Poor first home buyers (especially Sydney)

Copying link from SS cause i'm sure there's plenty more that can be said on that discussion

http://somersoft.com/forums/showthread.php?t=109212

 

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There are heaps and heaps of affordable properties in Sydney, all not amazingly far from the CBD either. Its all nonsense that there are no affordable properties for FHB.

Now, if they are not willing to have responsible saving habits, cut out some of the nonsense Westfield shopping, reduce smoking and drinking and have realistic expectations for a first PPOR (ie not a waterfront property or modern home 5km from CBD etc), then of course there are no affordable properties for them! They want what they want, where they want it and for the price they want it for - all with minimal or no planning/effort. Absolutely ridiculous.

My good friend has been saying for years how he cant afford a place etc etc. I convinced him few months ago when he finally hit rock bottom and we made a plan together. Result: He bought a 2 bedroom older unit in Vaucluse, Sydney for 600k!

 

My work colleague (Gen Y, well off parents in India) was looking around for 6 months or longer, kept being outbid by someone else on every property she was interested in. But she was only interested in fairly new townhouses in Girraween and surrounding areas needing no work.

Everything she wanted to buy would be 100k or more than the list price. She ended up finally buying in Doonside, not her ideal suburb. I just hope there is still some growth for her to enjoy.

But I think her spending habits are terrible - she wanted her husband to buy her a big screen TV for her birthday, she bought him lots of clothes for his birthday, they are selling all the furniture they have in their rented apartment (for a song I might add) and will buy all new furniture. Including buying 3 beds (but they really only need 2 beds, one for them and one for their son, her reasoning for buying 3 beds is so "the place doesn't look empty").

I suggested why dont you move your bed (and sofa etc) and she said I dont want to be stuck with it for the next 20 years, the husband wouldn't let her upgrade later if they moved the furniture!

They have to pay something like 15k LMI... what a shocker.

ps. I think she's not very good at her job either. She's an analyst who doesn't have analyst skills. Any problem she has she asks me or our boss and my boss sits there with her for a lot of the time.
When she asks me (she always seems to ask when i'm in the middle of something) I always finish whatever I'm doing and then I help her out... I do say "Google it" a lot.

So anyway, she's supposed to be a developer of reporting, (we both are) and we support some stuff done in Excel VBA. It has only come to light that she had no idea you could record macros in Excel so the code is half written for you already. No wonder she's been asking all these questions I figure are so basic...

She and her family will be going over to India in December for a 4 week holiday and she says she has to give gifts of about 20k when they visit the the relos over there. I said, "what happens if you don't give them these gifts" and her reply was "I can't"... They go back there on something like an annual basis. Omg...

 

Why dont you just worry about yourself?

 

Haha. When you hear the trials she went through for 6 months, continually being outbid when buying.... she is such a shopper.... she is on her phone a lot of the time at work and on shopping websites a lot of the time too while at work... drives me a little mad.

 

Since her research skills are so poor, you are 100% sure she will not find this forum and track your posts eh?

 

That would make for an interesting situation at work haha

 

Lol...

 

@Gockie, it seems a lot of people are like that. It's kinda worrying what the financial situation might be for them later on.

I heard someone comment that their wife and kids were sucking them dry hence they couldn't invest. Then went on to say that cars were a vice for them and it cost a lot of money to race expensive cars.

Now THAT drove me mad. Because this is a classic example of not taking responsibility.

We (monalisa and I) bought a brand new car out of uni in year 2008. That was the first (and hopefully the last) time we financed a car. It's a little Kia Rio. Glad we learned soon enough to not blow money away like that. Not bad to learn at 22/23 eh? It's been a nice little companion to open homes over the year and we are due for an upgrade. But just saying, most people cannot do without these things. Call it ignorance perhaps? And that they don't know a better way? Even educating won't help because one would never learn and change mindset till they are ready and committed to do so.

 

By the way, I tried to help this colleague of yours as she was looking in areas we're familiar with. I texted her but it seemed she wasn't really interested to make an effort to call and was too busy with other things.........I was just going out of my way to help by leveraging my networks and the person wanting the help should ask for it. I felt like I was being done a favour when perhaps it was the other way round?

 

Why waste energy on negative (according to our views) aspects?
They both are working. +
They tried to buy in a place they couldn't afford but settled with a place they can afford. +
They do care about their parents and relatives. +
She managed to find a higher job than her skills set (in your views). +
She is asking for help. +
They are already doing better than many people!

After all, she is working in the same place as you. Manager who thought she was good also hired you!

 

Unfortunately, many will never reign in their spending habits and consequently will remain renters for life. I would suggest most on here don't fall into that category.
Taking the first step, sure, is daunting; but nothing ventured, nothing gained!

 

Many change their habits once they get married/settle down etc and see what happens when money becomes tight. On average only 30% rent, so there's a good chance that they will see the light.

I have known of some who are professional/long term renters and others who through circumstances are renters (sold and looking to buy again) and the other crowd who give alot to their preferred charity/religion.

 

Hi MsAli,
I figured you could help her on her journey and help her get a result a bit quicker as you know the area well and have been very successful in investing in this area. During the time of her search I think her wants might have had to be adjusted down if she was to buy where she wanted. I appreciate that you did take that time to try to help, thanks, even thoygh she didn't accept it. I guess its not for her at the moment. When the student is ready, the master will appear. Maybe one day her mindset will change.

 

Good points. Different plans / strategies make for interesting alternatives.

 

i know the solution!
Earn more money! Good job, good pay. Duh.

 

Just buy something expensive so you'll have to work harder and smarter to make it work haha works for me. I bought a bit higher than what I wanted as a first home but motivated me a lot for work to be able to get more IPs rather than tie my money and since I purchased I have doubled my weekly pay.

 

It doesn't matter what the prices are - people will complain.

I get the occasional local FHBer come through saying how hard it is to buy a house with such 'high prices' - I then remind them that they should be very comforted by the fact they are paying for 300k for their first home in Adelaide, than trying to purchase their first property in Sydney. It's all about perspective.