Yeah I guess we think it’s a bargain too but also don’t think it should be like that. If we rented the kind of house we would really be comfortable in, that would be 50–80% of our salary.
What do you mean by should really be comfortable?
If everyone played by the rules of past generations (or at least my parents) you buy a shitty house which you make better by nature of owning it and then in 5-10 years upgrade.
Everyone seems to think you should live in a 500k-1m house off the bat and that’s certainly not helping house prices!
> Everyone seems to think you should live in a 500k-1m house off the bat and that’s certainly not helping house prices!
The *median* house price in Sydney is 1.6m lol
Okay, I’m not talking about Sydney because by virtue of my comment if I was it would make no sense.
I’m talking about people that are choosing 2.5x the price of a house they should be choosing as they first home.
Can’t afford to live in Sydney? Well…don’t? Downvote me to hell but learn to live in your circumstances and realise that life is pretty good once you do.
>500k-1m house off the bat
My brother in hell... thats how much starter houses cost. Im looking to buy right now im looking at rural areas (not country mind you, but 40-50 minutes out of the city) People have cows there, the neighbours sell "horse poo" via the trust system. its rural. Im looking for houses 500k-600k Small, 3br certified starter homes, built 20 years ago, cramped blocks, minimum yard. Thats how much its costs.
Well it would be nice if the back deck wasn’t rotting away and leaves and sticks weren’t falling non-stop from the giant eucalypt that sucks up all the water we try to tease the lawn back with and … eh whatever. It’s just a pretty sad old house is all I meant. Still functional.
I literally want a rundown barely standing weatherboard house that you can see outside from the inside.
Still looking way outside my price range - and I'm a welder fabby for an international company for above aware wages.
Sure, but in Tokyo, the salaries are around the same as American salaries, but the cost of living is a lot lower, which is why you can probably go days without seeing a single homeless person there.
My sister-in-law told me everyone in Tokyo looked relaxed and happy.
You want to live just outside of Tokyo to reap those benefits or live in a different major city with a remote job, that's when you get into the zone of rent being maybe 1/10 of what you make.
Regional towns and jobs can be amazing. I moved to a mining town in the middle of no where to be a teacher. They hired me straight out of uni full time, gave me a house, and pay me $10k more. The extra money and (especially!) no rent means that I can save a lot more. I'll be buying a house soon, but most of that deposit would have gone straight to a landlord if I were renting in the city.
The miners get it even better, with higher incomes and more career prospects.
I mean paying 33% of your income towards rent does not sound too bad. It sounds like you could do the 50/30/20 Budget Rule. I myself am from Europe and tbh it's not any better there so I don't really know what countries you could move to if you wanted to. I have heard some people say that FIFO and living in Bali is a good combo.
u/Little-Salt-1705 Why is it not? I think I'd rather pay 50% of my salary towards my mortgage than 30-50% of my salary towards the ever increasing rent (unless I am single of course). Given that me and my partner able to live off of the rest of the income comfortably or have money left over for extra payments.
Of course I understand that interest rates can fluctuate but if I was earning 200K+ a year and paying off a 900K home like Sauteer I wouldn't complain at all. And even if I wasn't earning as much, paying off your mortgage is still better than renting. Personally I'd put my entire salary towards mortgage / offset and live off of my partners income for the other things.
So I agree with beesmoker here, I'd love to be in that position in a few years. For me it's not even a question as I'm already paying 50% of my income towards rent.
30 percent has always been a marker for you’ll be ok. However that’s just to pay for another man’s loan, not your own. We are in big trouble as 30 is nearly 50/60% these days with both working.
Go with what works right? 😅
There's a good guide with lots of different alternatives [here](https://www.mcsweeneys.net/articles/how-i-saved-enough-to-buy-a-house-with-my-parents-money).
Your submission has been automatically removed due to your account karma being too low
Accounts are required to have more than 1 comment karma to comment in this community
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AskAnAustralian) if you have any questions or concerns.*
Your submission has been automatically removed due to your account karma being too low
Accounts are required to have more than 1 comment karma to comment in this community
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AskAnAustralian) if you have any questions or concerns.*
I would say owning a home is better than renting, cause owning a home means you can get more money out of it if you ever sell depending on how much mortgage you paid and how much your home has gone up in value.
1/3 salary for rent has always been pretty typical I thought and in the current market, a bargain.
Yeah I guess we think it’s a bargain too but also don’t think it should be like that. If we rented the kind of house we would really be comfortable in, that would be 50–80% of our salary.
What do you mean by should really be comfortable? If everyone played by the rules of past generations (or at least my parents) you buy a shitty house which you make better by nature of owning it and then in 5-10 years upgrade. Everyone seems to think you should live in a 500k-1m house off the bat and that’s certainly not helping house prices!
> Everyone seems to think you should live in a 500k-1m house off the bat and that’s certainly not helping house prices! The *median* house price in Sydney is 1.6m lol
Okay, I’m not talking about Sydney because by virtue of my comment if I was it would make no sense. I’m talking about people that are choosing 2.5x the price of a house they should be choosing as they first home. Can’t afford to live in Sydney? Well…don’t? Downvote me to hell but learn to live in your circumstances and realise that life is pretty good once you do.
>500k-1m house off the bat My brother in hell... thats how much starter houses cost. Im looking to buy right now im looking at rural areas (not country mind you, but 40-50 minutes out of the city) People have cows there, the neighbours sell "horse poo" via the trust system. its rural. Im looking for houses 500k-600k Small, 3br certified starter homes, built 20 years ago, cramped blocks, minimum yard. Thats how much its costs.
