Extra super too. But if you get into a property early, in a reasonable position, even if you leave it and do nothing for the next 30 years, by the time you retire you’ll have somewhere to live, rent free.
It only costs you money for the first five or so years if that. After that it pays for itself.
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I think one thing that’s present now is that your own home isn’t included in the assets test for the pension.
That is another thing in favour of investing in your own place of residence as opposed to renting. But affordablity is terrible.
It’s all very depressing for working class Aussies in that regard.
People want to buy their dream home. If you can’t afford it, forget about it and buy something else. Just buy something in a good position.
I’m living in my sons unit in Surfers Paradise at the moment while I’m having a house built.
He bought it to live in but now lives interstate. He bought it about 3 years ago for $250k.
In a high rise. Two pools, tennis court, BBQ area. Tropical gardens, underground parking, secure block. Right on the tram line.
He would probably get $350k now, so still affordable for most working people. It’s only one bedroom, but 95 sqr metres, it’s huge. Body Corp about $60 PW. You can get 2 bed in the block for $500k. 160 sqr meters.
He rents where he is interstate. He will probably buy there in the future. But he won’t sell the unit. He might borrow against it. Why sell? It more than pays for itself, he can keep it for the next 30 years with no cost to him.
He will own it outright by then.
People go on about negative gearing, he doesn’t need negative gearing.
People complain because they can’t get a house worth $1.5m. Lower your expectations.
Rent where you want to live. Buy where you can afford.
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Honestly getting a 2br apartment, 95square meter with 3kpa OC and all that amenity for 250k is pretty much impossible anywhere else in Australia, let alone a 100k appreciation in value in three years time.
Apartments arent a great value proposition in the overwhelming majority of locations unless you intend to keep it until you’re legit happy to keep it until retirement, if the building doesn’t collapse by then.
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Absolutely, not buying it for capital gain. Buying it for something to borrow against. And body Corp can be prohibitive in many buildings. I’ve seen some at $260 per week.
You need a building that’s well run and doesn’t have managers who have bought management rights. And lots of owner residents who care about the costs.
This building is a bit unique, management rights were never sold I believe, the body Corp always employed managers. They now employ a caretaker, and then general labourers Cleaners etc. probably about 3-4 people are around all the time. Vacuuming, gardening, minor repairs, pools etc
They have very good long term plans in regard to concrete cancer, balcony replacement , fire doors, security etc, so you can see your body Corp at work.
And the thing is, retiring in Surfers Paradise is not necessarily a bad thing especially if you have arthritis hehe!
I think I just get annoyed when I hear people say they can’t afford to buy. Most working people can afford to buy, just not where they want to live.
But someone else always wants to live, where they can afford to buy.
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I have heard of SuperWoman, but thought there was only one of her.
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the issue in sydney/melb is you have to cop a 2+ hour commute on most single incomes.
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But you can’t exceed putting in $25k in a year or our lovely Tory govt (who wants everyone to fund their own retirement, and who also love free enterprise, and who also hate govt intervention, and who also hate taxes) will take money out of your super fund and slug you extra tax.
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Yes, but my point is, you don’t have to live where you buy.
Not at all. Coolangatta is the most popular destination for FIFO workers to live in off the mines in the country.
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a lot of people need to (for at least 6 months), to get the concessions that will allow them to buy. melb and sydney are terrible.
That’s interesting. It’s a nice spot.
I know when I worked in social security Back in the 1980’s I interviewed a guy who was stood down from working on an oil rig off Barry Beach due to a strike in an associated industry, and he lived at Currumbin with his wife and kids.
I was very confused at the time. I’d never heard of people working in one state and living in another.
Apart from obviously Tweed Coolangatta and Albury Wodonga
They don’t have to buy in Melbourne and Sydney. Australia is a big place.
big leap of faith to buy somewhere you can’t see in person
Won’t be long.
There are some reasonable commercial property deals at all price points too.
I like the idea of them if you get or it has a good tenant. Commercial property tenants end up sticky because the location becomes more important to them.
That and the yield is usually much better.
The downside I think can be if your building falls vacant. It can be hard to fill as new businesses don’t come around as fast as new residents.
Has anyone had some success with commercial property investment?
A few years back my wife was offered a promotion with a decent pay rise to move to Melbourne, thankfully I talked her out of it even I though I would love to live there it just didn’t make financial sense at the time. Now there is talk of her work expanding into QLD and they have asked if she is interested if they win the tender. Can see some healthy debate if it eventuates 
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I’d be keeping it too. We got burnt two years ago by these jerks with an offer in our place.
7.5% deposit, 2 weeks to finalise finance etc
Next minute, oh the funds are tied to the business, it’s a bit complicated can w have an extension?
We give an extension, “oh, we still having trouble, can we do a 5% deposit”
2 hours to go, “the bank declined it”.
■■■■■■■ clowns. We ended up selling 2 weeks later, but for $25k less.
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This is the sort of scenario I’m more familiar with.
Buyers entering into contracts without the proper care.
Of course I’m sympathetic to incompetence from the buyers bank, and I’m sure the same thing could happen with conveyancers.
But much more often it’s buyers who either don’t know or don’t care about the stress they’re putting sellers through, who are often trying to sort out something close to a simultaneous settlement themselves.
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I also maintain that if we were in a room together with the other couple, it would’ve been sorted amicably and we would’ve reached a deal. But you’ve got middle people trying to convey information which can lead to miscommunication and most importantly lost time.
Should’ve rented it in hindsight, we’d be 200k up by now. Meh, you lose some, you lose some more 