I love this country but it makes me feel scared for my future feeling like I’ll never be able to own property here :( at uni rn and worry about it all the time
You can buy w a friend these days and just rent out rooms to people for 6yrs! I know someone who put 2bunk beds into one room @$250 each pw! 4Braxilian female friends took it for 1yr!!! 😮IF you don't find a man friend thing! That's the reality now! It's fked!
Yeh, it hurts. You’re not alone. Prices just can’t go higher…so how on earth is there ever going to be an incentive to build. Home need to be 600k to be affordable to the average person. Gone are those days.
For the majority of people who don’t come from a privileged background. With better education, better life chances etc. Who are stuck in poorly equipped rentals, propping up the investors market who gloat how they are giving the poor a place to live. Are spending upwards of 60% of their salary on rent. For those fortunate enough to buy in the lower end market ie under $500,000 have likely bought a dog box that is way over valued and in need of repairs. So you can’t win either way unless you are an investor who has lifelong income and equity. Or earning over $200,000 yearly
The 28% mortgage repayment rule seems really low. By the time the person can save up until they have the right level of contribution and not having to borrow as much to meet the 28% repayment rule, the same house might cost more then. I’d imagine it’s probably better to take some risk whilst being young would be worthwhile.
The 28% repayment rule might work when the interest rate was much lower. It doesn't work with the current interest rate. Imagine the couple takes home 10k a month and pays 2.8k for the mortgage, which means they borrow 450k from the bank. Let's assume they put down a 20% deposit to avoid paying LMI, which means they can only buy a house under 562k. Nowadays, you can't even buy a relatively new 3x2 in Perth with 562k. Overall, It's just a theory. Most people I know paid more than 28% just to get a house when they still can.
It’s not realistic. Also the percentage will change as your career progresses and interest rates change. We bought our house the payment was 35% our income, dropped to 18% with pay increases and my wife getting a better job. Then with interest rate rises we’re back at around 30%. Also if you are struggling for a period (eg kids and part time working) you might consider it affordable to briefly go to 35-40%, or go to interest only to keep it in the low 30s.
30% for Mortgage repayments is a joke these days. I just bought my second house and I'm spending 60% of my fortnightly wage JUST on Mortgage repayments. Things are different now, and that 30% for "play money" needs to go down a few pegs on the priority list if you want to own a home independently
Tbh I think the theory you applied on mortgage percentage doesnt work after house pricing boom. I made more than Chris, have more than 20% deposit and my mortgage repayment still over 28%. We need to accept the fact these price has been raisied for so much, these percentage need to be updated and this is exactly why young generation have no hope of getting a house without any help.
@@Carlos1116 it’s definitely not perfect, but just a good framework as a starting point. 30% of your salary looks very different for someone earning $200k vs $100k for example
The waiting time for student visas is still up to 6 months, which is incredibly frustrating. Finding a job is difficult, and housing is even harder to secure. I really hope the system prioritizes citizens PR visa soon. Those on COVID-extended working or student visas should just be sent back to their own countries. There's simply no housing available. It’s unacceptable that visa approvals are delayed, leaving applicants waiting for up to 6 months without a response. If they won’t process visas, they should at least restrict work so the situation doesn’t worsen. Meanwhile, those working are only contributing to an increasingly strained environment. Immigration officers, please process these cases as quickly as possible.
If only I could kick my $300 per week avocado toast addiction I'll take ten years off my goal of getting a deposit. But by then house prices would have doubled so I'll miss my goal again. I'm out of addictions to kick. Maybe if the government kicked their immigration addiction I could do it.
Immigration is only one part of the parcel, lack of apprentices (shit wages), negative gearing, housing treated as an investment, low rise house zoning flooding our cities and towns all add to the problem.
@@gtvwill I agree. It's been a problem for well over a decade. But ever since one million immigrants arrived over the past two years we have had tent cities arrive and an epidemic of homelessness.
@@SteveShearn Immigration is not the problem. That is an excuse used by certain politicians. The root cause of the problem is Corruption. Those who have money, they shape the systen to keep it, and expand it. It is even worse in London/UK. If you change the politicians, nothing changes. If you change the system, then everything changes. We can learn the mistakes and lessons from other nations, and we should do that.
I checked and median salary is about 30k lower than average at $65k. 98k was average so there's a small percentage of incredibly high earning individuals out there.
