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What to advise your grown up childern in Sydney marketplace

Discussion in 'General Property Chat' started by MoneyMan, 3rd Aug, 2016.

  1. MoneyMan

    MoneyMan Active Member

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    Hi all,

    Just looking for some general advice here folks (and I know circumstances are different)

    What would you tell your son or daughter to do in the current Sydney market...


    My situation: 31, married, no kids,both working average $60K jobs, at home with inlaws

    Im thinking: buy future PPOR and rent out, rent close to work/parents and have kids in the rental property, after 2-3 years move into PPOR

    **not looking for a "100% this is what you should do answer", but many different ideas from knowledgeable people would be great

    John
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Save in something that will return capital and dividends eg Managed funds
     
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  3. JohnPropChat

    JohnPropChat Well-Known Member

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    Sydney too hot, buy elsewhere and continue to rent until you can pick up something you like in Sydney and then rent that out as well and continue to rent for a few years until you really know where you will want to live - considering kids education, your work place at that time and all that. Good luck.
     
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  4. Nemo30

    Nemo30 Well-Known Member

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    Move somewhere cheaper with good job prospects...Canberra for example.

    Invest in other markets.
     
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  5. EN710

    EN710 Well-Known Member

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    Move somewhere cheaper and where they can still enjoy themselves?
     
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  6. monalisa

    monalisa Well-Known Member Premium Member

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    @MoneyMan

    As you would appreciate Sydney has grown significantly over the last few years, I think it would be worthwhile looking at other markets to build on your capital base. Whilst no one knows what the market would do, but if other markets present better opportunities, you can invest there, and bring money back to Sydney down the track to fund a PPOR here in Sydney.

    It is great you have the support of your inlaws and can live with them, so maximise this opportunity to save up, invest, and multiply your capital base.

    All the best!
     
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  7. datto

    datto Well-Known Member

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    I remember my dad telling me:

    "Datto, don't be like me. Get divorced nice and early on, so that you have time to rebuild your life"
     
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  8. WattleIdo

    WattleIdo renovating Premium Member

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    All of the above. Especially, get out of Sydney. It's a waste of time, energy and especially money. Go somewhere else for a while and watch your savings grow.
     
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  9. Ted Varrick

    Ted Varrick Well-Known Member

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    You should be thankful, Datto, that he gave such wise advice, and not something like "That Black Caviar, don't double up on it, it's a conspiracy and is probably Fine Cotton just given another run!"...
     
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  10. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Other than buying interstate I would also actually be looking to buy an older (sound) house on good land in or around Blacktown for 600k to be honest. Sydney may or may not keep booming, but at least that's a foothold in a part of Sydney that could almost be considered middle ring as houses and land starts being developed further out. I think that still represents good value.

    I'd rather that than spend the same in Central Coast or Illawarra, its just more central. I think 600k Blacktown properties will become scarce and those prices will push upwards. 600k generally only buys a 2br apartment elsewhere in Sydney, so I'd go for that house on land.
     
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  11. Vicki S

    Vicki S Active Member

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    My advice to my kids is buy a unit where you want to live. Make sure you have room to accommodate kids. When you earn more or have more equity trade up to something bigger. If you buy and rent out the property straight away you have permanent CGT issues unless you move in for a while immediately after purchase. Buying elsewhere (interstate or regional) to build up capital base subjects you to cgt on sale - the only way you will get your equity out without borrowing.... and cgt erodes the capital you have built up if you have built up any at all.
     
  12. Bran

    Bran Well-Known Member

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    "Get a good job paying good money."

    Joe Hockey.
     
  13. Lacrim

    Lacrim Well-Known Member

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    I agree, buy elsewhere not in Sydney atm but if they want to buy in Syd at a lower price point (than Blacktown), then perhaps look at a house in/around Campbelltown eg Leumeah, Minto etc.

    If they can stretch/want to spend circa $600K, I'd say look around Lalor Park - I like its geographic position next to more expensive Baulkham H, Bella Vista, Kings Langley etc.
     
    Last edited: 3rd Aug, 2016
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  14. hash_investor

    hash_investor Well-Known Member

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    My advice would be to invest in themselves as much as they can.

    Sydney is expensive but presents immense opportunities at the same time. Get ready to work hard and stop whinging. That is the wrong attitude.
     
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  15. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Educate themselves on how money works, or more accuratley how to put it to work.
     
  16. dabbler

    dabbler Well-Known Member

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    For last 30 years (and more actually) with each rise in property, people all started thinking the same sort of things, not affordable, etc etc

    Best thing you can tell anyone, if they live here or elsewhere, is start off with something cheaper, more affordable etc, do not go all out, start low and then move up as time/situation allows.
     
  17. Pixie

    Pixie Active Member

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    Agree with gockie , if you don't plan to move away...blacktown has good amenities, shopping and public transport to city and Macquarie park. I doubt you will be hitting the bars in town every week, so a little sacrafice may get you far
     
  18. Angel

    Angel Well-Known Member

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    They aren't whinging at all.
     
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  19. MoneyMan

    MoneyMan Active Member

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    Thanks for all the great ideas guys!

    We were looking at buying up the central coast due to the property prices (I wanted to go to the gold coast :rolleyes:) but still need a job and the travel to sydney and on the transport app look like its 1.5hr each way! hence the buy and rent place out then look for job in the mean time, but as office workers we have no skills for much of the work up the coast.

    I cant see how someone renting can save any real money to 'eventually' buy a place, unless like Bran quoted Mr hockey "Get a good job paying good money"

    $600K in any area is a far stretch for our expenses, but looks like windsor/ bligh park may be the go as the surrounds are all new house and land for $600K+
     
  20. hammer

    hammer Well-Known Member

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    Without knowing what it is you guys do, it's a safe bet to say that 60k jobs can be found in every part of the country.

    Think of it as a wonderful opportunity. Start applying for jobs now in areas where you can buy comfortably. Whilst I like @Gockie's idea of black town....even 600k is crazy on your wages. That is one entire wage just to pay the loan off. Like, it's doable but the stress is not worth it. If one thing goes wrong...you're cactus. I've seen more than one couple in my circle of friends break up due to the stress....it's horrible.

    There's plenty of places round the country where you can buy a nice place for 300k and work your 60k jobs no worries. Pick a place with Jetstar flights or driving distance to Sydney so you can get home quick if you need.

    You'll be so much freer without that huge debt hanging over your head. If a little one comes along, you'll be able to muddle through no dramas.

    Spend less on your home and more time with your partner. Life is too short.
     
    Last edited: 4th Aug, 2016
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