For most of this year I have been contemplating buying a house of my own. Not as an investment, but to live in either by myself or with someone else. Originally I was inspired by the brand new apartments that were on sale at Pemulway. Upon investigation it wasn’t hard to realise they were out of my league financially.Then there is always the question of why? Why would I want to buy a house when I have it good (too good) at home with mum and dad?
My thinking is that it is about time I moved out. Dad is going to retire within years and I don’t think it’s fair that he have one or two semi dependants still hanging around. You can talk about being independent while under the parent’s roof as much as you like. The fact is you aren’t really independent until you are out in your own place.
Conversely, if they decide to spend their retirement touring around Australia then they might need someone to look after the house. Unfortunately I don’t see Dad doing that, roughing it was never his go.
So then, why buy? Why not rent? The local financial adviser would definitely recommend renting over buying. When you buy, he’d say, you won’t be able to earn an income from your investment. I listen to a lot of what this financial advisor has to say but some things I believe are too far entrenched in financial returns and not taking into account things such as the feeling of security.
I want to take advantage of the first homeowner’s grant, which takes buying to lease out off the agenda. Plus I still see it as an investment even though I will be living in it. That said, I still need to find something with the right price not only for the property but also for my financial position.
I have a restrictive budget at the moment, which limits my geographical options. But then if my career with the Ambo’s kicks off I’ll probably be moving elsewhere anyway, possibly rurally. Plus the Canada Footy working holiday is still on the radar.
I will buy one day, maybe sometime in the next year or two. Hopefully I won’t fall into the trap of procrastination.
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1 comment:
Great to see you thinking about buying (or renting) Tim. Speaking as someone who has bought a place in the last 2 years, its a very big step and not one that should be jumped into lightly. But I'm sure you wouldn't do that. Remember Adrian? He bought his own place about the same time Jen and I did. Judging from his experiences, its very hard to do on a single income and lead any kind of lifestyle as well. A mortgage broker may tell you otherwise, but remember they are just salesmen in the end. I'd imagine it would be etremely difficult to pay off a unit, keep a car running and eat on less than 50k a year. A decent deposit would help of course. Ahh the joys of living in Sydney!
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