Having constant anxiety about the housing situation

Lonemoresummer on 31/12/2023 - 12:51

Im nearly 36, and rent, also single.I am in a contract position that earns 144k before tax (contract role, likely to be made perm).

I have around 80k in assets (etfs, shares, bitcoin, gold, cash).

9k car loan. Car is worth about 25k if I was to sell.

I've started to feel like its probably time to buy. I live in the outer eastern suburbs of Melbourne and the prices are depressing me and I'm not sure if I can actually afford to buy anything.

Like two bedroom townhouses in Bayswater, is like 600k. To me this seems crazy but I shouldn't be surprised. I am constantly thinking about how I can't afford to get into the market. I only need a 2 bedroom, something modest but feel like all these new builds are starting off from 600k+ minimum for a basis townhouse. Like I'm not trying to buy a fancy apartment in richmond, willing to sacrifice a social life to live in the burbs.

Am I right to feel anxious about finding something reasonable to buy? It keeps me up at night thinking about where the hell i am going to live. I also think about having to sell the investments in order to afford a deposit as well and wonder if that is the right move.

Financial

Comments

  • BargainMe on 31/12/2023 - 13:10
    +70

    Single on a high income, you honestly have nothing to worry about. The only thing you need to change is push harder to get that contract role made permanent.

    • onemoresummer on 31/12/2023 - 13:11
      +4

      It expires in May, should I start having conversations now?

    • cheekymonkey97 on 31/12/2023 - 13:27
      +40

      $144k isn't high income once you account for paying your own super, annual leave, public holidays, and sick leave.

      • Wiadro on 31/12/2023 - 13:37
        +6

        its about 90k after all that

      • Ade99 on 01/01/2024 - 08:56
        +2

        $144K seems low for a casual / contract role. If / when a perm how much will this be reduced?

        • ezdez on 02/01/2024 - 20:42
          +1

          not sure why this is downvoted - it's a fact that contract roles pay higher, and perm roles the company will try shave some off. just something consider when the conversation rolls around.

      • us3rnam3tak3n on 01/01/2024 - 11:11
        +7

        It's likely 144k plus super, and contractors don't get sick.

        • qwijibo on 03/01/2024 - 22:35

          and contractors don't get sick.

          That is the truth. When I was permanent, I got sick at least once a year.

          Now I'm a contracting whore, I work through it because being sick means the cash stops rolling in.

      • skidexa on 01/01/2024 - 17:59
        +1

        I would have thought they still get paid super

        • R4 on 02/01/2024 - 17:23
          +2

          Contractor rates of pay often include super.

      • dsx2 on 01/01/2024 - 23:00
        +3

        I think were reading it wrong - "contract role, likely to be made perm" suggests its a limited term contract (i.e he/she is an employee but for only a set period of time).

        • illusion99 on 02/01/2024 - 12:25

          Yes that would be a standard fixed term contract (as least for someone in IT). A day rate contact would be closer to $200k

      • Baghern on 04/01/2024 - 19:56

        depending on the industry, a lot of contract work gets Super now, by law

        its weird, and inconsistent as the law changed 3-4? years ago

        Mate has had companies he worked for years ago chase him up to give him super

    • HeWhoKnows on 01/01/2024 - 17:38
      -6

      Agreed

      We are on the cusp of the biggest property boom in Australia's history

      OP needs to stop procrastinating and just get into the market.

      Those $600K townhouses will be looking like bargains in 12 months time!

      • mr_fjackson on 02/01/2024 - 12:31
        +3

        I will bite… Why do you think that ?

        • ChubbyMastiff on 02/01/2024 - 14:23
          +5

          Not OP, but look up this comment chain, due to wage/rent inflation 144k is not considered a high income anymore. Therefore a 600k townhouse in the eastern burbs is only 2-3x house hold income.

          That couples with rental crisis, immigration boom, stage 3 tax cut and likely interest rate cuts, I don't think you can find 600k townhouses in Melbourne for much longer.

          • Sammyboy on 03/01/2024 - 10:23

            @ChubbyMastiff: True, given the massive wage inflation in certain sectors, its made 144k very average. I'm definitely in the wrong job.

          • johnno07 on 02/01/2024 - 23:41
            +11

            @HeWhoKnows: Have you considered not being completely obnoxious?

          • DrPopkorne on 03/01/2024 - 00:18
            +4

            @HeWhoKnows: Bit cringe ngl but thanks for your input?

