Earns $60 k net for last 4 years and saves $6000

How can someone on $60K buy a house?

Is it appropriate to laugh?

He lives in share accommodation and pays rent of $11000.00. Complains of being unable to save money and buying a property in Sydney. However, he takes annual overseas trips. Lives in the Eastern suburbs?

I get sometimes it is difficult to save money, but perhaps people to need to harden up and cut back on some luxuries.

 

To me I got the vibe that he's given up on home ownership and hence he goes on holiday.
Had he thought that homes were affordable he might have had a 50k deposit easily in my mind and was actually trying to save

Nurses are far too underpaid for what they do

 

Old mate nurse needs to become an Uber driver between shifts.

 

Sad when your a victim of two colliding forces ..

 

He is saving quite a lot on rent - $900 a week divided by the 5 flatmates. So he is trying to save that way. Good on him.

But what does he do with the remaining $49,000? Assume $10,000 for food, bills and insurance etc. $10,000 for annual holiday.

Still seems like there should be more savings...

 

There must be some serious flaws in his savings plan.

 

Even if he saved more though, on his income, he won't be able to borrow much by Sydney standards. He seems like he definitely wants to stay in Sydney and he is single. He could borrow maybe 500k? So he'd need to save 300k as a deposit to be able to buy an apartment in his preferred location. And that's at today's prices - who knows how much they'll be in ten years. I can't blame him for not seeing value in that and travelling instead.

He needs to move elsewhere. I think his saving would improve dramatically if buying a decent place actually seemed within reach.

 

It's always a choice.

Back in the 1970s when we were saving hard for our first home, I worked with a girl who decided it was all too hard to buy a home so she and her partner spent their savings on nice furniture for their rented flat......
Marg

 

Being the owner of ips ialways ask myself is it worth it.

What's actually wrong with renting?
There are heaps of advantages of renting.

It won't make you rich but if you've got other incomes or are happy to work a bit longer and live a bit more tight.

Then so be it

People make it sound like not having a ppor is the end of the world

 

30 yrs old, 60k net /yr & he has just 6k in savings....... no sympathy at all.... absolutely none.

My teenager has saved a bigger bank balance!

Yes property in Sydney is crazy expensive BUT people like this do themselves absolutely no favours. 30 yrs old & only saved 6k! FFS, I had started a family & was supporting people by then!

This attitude seems typical of city dwellers (& I have been one for a fair chunk of my life) where they think they have some form of entitlement to live where ever they want but whine about not being able to afford it...... dry... your... eyes.... Do what most of the country does & live somewhere more affordable & climb your way up to where you want to be... you only get to start at the top if born into it.... the rest of us work our asses off. Sorry.... but this woe is me attitude is utter crap!

 

It can certainly work. I don't disagree with you there.

I was just trying to see his side of the story as these threads often get filled with clichés about young people wanting everything, having unrealistic expectations, etc.

 

He could buy in tas or SA

 

So he just gives up? He doesn't have to buy in the eastern suburbs of Sydney. He could rentvest and buy in Adelaide or Brisbane and build up his net worth and slowly build up to buying his ppor in Eastern Suburbs. There's certainly ways around it. But yeah he's right, it is impossible if you give up.

 

Unless he gets a rich partner he's confined to renting or he'll have to bite the bullet and move interstate if his goal is to have a PPOR. Living in the Eastern suburbs when he's priced out of Penrith

 

I said he should move elsewhere in the last line of my post.

 

does he need a $300k deposit?

cant he get a 2bdr apartment within reasonable distance brand newish for $550k,

10% deposit,

hardly a bad life!

 

I was saying if he wanted to stay in the same location. Which is why I recommended he move elsewhere.

Why would you pay a ridiculous amount of money to live further out in Sydney (where you are nowhere near most of the attractions you're paying high prices for)? I would rather live in another city than pay 500k for some Sydney unit in the middle of nowhere with a terrible commute.

I got a house in a reasonably central location in Canberra for less than that.

 

He's used to house sharing. He could get a flatmate in to help pay the mortgage.

 

If he learns to save and stops going away for an annual overseas holiday!!!

 

In 4 years, the guy's saved just over 5 weeks' pay.
That's a whole 2 1/2% of his income.
Less than $29/week of his $1,150+ income.
He could try a little harder.
He could easily save 10 times his current effort without a problem.