@nafslee yes, they are mostly politicians. The state of the highest average salary is not NSW or Victoria, but Canberra. The current inflation is also mostly caused by their salary increases. Yet, they blame it on international students because they don't have the right to vote. Politicians wouldn't care if universities go bankrupt either. And... 95% of all political parties- coalition, Labor and Greens are all property investors of multiple properties per person. Do you still think they will help lower the price of Australian properties?
For couples it is feasible to live completely off 1 wage and save 100% of the other. Young Australians largely do not understand the concept of delayed pleasure. If you were trying to save for a house, why you would spend 30% of your take home income on wants is beyond me.
In what world can you live off 1 standard wage unless that wage is significantly above national standard, especially if you have children ? Unless your a childless couple and plan to have no kids.
@@Whyunounderstand by standard do you mean the median person, working a full time job (close to, if not more than 100k)? On the proviso you haven't started a family with no savings or equity in a home, yes this is completely possible. I have many friends in their early 30's who are all doing this - in Melbourne.
Yes let's continue to gaslight the public into thinking they should save more cut more...maybe educate themselves for free through university like their parents...oh You see what I mean like let's get with the program we are sleep walking into a disaster and the only ones who win are the banks
Me and my partner have a rental each. We live with our parents so we can get rent money. Our combined income is 330k. It's very possible, we live frugally, my sneakers have holes but I choose not to buy new shoes until they break. It depends on how much you want to sacrifice or how much something means to you.
@jamesf1935 focussing on who had it easier does not help anyone. I'm just stating that it is still possible to buy a home and pay it off in Australia. Part of the problem is people think it's impossible so don't even bother trying. If you started intentionally saving from a young age (say 20) there is no reason why you couldn't have a healthy deposit 10 years later. This might mean driving a 20 year old car, not blowing your weeks pay on a Saturday night and delay moving out a year or two if you have the option.
You'd have a mortgage of around 950,000 then at current interest rates. To be making enough to afford that, For a dual income household you'd be looking around $280,000 a year. So, congratulations, you're doing better than 75% of Australians.
End negative gearing, regulate airbnbs, close the loopholes, raise apprentice wages, regulate building companies more (less shonky builds please, so many old ass cowboys who cut corners like its still the 1950s or some crap).
If you end negative gearing, without having other incentives for investors. You will have an even worse rental crisis on your hands. Australia is heavily reliant on the private sector for the supply of rental properties. The government simply cannot and will not be able to build enough houses to keep up with demand.
That is right. Smart people know that rent-vesting using negative gearing is the only route that normal people with median income have to ever owning a house in Australia now. Normal people including beginner investors and rent-vestors who want to improve their lives for the better are the only ones taking advantage of negative gearing. Really successful investors owning more than 3 investment properties are not negatively geared anyway. Slashing negative gearing will only make beginner investors and rent-vestors sell. Then, the property prices will maybe drop only a little bit less than 5 per cent until successful investors rush in and grab these properties on sale. Then, property prices will rise again and rents will double. In the end, the final outcome is the rich (successful investors) will get richer, the poor (normal people with median income) will get poorer. Those cannot afford a property now will never be able to own a home forever and ever. You may not believe me, but know that you can only get ahead in life once you grasp the necessary knowledge and plan ahead.
Yep millions are putting off Childen well into their late 30s it's becomes very Difficult to conceive at that age too, so many could be in a position they can now have kids but can't. Sad
From $37K to $65K that's the minimum range of profit return every month I think it's not a bad one for me, now I have enough to pay bills and take care of my family.
YES!!! That's exactly her name (Lucille Friedman) so many people have recommended highly about her and am just starting with her 😊from Brisbane Australia 🇦🇺
Venturing into crypto as a newbie was very difficult due to lack of experience which resulted in loosing funds......... But Lucille Friedman, restored hope shes a good woman
In our economy we are not one, contrary to Nat'l Anthem. There is also wealth for toil, that describes the private sector. The govt sector(excl military) makes wealth from somebody elses toil, yours! The gearing in av yearly income is 1:1.60 against you/us. We are disrespected and economically enslaved revenue producers. They are (by average comparison) wealthy revenue consumers, who ate heavily heavily over represented in rental property ownership. There is 2.5 million of them and 12.5million of us, yet their buying power is vastly superior and dont forget they are revenue consumers at a most alarming & offensive rate by role/position by global parity measure. Then there is their entitlements, placing us at a greater than 50% disadvantage. Can you figure out what must happen so we can be one & rejoice?? We are funding our own economic enslavement! Ditch the Commonwealth and bring equilibrium back into this continent!