          • HeWhoKnows on 03/01/2024 - 14:40
            -6

            @HeWhoKnows: Never ceases to amaze me about the number of fools here downvoting COLD HARD FACTS!
            or is it just a matter of jealousy from those that give advice but have NOTHING (assets) to back it up.

            Dear OP

            Take advise from those that have made the money
            Ignore those (many people here) that don't have a brass razoo

            LOL LOL LOL

            • Drakesy on 03/01/2024 - 16:14

              @HeWhoKnows: Your attitude is the same as many of the Chinese in that property could only ever go up.

              Look at their property market now…

            • SwarlesBarkley on 03/01/2024 - 20:03
              +3

              @HeWhoKnows: They're not downvoting you because they disagree with your points, they're downvoting you because of all the uncomfortable small junk energy that you are permeating.

              Sincerely,
              Someone who owns their home.

            • JIMB0 on 04/01/2024 - 08:57
              +1

              @HeWhoKnows: It's advice, not advise.

  • duk242 on 31/12/2023 - 13:12
    +3

    Have you spoken to a mortgage broker yet? They'll help work out how much you're able to borrow if you want to buy a place.
    I got lucky and bought just before the house prices went nuts - $420k for a 4br in NNSW. That was on ~$65k (Before tax) + my partner studying and not making much (she wasn't on the application). We did have a deposit of something near $150k combined though (lots of saving while living with my parents).

    Another thought is you can try to wait out the housing prices - depending on what the government does in terms of housing affordability, house prices could go either way (ie. if they make it less profitable to just buy up shitloads of houses to rent out etc)

    • Mugsy on 01/01/2024 - 08:52
      +24

      Waiting is a losing strategy… not advised.

      There is only one way for housing affordability to improve and that is for supply to catch up with demand which is very obvious at this point it won't happen in a short period of time.

      The politicians keep coming out with figures that the industry won't be able to meet. There's simply not enough trades people nor materials to solve the problem. Building programs by the States will only take resources away from the private sector (it's simply diverting resources towards social/affordable housing… nothing more).

      The last time this happened back in the 1950s, it took two decades for the housing crisis effects to be tackled properly.

      To my knowledge, population growth is currently much higher than back then.

      The advice on talking to a mortgage broker first is sound though.Helps one focus on what they can achieve (or need to improve if they want to achieve more).

      • duk242 on 01/01/2024 - 08:55
        +1

        Fair fair!
        Talking to the mortgage broker took us from "can we even do this?" to "Yeah we can totally get a house lets goooooo!" (Plus - I was 30 and had to move out from my parents at some point or they'd keep making jokes about me being old and still living with them…)

        • Mugsy on 01/01/2024 - 12:48
          +5

          Yeah, I was on ~$42k/yr with a $40k saving in my savings account when I went to see a mortgage broker to see how much I could borrow (and thus determine how expensive a property I could buy and thus what type of property in the location I was targeting that I should look at).

          I didn't borrow to the max of course but it was good to know how much I could bid at during what was a sellers market.

          Those were tough times. My bro and I had moved out of home less than a year earlier. I was in my mid 20s and knew that if I stayed home, my career wouldn't be going anywhere… had to get closer to the CBD. I moved out the day I quit my previous job ($~26k/yr salary) and my bro and I were living off a $50/wk grocery budget which was still a stretch back then. After months and over 100 job applications to the Government (a public sector job suited me more than private), I eventually got a grad position, started getting money in and saved up the remainder of what would become my $40k deposit.

          But I wouldn't do it any other way.

          As much as life is about opportunities, it's also about sacrifices. Economists call it an "opportunity cost". In that, you cannot have everything… to have something usually means to not have something else because there is a scarcity to what your resources and time can be devoted towards. Maybe I subscribe to Maslow's hierarchy of needs too closely but having security over my home/shelter is very important to me. Clearly from the above, I'd make sure I achieved this before thinking about holidays, etc.

  • EightImmortals on 31/12/2023 - 13:15
    +8

    You are concerned about the future, that's not exactly uncommon, none of us have a crystal ball in these things. On that wage you should be fine and I assume you've been able to save a heap of money? As for practical advice, pay off the car loan ASAP before you even contemplate a mortgage. Don't by another car UNTIL YOU NEED ONE. :) If you are claiming car expenses as tax deductions then you should be able to get at least 15 years out of a decent car.

