You misunderstand me WYSIWYG. Not everyone who wants to live in the inner city is a hipster but there is a definite "breed" of the 'young and funky' who would be aghast at the thought of living further than 15km out.
I live 35km out and we have public transport! There are thousands of people who commute into the city for work. Thousands! I did it for years and years. I now work in an inner city suburb and I drive.
The frustrations of the article resonate with me: my parents bought houses worth three times their annual income, ours is closer to six times. Under quoting is a shocking problem in Melbourne, and when we were looking houses sold almost every time for twenty percent above quoted price.
Renting is the only option in most inner city suburbs because there isn't the housing stock for purchasers who have less than a million dollars unless it needs total renovation and these are hotly contested.
I suggest the author looks at units and apartments. The big family home is not available for most people in the inner city.
I agree under quoting is a massive problem. They say you should automatically add 20% to the upper limit asking price as an indication of the true starting price. It is wrong, wrong, wrong.
I don't agree that older generations never had it this tough.
Both sets of grandparents, my parents and my inlaws had it real tough. They saved hard, and my Papa has told stories of only owning one bike, only buying seconds and specials on market days and having a kind aunt who would cook for them once a week. They made sacrifices, and bought what they could afford, where they could afford. My other Nana still lives in the same simple home she first purchased with my Grandad, they didn't feel a need for more bedrooms, more cars, bigger and better stuff. Same happened with my inlaws and parents. Inlaws are now debt free with one home because they worked hard and smart. My parents still have their home and mortgage, they're certainly not investing and driving up prices.
Then there's DH & I. He bought his first home, on his own, aged 21. We're now 28 & 29 and we have a home and an investment property. How can we do it when it's now tougher than ever, but the older generations in our families couldn't when it was easier? Easy. We bought small in the country. There are jobs out here, there is a good lifestyle, and we're still close to the city. We have public transport if you do want to work in the city, but there's really no need. We have everything here without the crowds and higher costs.
My brother and girlfriend are a little different, they do want the city. They're renting and they've been saving a while, and by the end of this year they'll have enough for a decent 2 bed home near where they are now. They just don't go out every single night, they cook at home and they're smart with their money. Honestly, they haven't found it that hard and they're only 25.
In addition, I think it's smart to fund your retirement yourself. The pension will not be around when I retire, and I need to invest now to make sure I can live comfortably later. Yes, there's super, and there's shares, but why not invest in something I can pass on to my kids? There comes a point when it's really not about negative gearing. Especially for retirees, what income do they have to offset anyway?
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