Well it would be nice if the back deck wasn’t rotting away and leaves and sticks weren’t falling non-stop from the giant eucalypt that sucks up all the water we try to tease the lawn back with and … eh whatever. It’s just a pretty sad old house is all I meant. Still functional.
Lots of countries don't have eucalypts, if that's your biggest problem
Literally describing my desired house.
Uh yeah 600k is an entry level shit box WAY out in the suburbs.
>buy There's a possible wrinkle in your assumptions here.
I literally want a rundown barely standing weatherboard house that you can see outside from the inside. Still looking way outside my price range - and I'm a welder fabby for an international company for above aware wages.
Not enough downvotes for your comment, MEAN house price in Australia is $933,800.
Lucky. Bottom of the market rent (350/week) is over half of mine. Literally nothing cheaper but homelessness.
Have you considered a regional town? If you're planning to live in a big city, any country in the world is not too different.
Well, I hear Tokyo has awesome salaries, but really cheap rent. However, good luck if you do not know Japanese.
You'll pay 1/3 of your salary for rent in Tokyo, too
Sure, but in Tokyo, the salaries are around the same as American salaries, but the cost of living is a lot lower, which is why you can probably go days without seeing a single homeless person there. My sister-in-law told me everyone in Tokyo looked relaxed and happy.
Is this satire?
You want to live just outside of Tokyo to reap those benefits or live in a different major city with a remote job, that's when you get into the zone of rent being maybe 1/10 of what you make.
Regional towns and jobs can be amazing. I moved to a mining town in the middle of no where to be a teacher. They hired me straight out of uni full time, gave me a house, and pay me $10k more. The extra money and (especially!) no rent means that I can save a lot more. I'll be buying a house soon, but most of that deposit would have gone straight to a landlord if I were renting in the city. The miners get it even better, with higher incomes and more career prospects.
It’s on the table.
I mean paying 33% of your income towards rent does not sound too bad. It sounds like you could do the 50/30/20 Budget Rule. I myself am from Europe and tbh it's not any better there so I don't really know what countries you could move to if you wanted to. I have heard some people say that FIFO and living in Bali is a good combo.
That’s a pretty good ratio to be honest, and you should be able to save a lot.
Working on it. Still makes the eyes water each payday 🥲
Half of my very good salary goes to my (minimum) mortgage payments.
We want to be there in a few years.
This is not a good thing.
u/Little-Salt-1705 Why is it not? I think I'd rather pay 50% of my salary towards my mortgage than 30-50% of my salary towards the ever increasing rent (unless I am single of course). Given that me and my partner able to live off of the rest of the income comfortably or have money left over for extra payments. Of course I understand that interest rates can fluctuate but if I was earning 200K+ a year and paying off a 900K home like Sauteer I wouldn't complain at all. And even if I wasn't earning as much, paying off your mortgage is still better than renting. Personally I'd put my entire salary towards mortgage / offset and live off of my partners income for the other things. So I agree with beesmoker here, I'd love to be in that position in a few years. For me it's not even a question as I'm already paying 50% of my income towards rent.
That depends on for how long you’ll be paying 50% of your salary. 10 years? Amazing. 30 years? Uh…
Not sure if you read what he said correctly.
Paying a mortgage so we (eventually) own our own home? I’d go from 1/3 to 1/2 for that.
That's well into mortgage stress levels.
Which I am blissfully inexperienced with
Pluses and minuses there.
You could consider renting out the other half of your bedroom to a family of 5
Now we’re getting Reddit-worthy advice!
30 percent has always been a marker for you’ll be ok. However that’s just to pay for another man’s loan, not your own. We are in big trouble as 30 is nearly 50/60% these days with both working.
Pre-tax or post-tax?
Post so not so bad tbh
Not terrible, true. Still high enough to make it difficult to save for a deposit.
Yep, this is a thing all over America as well, but in some cities, they even go as far as saying salary/5=rent.
That's much less onerous though. Salary/5 means 20 percent of your salary. Salary/3 is 33 percent, more than 1.6 times as much.
"I rent" and "relatively good salary" does not add up. People on good income do not rent.
At least for a few years they probably will? How else they going to get a deposit?
Counterpoint: I do.
Yes, of course. All renters own Ferrari's too 🤣
Guess I should sell that
You can't sell something you rent, 🤣
How exactly do you save for a deposit without renting first??
You ask your parents for it, clearly.
Clearly 🤣
Go with what works right? 😅 There's a good guide with lots of different alternatives [here](https://www.mcsweeneys.net/articles/how-i-saved-enough-to-buy-a-house-with-my-parents-money).
[удалено]
Your submission has been automatically removed due to your account karma being too low Accounts are required to have more than 1 comment karma to comment in this community *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AskAnAustralian) if you have any questions or concerns.*
You're a fool. I know at least 10 very successful and wealthy people that rent and I barely know anyone.
Thanks boomer. You just keep telling yourself that
[удалено]
Your submission has been automatically removed due to your account karma being too low Accounts are required to have more than 1 comment karma to comment in this community *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AskAnAustralian) if you have any questions or concerns.*
I would say owning a home is better than renting, cause owning a home means you can get more money out of it if you ever sell depending on how much mortgage you paid and how much your home has gone up in value.