A letter to the young people in Sydney and Melbourne

Discussion in 'Investment Strategy' started by Ald, 15th Jul, 2018.

Join Australia's most dynamic and respected property investment community
  1. Ald

    Ald Well-Known Member

    Joined:
    6th Jul, 2016
    Posts:
    775
    Location:
    NSW
    Dear Young people

    Don’t waste your lives and energy trying to buy a property in Sydney and Melbourne. It will cost you dearly and 20 years later you will regret your lives. I implore you to spend a few hours exploring life in Perth.

    Go West to the beautiful sunsets, clean seas and pristine beautifull beaches of WA.

    Whatever you buy in Sydney you can buy it for more than half the price in Perth.

    Over 30 years you will save hundreds of thousands of dollars which later when you look back and see what would have happened to you, had you stayed in Sydney will cause you to break out in a cold sweat. You will have dodged thousands of bullets by doing so. Don’t burden yourself with a median price in Sydney of $1 million dollars when $500k in Perth will do.

    In WA, Your salary will be higher or similar and your life will be much cheaper and relaxed. Sydney is one of the hardest places on earth to start a life. 20 years later you can guarantee that you will not have paid off your Sydney property, but in Perth you will have done so and have been saving hundreds of thousands. You will be living in luxury in Perth. In Sydney you will have had an entire traffic filled, expensive life with little or no joy living in a now old apartment.

    Why buy that apartment in Sydney that will absolutely cramp your life and if and when you have children will frustrate your relationships to breaking point. That apartment will stifle you and not let you grow. Instead take that same money and buy a big house in Perth.

    In WA you have the best social scene with so many different restaurant, pubs and clubs, safety much higher than Sydney and nowadays the same variety. Far more relaxed and friendly and open people, always smiling and having fun, everyone is healthier, they really are. The people in WA are just beautiful, stunning drop dead beautiful and handsome.

    In WA you can go camping onto the most pristine beaches, you and your loved one can go camping in the beach dunes and walk around naked for days with nobody around, skinny dipping in the beautiful clean waters and enjoying your youth watching the most stunning sunsets.

    If you want to travel you will have the money to, that you won’t have in Sydney and Melbourne.

    Sydney and Melbourne have no future for the youth it’s just far too expensive.

    But let’s do the math.

    In Sydney you can afford perhaps a $650k loan and let’s assume 5% interest rate for the long picture and you also have a deposit.

    In Perth you will get a better property overall for a $350k loan

    You will save a million dollars living in Perth if you pay down sooner.
    Take the smart decision. go West. Invest that extra money in your family don’t give it to the banks that laugh at you paying your Sydney and Melbourne loans in properties they inflated with their politician buddies that sold you for the price of a few beers and a meal at a restaurant.

    upload_2018-7-15_10-14-0.png upload_2018-7-15_10-14-0.jpeg
     
    Orion, Whitecat, Dean Collins and 4 others like this.
  2. ttn

    ttn Well-Known Member

    Joined:
    9th Sep, 2016
    Posts:
    557
    Location:
    Sydney
    Anything for the oldies :)?
     
    Dean Collins and Luca like this.
  3. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    5,751
    Location:
    Melbourne
    You lost young people at the word ‘letter’!
     
    Major, JacM, LIDM and 16 others like this.
  4. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    8,414
    Location:
    Gold Coast
    That is why people are all rushing to Brisbane/SE Qld, people of all ages.

    Big advantage is that Sydney is only an hour away and Melbourne is two.

    I know a number of people who live on the Gold Coast and work in Sydney during the week.

    Don’t go West!! Go North, that is where all the action is!!!!
     
  5. Silverson

    Silverson Well-Known Member

    Joined:
    11th Jun, 2016
    Posts:
    1,149
    Location:
    Melbourne
    What about employment opportunities?
    I know many in their early twenties that did exactly what your letter prescribes, went out west only to find that Melb is where they want to be. Then on the return realised they had been priced out and you know the rest.

    My letter to the young would go more along the lines of work hard, save, be better money managers, don't worry about what your mates on social media are doing and buying and those overseas holiday can/will come later on in life when you will appreciate travel more as your not going abroad to get ****** and fornicate like it's your last day on the planet(where's the fun in that, I know).

    It's not easy and not much fun, but as the saying goes 'you have to be willing to do what others won't to achieve what others dont'
    There's a reason why the states mention are expensive, a reason why the majority migrate/want to be here etc.

    Also let me just say I agree with the overwhelming majority of what your saying, I really and honestly do, I think the issue for many is more what you do with your hard earned and less about where you earn it.
     
    johnmteliza, virhlpool, MWI and 2 others like this.
  6. 158

    158 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,275
    Location:
    Brisbane, Qld
    A 'one man ramp' of WA! :rolleyes:

    Where next? Newcastle? :D

    You dont own property in either of these locations by any chance?

    pinkboy
     
    L3ha7 and inertia like this.
  7. Mike A

    Mike A Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    2,656
    Location:
    UNIVERSE
    Have a balance. Ive known people that sacrificed everything to enjoy the pleasures of travel, experiencing new cultures and seeing the world later in life only to find out that illness or even death made it an unfulfilled dream.