Its not just this. There are so many more systemic issues he mentioned that need to be fixed, like negative gearing, wage growth, overseas investors and supply. It's really not as simple as "its all the migrants fault"...
Step 1: Find a partner
Step 1: fund rich parents
Step 1: While young, single and employed, live frugally in a share house and bank as much as possible.
Step 1 get out of Australia
My butthole is ready
Step 2: Move to Perth
I love this country but it makes me feel scared for my future feeling like I’ll never be able to own property here :( at uni rn and worry about it all the time
Same for me 10 years ago
You can buy w a friend these days and just rent out rooms to people for 6yrs! I know someone who put 2bunk beds into one room @$250 each pw! 4Braxilian female friends took it for 1yr!!! 😮IF you don't find a man friend thing! That's the reality now! It's fked!
Yeh, it hurts. You’re not alone. Prices just can’t go higher…so how on earth is there ever going to be an incentive to build. Home need to be 600k to be affordable to the average person. Gone are those days.
For the majority of people who don’t come from a privileged background. With better education, better life chances etc. Who are stuck in poorly equipped rentals, propping up the investors market who gloat how they are giving the poor a place to live. Are spending upwards of 60% of their salary on rent.
For those fortunate enough to buy in the lower end market ie under $500,000 have likely bought a dog box that is way over valued and in need of repairs.
So you can’t win either way unless you are an investor who has lifelong income and equity. Or earning over $200,000 yearly
The 28% mortgage repayment rule seems really low. By the time the person can save up until they have the right level of contribution and not having to borrow as much to meet the 28% repayment rule, the same house might cost more then. I’d imagine it’s probably better to take some risk whilst being young would be worthwhile.
The 28% repayment rule might work when the interest rate was much lower. It doesn't work with the current interest rate. Imagine the couple takes home 10k a month and pays 2.8k for the mortgage, which means they borrow 450k from the bank. Let's assume they put down a 20% deposit to avoid paying LMI, which means they can only buy a house under 562k.
Nowadays, you can't even buy a relatively new 3x2 in Perth with 562k.
Overall, It's just a theory. Most people I know paid more than 28% just to get a house when they still can.
Yea dumb indicator
It’s not realistic. Also the percentage will change as your career progresses and interest rates change. We bought our house the payment was 35% our income, dropped to 18% with pay increases and my wife getting a better job. Then with interest rate rises we’re back at around 30%. Also if you are struggling for a period (eg kids and part time working) you might consider it affordable to briefly go to 35-40%, or go to interest only to keep it in the low 30s.
30% for Mortgage repayments is a joke these days. I just bought my second house and I'm spending 60% of my fortnightly wage JUST on Mortgage repayments. Things are different now, and that 30% for "play money" needs to go down a few pegs on the priority list if you want to own a home independently
Its based on gross income not net income,
Saving no longer works. Investing as early as possible is the only way to accumulate enough wealth.
Great so mine is 70% mortgage and so that 20% is needs and 10% would be savings/wants
You fcked up if your debt repayments are 70% of your income
Tbh I think the theory you applied on mortgage percentage doesnt work after house pricing boom.
I made more than Chris, have more than 20% deposit and my mortgage repayment still over 28%.
We need to accept the fact these price has been raisied for so much, these percentage need to be updated and this is exactly why young generation have no hope of getting a house without any help.
@@Carlos1116 it’s definitely not perfect, but just a good framework as a starting point. 30% of your salary looks very different for someone earning $200k vs $100k for example
I agree. It's situational but gives a good perspective on where things stand as we speak.
The waiting time for student visas is still up to 6 months, which is incredibly frustrating. Finding a job is difficult, and housing is even harder to secure. I really hope the system prioritizes citizens PR visa soon. Those on COVID-extended working or student visas should just be sent back to their own countries. There's simply no housing available.
It’s unacceptable that visa approvals are delayed, leaving applicants waiting for up to 6 months without a response. If they won’t process visas, they should at least restrict work so the situation doesn’t worsen. Meanwhile, those working are only contributing to an increasingly strained environment. Immigration officers, please process these cases as quickly as possible.
