Youngsters and their views on property?

Disagree on both points.
Care to mention why you think so?

 

Hehe. I had a work colleague who seemed older than me, was renting a house in Lane Cove (one of Sydney's better suburbs). They were double professional income (he was an analyst, she a teacher), 2, maybe 3 kids, both working for several years but did not have the money for a home deposit. I talked to him about that and he said they'll do that when he gets a pay rise/becomes a manager... seriously?

They should have been able to do it on what they were making already. But Lane Cove is obviously not first home buyer territory (unless its a unit but its not really suited for a family).... so yes, they would have to sacrifice something. Anyway, at the same time I had 1 IP and the home (both of which have doubled (or done better than that) in value since 2008. And my house is now close to paid off and I've got a portfolio I'm really quite happy with. Not sure about my ex-colleague though.... he did get a promotion. Wonder if I should ask....?

 

....WTF?

 

Yeah... nobody's bitter here. Lots of positive attitudes is what I see. Maybe it was posted in the wrong thread?

 

Is his wife called Jessica?
http://www.news.com.au/finance/mone...of-living-survey/story-e6frfmcr-1227041183279

Jessica and her family are a prime example of a family who’s seemingly on really good money but find themselves in the same situation as many people on much lower incomes.

“My husband and I earn close to nearly $245,000 a year and really struggle with the cost of living raising our three and two-year-olds,” she said. “The reality is we will never be able to break the cost of living cycle to buy our own house. Before you roll your eyes, we don’t live a life of luxury.”

Jessica said when she took parental leave to have her second child, she wasn’t entitled to any leave entitlements because she had been on a contract. As a result, her family took out loans to maintain their standard of living which saw their personal and credit debt spiral to almost $55,000.

For Jessica, her family’s biggest expense is childcare. Image: Thinkstock.Source:Supplied

Out of the $12,500 Jessica and her husband get after tax every month, $2500 automatically go towards loan repayments.

The biggest single cost to Jessica every month is full time childcare for her two children. In the inner city Sydney suburb of Pyrmont, childcare is setting her back $5000 a month, which is about standard for the area. Rent is another $2500 a month for a two-bedroom apartment.

After the cost of rent, loan repayments and childcare, the family of four is left with $2500 a month to cover everything else. Their regular expenses includes $150 on phones, $600 in fuel and car expenses, and between $320 and $700 on groceries, which leaves pretty much nothing from that initial $12,500.

“I don’t think it matters how much you have, everyone has bills to pay and no one can afford them,” she said. “We haven’t been on a holiday in years and any extra money goes into the offset account from our personal loan, which we have to dip into when a birthday comes up.

“The reality is if we save half our monthly disposable cash, it will be 40 years until we can afford a 5 per cent deposit to buy a house at the average Sydney house price.

“I don’t think the cost of living in Australia is going to come down. There’s this feeling in Australia of impossible growth and that everything is going to double or triple. I think a lot of that comes down to consumer ignorance. Companies incrementally raise prices and people continue to put the same things in their baskets.”

 

Omg... just... idiots.

 

I liked the first one....Sydney is really expensive etc...but I'm going to Hawaii on vacation.

 

Once you go first, you can never fly economy again - that just compounds the loss.

 

Hence why I will never fly first.

I can put up with slight discomfort for 24 hours for 10k in my pocket

 

I'd only fly first or business if someone else pays...

 

That's how they get you.
Now I don't fly

 

One of the earliest response to "these" type of examples i heard and continue to hear and that i use is

So if this guy gets this 10k or so payrise. He goes and gets a bigger house or sells the car and gets a better car on finance thus being in the same cycle and same position. Waiting for his next payrise

Rinse and repeat

 

Does childcare in sydney really cost 5k per month for two?

 

Re: Flying, you can always try the "poor me"... I had done a few flights, was checking into my 3rd flight within 24 hours. Guy from Scoot at the checkin desk at Singapore asks me how I was. I very calmly said I hope to have a good flight as it would be my 3rd within 24 hours. So... he said, i'll help you out or something like that... he upgraded me to a yellow seat, (has a bit of extra room), no extra charge! It was still economy though. So finally when we were all on the plane, they have an announcement. "Anybody wanting to upgrade to a yellow seat, let us know and we can do that for a fee".
So anyway, I saw that you could get 4 seats in a row... I ask about that. The flight attendant actually gave it to me. No charge. They said since you are in a yellow seat, there is no charge to change....this is for Singapore to Sydney too, not just some short 2 hour flight. And since i'm an average height female, 4 seats effectively becomes a bed. What a win!

So, moral of the story, dont be demanding or expect to be upgraded necessarily, but a pity story can help.... which reminds me I have a huge adventure starting tomorrow!! This is from tomorrow and will be completed in less than 3 weeks: Sydney-Bali, Bali-Singapore, Singapore-Penang, Penang-Singapore, Singapore-Phuket, Phuket-KL, KL- Melbourne, Melbourne-Sydney. All on budget airlines... with 7kg carry on luggage only.... because I'm a cheapskate! (If I was travelling with somebody undoubtably I'd share a luggage allowance with them. But i'm not, so...)

 

Somebody I know had childcare that was 3k per month I think. But that would have been 7-10 years ago. Later on they ended up getting nannies. Just 2 kids btw. But she is the CEO of a company so they would be doing well enough. Still very normal people!

 

With payrises though, a lot of the extra goes to taxes. So the extra take home is much less than the payrise. Unless of course, you do tax effective things like property investing.
So without using tax effective strategies you don't end up with that much more $$ than you would think you should get from a jump in pay. Which is why you should invest, or, in other words "pay yourself" a percentage of your income as soon as you earn a single dollar.

 

After 12 months saving straight out of school (working in exploration in remote Aus) I bought and IP in Adelaide aged 18. Friends laughed / thought my parents paid for it.
Luckily was able to hold onto the house through uni as yield was good and able to work exploration during uni breaks plus saved up a buffer prior to going to uni .
Finished uni, landed a good Grad job purchased a devey potential place (with good numbers) for around 800k with my then GF now wife. friends laughed and said I was crazy, father in law even tried to talk us out of it and say he forbid it.
now 26 in the fortunate position that work pay for our housing. madly saving to buy another or kick of the development to release some capital so we can go again.
I don’t understand the mentality of my friends who say the couldn’t sleep at night being in over 1millions dollars debt at 25 we are crazy what happens if you loose your job or interest rates go up or prices fall or the sky falls down???
Still able to travel and do all that other fun stuff too, albeit not as often and lavish as friends.
Cheers

 

If we had our kid in child care for 5 days, it will be 3,300 for one. And that is before the rise in fees for 2016. And there are more expensive ones when we were looking for one.

 

I think anyone who has their kids in childcare for 5 days a week has missed the whole point of having kids, and need a smack in the head..

Get rid of the fabulous job that requires them to work so much they cannot spend time with family, have to commute a zillion hours/and or pay a king's ransom for a home.

Take a pay cut and get the life back in balance.

They are only little for a very short time.