    "It keeps me up at night thinking about where the hell i am going to live."

    Where do you live currently? You already have a place to live. Is rent 'dead money'? Sure, but so is interest paid to the banks, in the end, unless you pay it off quickly you're lucky to break even. The cost of housing is insane in most of the western world right now, bide your time and save as much as you can in the meantime.

    "I also think about having to sell the investments in order to afford a deposit as well and wonder if that is the right move."

    No savings then?

    Maybe look to where all your money is going, do up a budget, that kind of thing.

    • onemoresummer on 31/12/2023 - 13:40
      +1

      I have around 35k in cash. My rent is $1800 per month.

      • EightImmortals on 31/12/2023 - 14:52

        No worries, keep an eye on the market but prepare to buy when the opportunity presents itself. As I said, get out of debt as a soon as you can and make saving for a home deposit the priority. At least you'll be doing something proactive rather than doing nothing like a deer in the headlights. :)

      • charmed_tiger6 on 01/01/2024 - 11:05

        I currently pay just over $3000 per month on a $500,000 loan with the current interest rates. Make sure to save as much as possible if you really want to buy and you’re most likely to get a loan if you have a permanent job with a decent income, a good deposit with proven savings history, no debt and make sure you have closed any split payment services (Afterpay and Zip for example) before you apply because they look at those similar to credit cards with the limits being an issue.

      • Devaust on 02/01/2024 - 01:17
        +2

        I wasn’t very smart with my money when I first started my job. For first 8 years of professional career I made average ~ $100K+ (2008-2016). That was good money back then. By 2017 I had savings less than $100K but finally paid off car loans etc.

        I think you’re gonna get a lot of advice on budgeting etc. Without knowing your actual finances (and you shouldn’t disclose that here), it’s hard to determine your financial habits. But based on what you’ve provided; your current total liquid wealth is not as high as where it should be (again I’m not criticising or grandstanding as I’ve been there)…

        You don’t have to see an accountant & most financial advisers that don’t work off commissions will NOT even accept you as a client due to your low net-worth & current projected wealth generation value. Sorry this might be your first cold but probably needed hard truth.

        So my only advice? Try your best (and I mean you really must do this):

        1) calculate your total take home pay (generally fortnightly/monthly) AFTER tax & super contributions

        2) deduct your ABSOLUTE NECESSARY costs which really should just be; debt obligations (not gonna get into how you got into the debt etc), insurance, rent, utilities (NOT your subscriptions) & food (my family of 3 lives off ~ $500 per week so you should be far less).

        3) if what you have leftover is still > 50% of your after tax income than you’re doing good & you should be looking to cut/trim every other expense to essentially ensure you’re saving ~ 50% of your post tax pay check.

        4) if your total fortnightly/monthly savings is less than 25% of the corresponding pay check post tax (rule of thumb), then you have very bad financial habits…

        The reason I’m offering you this advice is because the 50/50 rule will set you up for success for your first & many more houses or whatever you choose to do. When it comes to forming sustainable good financial habits; the simple it is, the better chance you will succeed.

        Also spending $15K for a holiday is a luxury. I know it’s a contentious topic as at the end of the day you have the right to spend what you earn on anything you like. Ultimately, real wealth generation & getting into property market without sinking into a forever mortgage requires fundamental real sacrifices. Sorry that’s life. Unless you earn more, inheritance whilst maintaining your current level of spending habits.

  • plasmog on 31/12/2023 - 13:16
    +25

    Your mailn issue is an atrocious savings rate. At 36 you have probably been working what at least 10 years to save 80k? Better than some but with your income you should be saving that in 18mths.

    The fact you have a car loan is ridiculous, pay cash.

    600k for a townhouse is cheap and easily affordable for someone on 144k income who doesn't blow their money, try finding that in Sydney.

    • onemoresummer on 31/12/2023 - 13:44
      +1

      I really don't think i blow my money.

      I went overseas this year which was about 15k but I dont drink or smoke or gamble or go clubbing. I do have personal training twice a week, which is my only outlet if im being honest. And I enjoy it immensely.

      • Kail on 31/12/2023 - 15:24
        +19

        I have to agree with plasmog here, your numbers aren't adding up.
        Your savings should be into the 6 figures after a decade of work on decent wages, and a 600k home should be affordable to you.

        I'd recommend making a budget to get an idea of where your money is going.
        Go through your bank statements from the past year or two, and see how much different things add up to.

