VIC The price of lifestyle

Discussion in 'Where to Buy' started by Gypsyblood, 18th Jun, 2018.

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  1. Gypsyblood

    Gypsyblood Well-Known Member

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    So.. I already know this is a bit foolish, but I lived in Melbourne CBD for 4 years before I bought my PPOR at a very convenient location 13 Km away. 3 years later I really want to head back due to the lifestyle and convenience it provides.

    I have heard the Rent vs. Buy argument, but I want a place of my own and being single, dont actually see an issue with buying something that has 2 rooms and renting one out so the cost is somewhat divided while I still get the "i own this place!" satisfaction. I'm aiming for a place around the 400k mark.

    I have equity released and ready to go with a 20 to 25% deposit and able to service a loan and.. I'm not confident I'm on the right track.. That the novelty wont wear off in the face of the fees and rates I will be dealing with. But a part of me is trying to justify it as a lifestyle decision, not an investment one.

    Is anyone here living in cbd, or has bought in an area that didnt make the absolute financial sense but made them happy? Did you regret it? Are you still there with no capital gain and no better off but happy each day to be where you are living? Please comment.
     
  2. Gypsyblood

    Gypsyblood Well-Known Member

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    A comment on the price point, I'm aware that will not get me a great apartment, something barely 50 sqm. And I'm okay with that as that's all I can afford to spend whilst wanting a bit of space to rent out. Some examples of what I'm looking at:

    1604/58 Clarke Street Southbank Vic 3006 - Apartment for Sale #126018502 - realestate.com.au

    1003/241 City Road Southbank Vic 3006 - Apartment for Sale #128558586 - realestate.com.au

    408/673 La Trobe Street Docklands Vic 3008 - Apartment for Sale #128200762 - realestate.com.au
     
  3. Sackie

    Sackie Well-Known Member

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    Life is too short to have regrets. I reckon if it doesn't significantly affect your financial and other goals then go for it. If you can afford to live in a place that makes you really happy then it's worth it imho.
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    A mate bought near Flinders St Stn for one of his kids to attend uni, kid couldn't hack it so far from family & moved back home.

    It is still in a reasonably good area at leases well (for the student market).
     
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  5. GreyGoat

    GreyGoat Member

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    If you are in the position to buy and this is what you want, do it! The rest will follow.
     
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  6. David Shih

    David Shih Mortgage Broker Business Member

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    Ultimately there has to be a balance between lifestyle and investment. No point investing to the neck and not enjoying life! And only you know what will make you happy.

    Plus I'm pretty sure if you keep it long enough it will have capital gain too :)

    Cheers,
    David
     
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  7. TAJ

    TAJ Well-Known Member

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    Life is not a dress rehearsal! Happiness should be paramount in anyone's life.
    If you are not financially overloading yourself, then why not purchase where you desire to live?
     
  8. TMNT

    TMNT Well-Known Member

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    Have never understood parents buying properties for their kids just to attend school.

    Seems so over the top

    Could think of a million other ways that make more sense
     
  9. Smasher

    Smasher Well-Known Member

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    Ha. When I moved out at 18 to go to uni, I couldn't get far enough away from my family.
     
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  10. Marg4000

    Marg4000 Well-Known Member

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    Depends.

    Friend in regional area, four bright kids. Eldest got into Qld Uni, friend bought 2 bed unit close by at St Lucia, extra room rented to friend. Owned unit for over 10 years as all kids attended uni, overlapping at times. Second bedroom always rented when not occupied by family. Sold after all kids finished uni, considerable profit.
    Marg
     
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Many do whatever they need to improve the lives of their kids. (if they have the $$ to purchase an asset and deploy those resources for their own benefit, they will do it - possibly cheaper than paying rent in student accommodation over the timeframe & you have a base in the cbd).
     
  12. hash_investor

    hash_investor Well-Known Member

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    @Gypsyblood have you considered rentvesting ? How about buying interstate with that 20% deposit cash flow +ve and rent in the CBD.

    This is what I currently do, not in the CBD though but I live in a very nice renovated house in the suburb I want to live with a large backyard. I am doing this because I am not sure if I want to buy there right now but I want to live there right now for all the good reasons.
     
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  13. Gypsyblood

    Gypsyblood Well-Known Member

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    Yes I considered it. And keep trying to see that as the better option it's presented as.. I want to own the place though which will cost me just a little more than renting if I'm renting out the spare bedroom.. (the opportunity cost is a whole different discussion). I will also struggle with paying rent plus the new property and it will likely keep me staying at my ppor, which defeats the whole lifestyle motivation..
     
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  14. hobartchic

    hobartchic Well-Known Member

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    Why not rent for twelve months in the CBD and then decide? It sounds like the motivation is more about "grass is greener". It doesn't sound like you are convinced of the move enough?
     
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  15. Gypsyblood

    Gypsyblood Well-Known Member

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    I work there still (though these days my clients are in sydney) and I've lived and loved it for the 4 years I was there.. I'm more hesitant cz i know better now (being on propertychat and looking at apartments being at the same prices (almost) as years ago, plus the unknown of how bad strata fees can get that I never had when renting, plus what if the future changes miraculously, I stop wanting to be antisocial hermit on my own and want to head back to Burbs and a family etc.) So chewing on all that.
     
  16. Biz

    Biz Well-Known Member

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    Just buy the apartment, live your life. Delayed gratification is for the birds. The financial independence ideal peddled on this forum is by and large a fools errand for people under 60 so don't wish your life away.
     
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  17. hash_investor

    hash_investor Well-Known Member

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    Then you should reconsider what you have learned from this forum.

    These lifestyle choices are what we discuss here on propertychat all the time. You are doing very well already from a lifestyle perspective too
     
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  18. Foxy Moron

    Foxy Moron Well-Known Member

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    I'll also have to respectfully disagree on that one. Can think of dozens of examples where humble families from the bush are on their way to becoming accidental millionaires via this very tactic. Most bough ugly houses (not units) in middle ring suburbs and had rooms rented to their kids friends for a few years. Good old property cycle then just does it's thing. Its the one winning strategy Jan Somers never wrote about (to my knowledge) :)
     
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  19. TMNT

    TMNT Well-Known Member

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    Fair enough everyone. Looks like I might need to re assess my view on this discussion :)
     
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  20. Ed Barton

    Ed Barton Well-Known Member

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    I suspect some, at least partly, do it as a tax dodge too.

    If legally owned by the parents and negatively geared the declared rent is lower (but believable) than actual market rent.

    If purchased without debt it might be legally owned by the child but really owned by the parent. No CGT on sale. Flatmate pays rent in cash so no income tax.