Quote:
Originally Posted by b0son
You did so at a time when doing that made a significant difference. A 14yo today will never achieve what you did, because house prices as an income multiple are overwhelmingly higher.
You did so at a time when the stars aligned.... falling interest rates, CGT changes which spurred investment like never before, lax lending allowing you to borrow with only equity.
Anyone trying to repeat what early-2000s investors did would have no real prospect of repeating the investment windfall of the last 2 decades. Those conditions no longer exist.
Congrats on your life and investments. But honestly, its a bit like someone saying 'you can win lotto too, you just have to start buying tickets'. Not disputing you made sacrifices to get where you are, but to do what you did TODAY requires more sacrifice than is mathematically possible.
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Actually no. I was deemed a high risk borrower as I was working casually while also going through UNI and as such found it very hard to get a loan.
My punishment for starting early was to pay penalty interest rates. If fact, I was turned away by all the big banks, one manager telling me to come back when I was 23, after I had graduated and after I had accepted a 'permanent' full time job.
I disagree that what I did can't be done today. Rates, while going up are causing prices to go down.
There are more jobs available than ever before. Many paying above average wages and with 'sign on' bonuses.
First home buyers have a whole bunch of perks and incentives to buy a property.
The job situation has also changed. With the giga economy I can do multiple jobs, between my normal jobs from the comfort of my car and can stop and start when and how I please.
None of this was the case when I started.
In Sydney you can buy a studio for low 200k. A 1 br unit for high 200's, a 2br unit for low 300's and larger 3br units are starting to hover at high 400's to low 500's.
And that's Sydney, the most expensive capital in Australia. Prices would be lower everywhere else.
That's now. I'm predicting they will drop another 10% by early to mid next year.
Lets say someone has the ability to earn $80k by putting in the hard yards, that's well and truly a deposit on any of the above properties.
Doing it as a couple? Even better.
Had I been in the position to start now I would have stuck to the exact same methods I did the first time. Make as much as you can, spend as little as possible then when you have a decent amount of deposit of at least 20 or 30% buy something.