        • drprox on 01/01/2024 - 15:00
          +2

          I agree but I'm not prying for info. OP can go review his numbers and of course cost of living is high but it isn't THAT high if you're really trying to save…

          • Kail on 01/01/2024 - 16:59
            +1

            @drprox: Yeah OP doesn't need to share his budget, but he does need to do some budgeting to become more financially comfortable. He has the income to support his goal of buying a townhouse, he just needs to work out how to better redirect his funds towards building up his savings more and making sure that he can cover the mortgage comfortably without losing things that are important to him like his PT sessions.

            Budgeting isn't about being a tightass, it's about understanding where your money is going and making sure the majority goes towards things you really care about, for both now and the future. It's such an important life skill, they really should teach it in schools.

      • lachhelix on 31/12/2023 - 22:16
        +24

        Just ignore the internet warriors on their high horse my friend - this is your current situation - you have a job, you make money, if PT is something you enjoy then you can absolutely spend whatever money you like on it

        As much as I love ozbargain life's too short to be arguing over cents.
        Speak to a mortgage broker to find out your borrowing power and see what suburbs are affordable in your current position, and if whatever is affordable in your current position isn't suitable/doesn't fit, find out from the broker what is holding you back (income or savings) and work on that with a budget (as suggested by a couple of other people)

        • SlickMick on 01/01/2024 - 12:31
          +8

          Sure, OP could continue to enjoy life and not put much aside, but that attitude tends towards poverty rather than establishing yourself.

          I can't fathom having cash but paying interest for a car. But holidays can be a good investment IMO.
          These "internet warriors" are giving OP sound advice IMO.

          • watwatwat on 02/01/2024 - 12:19
            +2

            @SlickMick: Also considering the time value of money, it is better to make sacrifices as early as possible.

            Imagine if this person saved more years ago and had been letting investments compound for years. That means free money for doing nothing.

            Better to save early and waste money later, rather than the other way around

            • SlickMick on 02/01/2024 - 16:03
              +2

              @watwatwat: It's hard to make a young person understand this, but those that do are so much better off

      • rumblytangara on 31/12/2023 - 23:12

        Was that a single holiday, and a once in a lifetime event? I don't think we've ever managed to spend 15K on a single holiday, and that's for a family with kids.

        • Zacsik on 01/01/2024 - 12:01
          +4

          Really? Flight, accommodation, etc everything can run you this for a trip to Europe easily.

          • rumblytangara on 01/01/2024 - 12:06
            +2

            @Zacsik: Up until recently we were based in a major air hub so flights were much cheaper than here and we would choose nearby destinations. But in Oz, we would not spend that much money on a family holiday- if we were flying intercontinental (North America), it would involve free accommodation to visit family, and we wouldn't even consider the idea of dragging primary school aged kids to Europe- they would simply not appreciate the experience enough to make it worthwhile.

            So yes, I cannot understand how a single adult could spend that much on a holiday unless it was something very much out of the ordinary.

            • Zacsik on 01/01/2024 - 12:14
              +7

              @rumblytangara: Definitely agree with what you are saying - but a trip to Europe, by definition, is out of the ordinary for most Australians.

              I have been doing the costs for our next trip, and flight and accommodation for a month alone has already added up to 12k.

              This is after exploiting cc points for flights, citibank 4th night free for accommodation, staying with a friend for one leg etc. It all adds up.

              Then you have to account for rail travel, sim cards (bought on ozb deals), food, tickets for museums.

              I am estimating about 20k for two us for one month alone. I don't think we have been extravagant in any of the places we are staying - like 3 stars but with with good google reviews. So 15k doesn't come out as a great surprise to me.

              • BepisCola on 02/01/2024 - 07:35
                +1

                @Zacsik: Sounds about right to me, I’m planning a two month trip as well and I have estimated that at over $40k for two people

              • ThadtheChad on 03/01/2024 - 00:21
                +3

                @Zacsik: I think you'll find that traveling "standards" vary a fair bit between individuals. Some folks love to travel in the lap of luxury; some travel like refugees fleeing a war torn nation… and then there is a wide spectrum between.

                When we were younger, wifey and I used to travel on a shoe string and could really make the dollar stretch.