If only I could kick my $300 per week avocado toast addiction I'll take ten years off my goal of getting a deposit. But by then house prices would have doubled so I'll miss my goal again. I'm out of addictions to kick. Maybe if the government kicked their immigration addiction I could do it.
Immigration is only one part of the parcel, lack of apprentices (shit wages), negative gearing, housing treated as an investment, low rise house zoning flooding our cities and towns all add to the problem.
@@gtvwill I agree. It's been a problem for well over a decade. But ever since one million immigrants arrived over the past two years we have had tent cities arrive and an epidemic of homelessness.
@@SteveShearn Immigration is not the problem. That is an excuse used by certain politicians.
The root cause of the problem is Corruption. Those who have money, they shape the systen to keep it, and expand it. It is even worse in London/UK.
If you change the politicians, nothing changes. If you change the system, then everything changes. We can learn the mistakes and lessons from other nations, and we should do that.
@@gtvwillI speak to many GenZ and literally none of them want to do apprenticeships😂ffs we are screwed!
How does that that Debt to Income ratio example at 6:26 work? The figures seem off.
Median salary $90k??? Not sure about that
Yes, that is average salary, not median.
Ah, so you meant to say mean. You should use the median in future assessment as it is a more accurate representation of Aussie incomes
Yes, too many millionaires and billionaires dragged up the average national salary.
I checked and median salary is about 30k lower than average at $65k. 98k was average so there's a small percentage of incredibly high earning individuals out there.
@nafslee yes, they are mostly politicians. The state of the highest average salary is not NSW or Victoria, but Canberra. The current inflation is also mostly caused by their salary increases. Yet, they blame it on international students because they don't have the right to vote. Politicians wouldn't care if universities go bankrupt either. And... 95% of all political parties- coalition, Labor and Greens are all property investors of multiple properties per person. Do you still think they will help lower the price of Australian properties?
The RAYMOND discount is that a discount of 20% per month OR a one off ?
It's per month mate
For couples it is feasible to live completely off 1 wage and save 100% of the other. Young Australians largely do not understand the concept of delayed pleasure. If you were trying to save for a house, why you would spend 30% of your take home income on wants is beyond me.
In what world can you live off 1 standard wage unless that wage is significantly above national standard, especially if you have children ? Unless your a childless couple and plan to have no kids.
@@Whyunounderstand by standard do you mean the median person, working a full time job (close to, if not more than 100k)?
On the proviso you haven't started a family with no savings or equity in a home, yes this is completely possible. I have many friends in their early 30's who are all doing this - in Melbourne.
Yes let's continue to gaslight the public into thinking they should save more cut more...maybe educate themselves for free through university like their parents...oh
You see what I mean like let's get with the program we are sleep walking into a disaster and the only ones who win are the banks
Me and my partner have a rental each. We live with our parents so we can get rent money. Our combined income is 330k. It's very possible, we live frugally, my sneakers have holes but I choose not to buy new shoes until they break. It depends on how much you want to sacrifice or how much something means to you.
@jamesf1935 focussing on who had it easier does not help anyone. I'm just stating that it is still possible to buy a home and pay it off in Australia. Part of the problem is people think it's impossible so don't even bother trying. If you started intentionally saving from a young age (say 20) there is no reason why you couldn't have a healthy deposit 10 years later. This might mean driving a 20 year old car, not blowing your weeks pay on a Saturday night and delay moving out a year or two if you have the option.
This is a really good video
You should see his penis
“Cell phones”!!! I thought you were Australian.
oh no. I think I overspent on my apartment rental :(
Who spends that little a month 2500 on needs is crazy my mortgage is 6k a month
You'd have a mortgage of around 950,000 then at current interest rates.
To be making enough to afford that, For a dual income household you'd be looking around $280,000 a year. So, congratulations, you're doing better than 75% of Australians.
@sesameseedbar8853 lol, you're not far off. Good work
These rule of thumbs ratios are absolute BS. Why use them
End negative gearing, regulate airbnbs, close the loopholes, raise apprentice wages, regulate building companies more (less shonky builds please, so many old ass cowboys who cut corners like its still the 1950s or some crap).
