$2m+ Properties how are they funded?

That goes to show that there's more strategies than borrow IO and never pay off or never sell. Pay it down & realise the gain, so it again. Sure it has high entry & exit costs but there's still room to grow.

It's called discipline, regardless of the value of the property or the loan.

You're right, angel hair pasta takes 3 minutes

Some people have more money than sense, whereas others will direct their discretionary spending towards other things (private schools/tutoring, holidays, investing etc)

Exactly, there are several suburbs which you'd be struggling to find a knockdown in that price bracket.

They can always consider selling and taking a step back down the ladder, super bounces back (hopefully), buying & selling in the same market etc.

 

Hi Scott

No offence, but you obviously do not understand the psychology of people buying 2 M houses ...

Asking them to downgrade to a 600K townhouse is almost Social Suicide...

And that is why they pontificate... and pontificate hoping for prices to go up..

At some point, the Game will be Over...

 

Not kidding

 

You don't ask, you influence. No one is suggesting moving from the Inner West to Dhurruk but to consider downsizing, you can still pick up some horrible penthouses with great lifestyle/views & no maintenance (which is getting to become more important as you start considering retirement).

Personally, I never thought that I would consider a SEPP5 (over 55's small development) but it becomes an option when you approach that age. One near to our ppor, last sold for over $1m pre-last boom (8 or 9 years ago). I wouldn't see it selling for less than $1.8 even in today's market. Lift, 3 units in the block, each has a courtyard/private garden, 3 bedrooms, ens, double garage, security building, no noisy neighbours etc. This is not an option which is open to younger people.

 

Sounds like they are not particularly switched on, and are more concerned about how other people judge them?

Late 50s, i mean sure, it would be nice to retire, but he would only have to wait a year or two and the stock market will be picking back up. But is sounds like he was planning to liquidate to pay for the house, and not just live off dividends? yeah, wow, not great forward planning.

I'm glad I got out of the pretentious-ness of Sydney.

Cheers,
Inertia

 

To each his /her own....

i realise early on to never confuse a PPOR with Investment...(eh...read that again )

The opportunity cost to sit (or live) on a 2 million PPOR in my opinion would be very high ....

(my own PPOR is quite close but i bought it long ago...would i advise my kids to buy a 2 million house as a PPOR ??

Hell no!

 

Agreed, I tell mine to aim higher.

 

Inheriting one would be quite good though.

 

Wow!

 

Just think though, homes in my neighbourhood used to be ~300k at year 2000, now they are 2mill.
So it's not that hard, just go 20 years back in time and buy a couple of homes.

 

not houses took me months to get one then

 

Unbelievable it took months to buy a house. Hope you accumulated

 

Howard battlers dont earn much 20 years ago

 

As an upgrader home it might be ok. If they also have other investments. Ppor cg exemption on gains over a few decades is pretty good.

 

Look like a lot of people assuming that people buying 2m+ house will over reach be their limit. In reality, it is not. Many owning 1.5m+ in Brisbane, owns more than 3 other houses, living normally, and enjoying working... Please don't assume anything, you won't know how other think if you don't know how much they have.

 

There is not a single house (4/2/1) listed under $1mil above the blue line. Few properties near the blue lines are mostly duplexes or townhouses.

 

There won't be many 3/1/1 freestanders either.

 

A couple earning $250k per year combined most likely have $1m equity saved up and applying for a $1m loan to buy that $2m property.

 

You would be amazed that many high income earners don't have that much saved up. From my experience those buying $2mil+ homes need to borrow about 80% often