                Now we value comfort and a bit of luxury; after all holidays are meant to unwind and destress - if something makes an experience more relaxed and comfortable and it doesnt cost a bomb, we consider it money well spent. Throw a wee baby in the mix and "nice to haves" become essential. We take a lot more taxis while traveling, eat at nicer places, stay in service apartments or hotels with slightly larger rooms.

                So yeah, 15k for a single person can be egregious or absolutely fine. Having said that, given OP's salary and intent to buy a home, a 15k holiday isn't easy to justify (unless it was a bucket list item; or a once off - after all sometimes one really needs a good fancy holiday to right the cart).

          • Eeples on 02/01/2024 - 08:05
            +1

            @Zacsik: Totally disagree.

            I had 3 weeks in Italy and Greece in Feb/march 2023.

            Winter way cheaper.

            Flew scoot, stayed in very decent off peak $100/night accommodation. Went on day tours every 2nd day, ate and drank well.

            Under $6k

            • Zacsik on 02/01/2024 - 10:50
              +2

              @Eeples: Yes, but different countries cost different amounts. Switzerland / France is far more expensive than Greece. Like I have said in my previous post, this is an out of the ordinary trip, so not something we intent to do every five years etc.

              All I am saying that 15k is not a huge amount for a trip depending on where you go.

      • drfuzzy on 01/01/2024 - 15:20

        Suggest posting a breakdown of your budget.
        You have discretionary spending like overseas trips and a personal trainer.
        Something is very wrong to have savings that low at 36. I'd identify that problem and solve it before doing anything else. You won't like it though.

    • cheekymonkey97 on 31/12/2023 - 14:28
      +45

      18 months to save $80k on a $144k contract?! HAHAHA wtf are smoking mate. This is the real world, not some fking fantasy that you're living in.

        • EightImmortals on 31/12/2023 - 14:53
          +7

          Do we really want to live like that?

          • Hydralyte on 31/12/2023 - 15:34
            +3

            @EightImmortals: I tried. Takes too much effort

          • JIMB0 on 01/01/2024 - 10:19

            @EightImmortals: It's a means to an end. Then when you're debt free you can spend up big on all these things you went without. Then release you weren't really missing that much anyway.

        • Smol Cat on 01/01/2024 - 02:37
          +1

          Wtf is your source of this bs claim? Absolutely ridiculous claims.

      • onemoresummer on 31/12/2023 - 15:33

        What's a more realistic target per month?

        • Hydralyte on 31/12/2023 - 15:35
          +2

          80% of your spare cash after bills

      • djsweet on 31/12/2023 - 18:13
        +23

        Agreed lol. 144k contract is like ~100k once you subtract holiday entitlements and super. Take home is like 70-80k. Then once you take out rent and bills you got like what 30k for everything else? Max savings you could reasonably expect, keeping everything really tight and practically unbearable is 20k. And probably OP hasn’t always been on his current salary

    • umoddbro on 31/12/2023 - 23:11
      +7

      Yeh agreed, 80k savings at 36 and still has a 9k car loan. Where's all the money gone? Not bagging on you OP but just genuinely curious since you say you don't drink, smoke or gamble then where is it all going. Do you eat out a lot? buy a lot of clothes? I think you need to do some serious budgeting….

      • wau2 on 01/01/2024 - 07:38
        +18

        Probably been on low wages until recently. So savings only probably last few years

        • umoddbro on 01/01/2024 - 09:11

          That's a fair point.

    • Korban Dallas on 01/01/2024 - 18:22

      I was on 15 to 40k jobs between 15 to 20. Saved over 100k, single

      Also moved away from family so paying rent.

      Granted I still had fun.

  • MS Paint on 31/12/2023 - 13:23
    +14

    You seem like a lovely person. All the best.

  • SBOB on 31/12/2023 - 13:23
    +6

    144k before tax (contract role, likely to be made perm).

    9k car loan

    Unless there's some sizeable financial disadvantage to pay this off, you should be able to clear this debt in a few months easy on that salary if you were serious about it? Make it your new years resolution.

    • onemoresummer on 31/12/2023 - 13:40

      That sounds like a good idea. I am still yet to do my tax return which is 4k back so I will put it towards that.

  • Dollar General on 31/12/2023 - 13:25
    +1

    I bought my first house in 2001 when property prices were rocketing (sound familiar). I paid $270,000 & I was earning $35,000 a year back then. It was a stressful time. It gets better over time as the mortgage slowly goes down but your income should be going up.