Just ask the government to give every apprentice a house for free.
If you end negative gearing, without having other incentives for investors. You will have an even worse rental crisis on your hands. Australia is heavily reliant on the private sector for the supply of rental properties. The government simply cannot and will not be able to build enough houses to keep up with demand.
That is right. Smart people know that rent-vesting using negative gearing is the only route that normal people with median income have to ever owning a house in Australia now. Normal people including beginner investors and rent-vestors who want to improve their lives for the better are the only ones taking advantage of negative gearing. Really successful investors owning more than 3 investment properties are not negatively geared anyway. Slashing negative gearing will only make beginner investors and rent-vestors sell. Then, the property prices will maybe drop only a little bit less than 5 per cent until successful investors rush in and grab these properties on sale. Then, property prices will rise again and rents will double. In the end, the final outcome is the rich (successful investors) will get richer, the poor (normal people with median income) will get poorer. Those cannot afford a property now will never be able to own a home forever and ever. You may not believe me, but know that you can only get ahead in life once you grasp the necessary knowledge and plan ahead.
3 million
This why Australia's fertility rate has plunged to 1.5 births per woman - the lowest since records began in 1921
Yep millions are putting off Childen well into their late 30s it's becomes very Difficult to conceive at that age too, so many could be in a position they can now have kids but can't. Sad
From $37K to $65K that's the minimum range of profit return every month I think it's not a bad one for me, now I have enough to pay bills and take care of my family.
How please
As a beginner, it's essential for you to have a mentor to keep you accountable. I'm guided by a widely known crypto consultant
She is Expert Lucille Friedman
YES!!! That's exactly her name (Lucille Friedman) so many people have recommended highly about her and am just starting with her 😊from Brisbane Australia 🇦🇺
Venturing into crypto as a newbie was very difficult due to lack of experience which resulted in loosing funds......... But Lucille Friedman, restored hope shes a good woman
But when you factor in ridiculous strata fees, you end up paying just as much money for an apartment as you would have on a house mortgage
Labour out
Also no kids allow in this calculations
In our economy we are not one, contrary to Nat'l Anthem. There is also wealth for toil, that describes the private sector. The govt sector(excl military) makes wealth from somebody elses toil, yours! The gearing in av yearly income is 1:1.60 against you/us. We are disrespected and economically enslaved revenue producers. They are (by average comparison) wealthy revenue consumers, who ate heavily heavily over represented in rental property ownership. There is 2.5 million of them and 12.5million of us, yet their buying power is vastly superior and dont forget they are revenue consumers at a most alarming & offensive rate by role/position by global parity measure. Then there is their entitlements, placing us at a greater than 50% disadvantage. Can you figure out what must happen so we can be one & rejoice?? We are funding our own economic enslavement! Ditch the Commonwealth and bring equilibrium back into this continent!
I need to hagmax
to be honest, i wish i was unemployed. i hate being harrassed by my co-workers. I'm 27 years old and i used to love being unemployed.
Un employed is better no stress from work
Too many migrants
Its not just this. There are so many more systemic issues he mentioned that need to be fixed, like negative gearing, wage growth, overseas investors and supply. It's really not as simple as "its all the migrants fault"...
@@Zzzoeticanah we can’t fix the supply side of the problem but we can change the demand side which is immigration
Immigration has destroyed the Australian dream.
Bruh, Australia as a nation has been founded by migrants
The whole world faces the same issue right or if not worse, who do you blame now?
Hi im trans btw
we pay to much taxes in australia there 125 taxes what a joke
20% more taxes under labor & green now
Isn't the liberal government the reason we have a housing crisis?
@@TheSavlow no the both shit major parties and labor made it worse
@@coopsnz1 😂
@@TheSavlow 10% carbon tax on truck & ute ' fuel excise 6% higher and council rates up 6% ! add Alcohol excise is 13% higher
@@TheSavlow have you lived in victoria labor suck 15 yrs and runied my state since elected in nsw a yr ago
if taxes were much less it would be easier to save money for more people to own a home ! duties & excise taxes is theft
@@coopsnz1 Exactly mate, the harder you work, the more tax you gonna pay, taxation system is punishing hard working people. What a joke.
@@Carlos1116 it punishing middle class & upper class why it shrinking introducing more socialism bullshit policies
@@Carlos1116 you spend more you tax more too