future young Australians. It’s a vicious cycle that will repeat generations after generations.
I bought my place on the central coast 5 years ago but if I was a first home buyer now I wouldn't be able to afford anything in my local area. Let's hope for the younger generations that with WFH things will spread out more and it will be easier to get good paying jobs and be able to live in affordable places in Australia.
what a crap load of Govt, and crap load of people we are. I can't help but feel sorry for the young generations. All politicians have vested interest and they want to make millions. After a while the inequality will raise so will be social instability, crime etc. We are brewing a catastrophe.
You manage all that with negative gearing, grants, money to landlords if renters cant pay rent and then buy more properties as investments/inheirtance as house price rise and Australia is one of the few countries that doesn't have an inheirtance tax.
Why not, the major parties treat land/properties as an investment, not as a necessity. That's why I support minor parties.
The wife and I bought our first house in Sydney a few years ago.
We started in a 1b unit where we lived for 5-6 years and saved.
We budget everything.
We borrowed an amount we were comfortable with based on our salaries, expenses and the possibility of rate increases.I would move state before i lived in a 1 bedroom unit for 5 years.
worked and saved my ass off when i was in my early 20s, bought a property in 2014 with 100k deposit
paid it off last year, happy days
You manage your mortgage payments and living costs by only buying what you can afford - not what you want. That seems to be lost on a lot of people
Live in Brisbane.
how do you manage mortgage payment and living costs altogether?
It usually comes down to priorities.
The average person can't expect to be able to do fine-dining every night and still be able to pay off the mortgage on a mansion.
Got to give up one or a few things to get something else.Avo-on-toast or owning a home….. make the choice!
Boomer alert
Hahaha actually Gen Y here :)
I guess my point is people need to learn how to save. I see it in my friends all the time - want to eat out, drink out, UberEats, Apple devices, etc type of lifestyle - but complain they cannot save for a deposit. It just doesn't make sense to me.
The housing affordability crisis is real - I know of plenty of wishful homeowners who don't indulge in the old 'avo'on'toast' and are struggling to save a deposit… it's not as black and white as what you paint it, thats all!
Move to a cheaper city. There is 5+ cities you can get a house within 40 kms of cbd for less then 400k.
This is only a Sydney and Melbourne issue.
20-30s aren't usually buying $1m houses I would think.
Maybe more so those in the 30-40s demographic with solid Senior+ level salaries whereby the ~$3,000 they would pay monthly rent (living in CBD, North Sydney, North/Eastern beaches apartments etc), it's simply paid towards a house mortgage instead, so no huge difference in expense there.