    Sold the house 9 years later for more than double as again prices were rocketing (sound familiar). Sold into a hot market but bought in the same hot market too.

    Buying property is always stressful. Rent out a bedroom if that helps

  • mskeggs on 31/12/2023 - 13:35
    +4

    I know I sound like a boomer, but you will be stressed if your first home for an individual needs to be a townhouse or multiple bedrooms.
    Just find a small and reasonably affordable place where you want to live and start paying it off. In 5 years you will have paid a mortgage down a bit, the value will have gone up a bit, and your earnings will have gone up a bit, and maybe you won’t be single - then getting a bit bigger property is less stressful.

    Servicing a $520k mortgage on $144k is very possible, but likely will require deprioritizing dining out/drinking out/personal services. If you don’t want to give these up, then don’t, but make it a conscious choice that you are choosing to remain renting, so you aren’t anxious about having to make the decision.

    • onemoresummer on 31/12/2023 - 13:41
      +3

      I've always been told 1 bedroom apartments are not likely to increase in value?

      • mskeggs on 31/12/2023 - 13:59
        +6

        So what? Can you buy one for $150k? Of course they increase in value.
        Is your concern about making a premium investment return or getting a roof over your head?

        • Protractor on 31/12/2023 - 14:19
          +2

          That question sums up the unbelievable streak running through this post

        • onemoresummer on 31/12/2023 - 15:33
          +3

          In melbourne..doubtful?

          • mskeggs on 31/12/2023 - 15:48
            +8

            @onemoresummer: That's the point. The prices of all properties increase. Some investors think it is better to get a 2br, some will only buy houses.
            Is it really more sensible for you to spend years anxious so you can save to get a premium property for your first home, or maybe buy a property you can afford now and lose the anxiety?
            Up to you, but to me the idea of living with anxiety because someone told me a 2br is the better investment seems silly.

            I looked on realestate.com.au and there are dozens of apartments you can buy right now within 10km of the CBD. If you're worried, why not go buy one?
            If you aren't worried, keep saving for years to come till you can afford something costlier, but do you really think you would be upset if you had bought a 1br apartment 5years ago and had begun to pay it off, had no rent for 5 years and had 5 years of price gains?

            I don't understand what you are asking.
            The answer is different for an investment for someone who has a home and is thinking about another property versus someone depressed and anxious about finding a place to live.

            • DustyAfternoon on 01/01/2024 - 02:24
              +6

              @mskeggs: The Melbourne apartment market is a bit of an oddity.

              If you look at the sales history for those cheap apartments, you’ll find that they’ve, at best, traded sideways for the last decade-ish. You’d literally have been better off renting and putting the difference into the ASX.

              My personal theory is that almost all cheap newer apartments have pretty significant issues, resulting in sky high body corp fees, which in turn drives down the selling price. Another factor is that purchasing/funding new builds is one of the only ways overseas money can get into the Australian market, so it causes a glut of those sorts of apartments.

              There are some good apartments in Melbourne, but I personally wouldn’t touch most of the newer ones.

              • xiabonan on 02/01/2024 - 13:18
                +1

                @DustyAfternoon: It's not really an oddity. Even in Sydney most apartments have not increased much in value (if at all) over majority of the past decade. 2016-2017 was probably the last peak. If you bought after that and held it to this day, chances are you would have been better off, like you said, rented and put the money into ASX.

                • ThadtheChad on 03/01/2024 - 00:39

                  @xiabonan: Highly dependent on the area though in Sydney.

                  If you're in a suburb that has a high demand, apartments will still have significant capital appreciation. If you buy in Lakemba or Merrylands… perhaps not.

                  Example: The rental we were staying in prior to purchasing our PPOR (located in Rhodes), was a decent 3 bedder (2 bathroom; 2 car secure garage). The owner purchased it for under 730k in 2010 if I remember correctly. At present, similar apartments are selling for 1.48 to 1.6M. The valuation when we left the apartment well over a year ago was approximately 1.3M (we asked the assesor when they came to visit).

                  • xiabonan on 03/01/2024 - 12:34

                    @ThadtheChad: True it's location dependent, but also, like you said the owner bought it in 2010. Plus it's a 3b2b with 2 car secure garage. Nowadays most apartments are 2b2b or even 2b1b, and it's not uncommon to see 1b1b ones. A friend of mine bought a 2b2b apartment in Eastwood in 2021 for 1.04 million now it's worth about 50k to 100k less than that.