    Live life in balance.
     
    Whitecat, The Prestige, Chomp and 8 others like this.
  8. Silverson

    Silverson Well-Known Member

    Joined:
    11th Jun, 2016
    Posts:
    1,149
    Location:
    Melbourne
    Agree, for me personally a balance is too hard to strike, it really is an all or nothing approach and I actually hate that about myself, not healthy and it covers all aspects of my life from work to all the way to diet.
     
    scientist likes this.
  9. jefn89

    jefn89 Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    183
    Location:
    Sydney
    Haha yeah it needed to be an infographic or GIF ;)
     
  10. Mike A

    Mike A Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    2,656
    Location:
    UNIVERSE
    Ive seen people on an Australian pension living in simple accommodation on the beach in the Philippines. Swimming, diving, fishing, hiking, gardening, learning Mandarin and loving life.

    Ive also seen people earning 300k a year living in sydney, paying off a mortgage and working everyday and find at age 45 they have six months to live and desperately try to cram in all the experiences they wanted in life into that six month period. Hospital vists and treatments that ultimately failed meant they never saw a sunset at angkor wat or travelled down the mekong delta.

    We get one life only and limited time to experience the world. We exchange time for money in this world. Be careful you get it right.
     
    2FAST4U, Orion, Whitecat and 7 others like this.
  11. jefn89

    jefn89 Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    183
    Location:
    Sydney
    Why by a house to live in at all? Rentvest and use the difference to buy investment property or other investments? There's many different ways to get to the same destination although property in Sydney/Melb isn't that affordable, get your point :)
     
  12. Air_Bender

    Air_Bender Well-Known Member

    Joined:
    9th Jan, 2016
    Posts:
    691
    Location:
    Melbourne
    That's easier said than done @Ald. Where are all these people supposed to find work?

    WA’s unemployment rate nation’s highest | PerthNow

    WA job hunters face longer search times as employment market deteriorates | The West Australian
     
    timmy, johnmteliza, Whitecat and 3 others like this.
  13. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.

    I thought most of the action happens down South...o_O





    Ok then.. forget Tassy.
     
  14. Silverson

    Silverson Well-Known Member

    Joined:
    11th Jun, 2016
    Posts:
    1,149
    Location:
    Melbourne
    Again agree 100% with what your saying. I always call money time tokens to my partner, she always gets a good laugh out of it but when you really think about it, that's exactly what it is. Gas bill came in a couple of days ago, 420 time tokens, can you believe it!

    @Leo2413 im with you, I love Tassie, shame about the weather though!
     
  15. Blacky

    Blacky Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    2,066
    Location:
    Bali
    I’ve travelled and lived in many places.

    And what I’ve learned is that where you live is irrelevant to your happiness.

    I’ve lived in some places which make isolated desert communities look like modern metropolis and been happy. I’ve lived on ‘island paradise’ and been left ‘wanting’.

    Who you are with, how much free time you have and how you spend your free time is what makes the difference.

    I remember reading some time ago that there is a strong correlation between commute time and happiness (inverse relationship). The longer it takes you to get to/from work the less happy you’ll be.
    Sorry, I didn’t save a link.

    So maybe Ald is onto something here. However, Perth may not be the right choice?

    Blacky
     
    Trailblazer, Orion, Skuttles and 6 others like this.
  16. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World

    All good, but don't move just yet, cos you may not be able to find a job. Perth has highest unemployment in Oz, and worst economy.

    But I will agree with you with - beautiful pristine beaches

    Disagree with regards to restaurants, expensive and hit and miss in terms of quality and service...... Go to Melb for this one, Syd does not even come close.

    MTR:)
     
    johnmteliza and Silverson like this.
  17. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,701
    Location:
    Melbourne
    So what I think your saying is compromise your lifestyle for less debt?
    My letter would personally be too work harder and smarter and still get to live in the likes of Melbourne the city that continually wins most liveable city in the world.
     
    jefn89 likes this.
  18. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World
    Dem fighting words:p

    Or... best of both worlds, live in both States, perhaps six months in each. Definitely NO for Melb in winter....
     
    Whitecat, Perthguy and albanga like this.
  19. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,701
    Location:
    Melbourne
    Haha I hear that!
    Although my weekend so far in cold Melbourne.
    Stayed the night at Weribee zoo where I got to pat a real life rhino. Woke up to met a Cheetah and then watched lions eating brekkie 10cm away from me (behind glass of course :) ).
    Had a Melbourne latte whilst I’m now on the train to the home of football the mighty MCG to watch my beloved Magpies take on your Eagles. It’s cold but sun is shining and I’m sure a few cold ones will marm the blood ;)
     
    MTR likes this.
  20. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World
    Go Eagles:)

    I just got back from Melb... yike.very cold.
     
    albanga likes this.