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What's a reasonable time frame in which to save a deposit for a property?
I'm a recent uni graduate currently have a small part time job. But with the motivation I feel it shouldn't be too hard to find a full time job
I live in Melbourne and have set my sights on a couple of mid to upper class suburbs where a small unit might cost $500k - 1m.
You see articles saying it takes on average over 10 years to save for a deposit here but I think that's greatly overestimating it
By my rudimentary calculations I should be able to save up within 2 years.
I live at home and my only major expense is my car with a few smaller ones like gym and eating out a few times a week. A 10% deposit would be $50-100k and a $20/hour job full time would be roughly $35k a year after tax. I calculate my current expenses currently be no more than $7200 (including repaying the loan for my car). Add in miscellaneous expenses and, as long as I was prudent I could save at least $50k within 2 years.
Who's done this sort of thing and knows what its like? Am I being too optimistic?
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brisfag here
In my mind you're better off holding off on the upper class areas to begin with. Instead of buying an apartment, opt for land/house. If you can find an area which you think will develop well over the next 10-20 years and has reasonably priced land available, go for that. No need to spend 500k - aim for something conservatively priced and modest. You'll be able to pay a smaller mortgage off faster this way and have some actual land to show for it at the end of the day. You can choose to sell it later if the price increases (which it probably will), or rent it out and take out a loan on another property. Rinse and repeat and you're laffin. You could end up with several properties generating a steady stream of income.
You can still get that nice apartment later on in life when you can really afford it. No need to live outside your means when you're trying to build wealth.
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>>1826462
Good advice, thanks. The size of the mortgage repayments are something to consider. Why would you go for house/land over units?
One of the areas I've got my eyes on is Docklands which I think is bound to increase in value due to its waterfront location and proximity to the CBD (a 2 bedroom currently has a median price of $600k).
But I'm certainly no real estate expert and I'll research it a lot more
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>>1826530
Units also have massive strata fees anything with elevators etc your looking at thousands per quarter. Throw in a pool etc forget about it. If its costing you an extra $10,000 a year in fees when first starting that adds up fast in interest and time saved on loans.
Melbourne apartments are in oversupply at the moment, so there will be a lull while prices stabalize a bit. They will one day get up their with Sydney its a wonderful place to live. But if you where to buy a shitty townhouse or house 15 minutes from Melbournes centre you will be looking at massive growth in years to come. Way outstriping what unit growth will have.
Sydney property developer here who's made he's fortune, if threads still alive in morning ask any questions.
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>>1826447
I saved almost exactly $50k 2 years out of college working full time jobs while living with my parents so it's possible. I don't know the lending standards in Australia but that seems like a very small deposit on a house that expensive. Personally, I'm at the $60k mark at almost year 3 (lost a bit in the markets and moved out to an expensive city) and I'm looking at $300k houses and waiting for rates to rise so I can get one for $250k.
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