                • Baghern on 04/01/2024 - 20:07
                  +1

                  @xiabonan: LOL

                  Sydney here…. Apartments have definitely increased in the last 7

              • Brianqpr on 02/01/2024 - 13:27
                +1

                @DustyAfternoon: Indeed and I've seen good examples of this with apartments bought in SMSFs (Melbourne and Brisbane) which have made nothing or next to nothing in a decade. Those people would have been miles better off staying in the industry/retail super funds they were in originally.

              • nea ozb on 03/01/2024 - 10:27
                +1

                @DustyAfternoon: It's only a matter of time before some nonsense happens like the apartment bin chute needs to be replaced. Happened to a mate of mine living in Swanston Central. Owners Corp says it's gonna be something like 150K to repair due to how the place is built… 'til it's repaired he has to tow all his trash from level 70 to ground.

      • Seaword on 31/12/2023 - 14:38
        +2

        Its true.
        Get a two bed and you have the option to rent out tye second room if things get harder.

      • hasher22 on 31/12/2023 - 15:04
        +1

        1 bedder units are good if you plan to live there and move out in the future and put it up for rent.

        But to sell after you left, no. You best bet is to rent it out.

        A 2 bedder, 2 bath is what people usually tend to gravitate towards these days.

        Also units in general don't increase in price unless it's in a prestigious, sought after area. For example in Sydney the east coast units will go up but the west won't.

        The investment is with the area and land.

      • mitt on 31/12/2023 - 23:36

        They are more stable, but do increase. Single/2bdr places tend to be more insulated from the greater market swings. My prediction is they will increase more due to the drastic jump in people with no long term partners/families coming down the pipeline.

        • May4th on 01/01/2024 - 14:28
          +2

          2br has a much broader appeal. People like to have a study for wfh if you are single

  • dcep on 31/12/2023 - 13:39

    Am I right to feel anxious about finding something reasonable to buy? It keeps me up at night thinking about where the hell i am going to live.

    It depends on your mindset on wants vs needs, as you're still single, yet to build a family, you still have time / choices, but if having your own place for yourself is your lifegoal's priority for the sake of freedom/feeling secure/etc, then i'd just bite the bullet but that's just me.

    Or if you could negate your wants with the mindset of abundance, that is to not limit yourself on owning a place being the only focus of your life. There are many other lifegoals that you could explore, at the same time continues building up your wealth.

    If you're still looking to buy to live in, anytime is a good time as long as you're financially viable.
    Don't time for housing crash. Australia's last housing crash was over 35 years ago and plenty were calling for another crash ever since.

    Even when RBA raise rates from 0.1% to 4.35% / homeloans sub-2% to 6% variables at the fastest rate over <2 odd years, people still calling crash all the way but property prices have now been higher than ever surpassing back then RBA 0.1% era.

  • Hydralyte on 31/12/2023 - 13:50
    +2

    Just buy a house far away from the city centre near a train line.

    • onemoresummer on 31/12/2023 - 14:05

      Im looking 25km out from cbd.

        • Hardlyworkin on 31/12/2023 - 14:39
          +1

          What's a traditional family? One where the parents are divorced? Who said Op wanted a wife?

          I'd rather go with a partner that is your equal and wants what you want. Failing that, a rich one!

            • Randolph Duke on 01/01/2024 - 09:01
              +1

              @nobro25:

              He explains it well what a tradition woman is meant to be.

              $144k will be tough to support a stay at home wife and a mortgage/living expenses.

            • nea ozb on 03/01/2024 - 10:29
              +2

              @nobro25: That Myron chap is just one letter away…

        • try2bhelpful on 31/12/2023 - 15:45
          +1

          Huh? If you want to quickly pay off a house the very last thing you want is a traditional wife. You want someone with education earning big bucks.

        • onemoresummer on 31/12/2023 - 18:39
          +6

          I'm gay. It's harder for us to couple up.

          • try2bhelpful on 31/12/2023 - 18:48
            +5

            @onemoresummer: Harder but don’t lose hope on that either. We’ve got a gay couple opposite us that have been together for many years. They have the most amazing rooftop garden.

            I’m not going to tell grandma how to suck eggs, it is your life, but, hopefully, as the stigma is removed from gay couples they will just become as boring as everyone else.

      • Protractor on 31/12/2023 - 16:44

        24kms is a better idea

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