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Giving up buying a house

Answered 6 months ago

Ok so I don't want to get into our circumstances other than we don't have a large income & we have sacrificed & saved but after seeing a mortgage broker I've lost all hope. So now what? Trying to figure out a financial plan for our future now. Rent & invest all extra money in the stock market & hope for the best? Can anyone offer any suggestions?


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ANSWER
6 months ago
Just wait... Interest rates are at all time lows, and people are spending crazy amounts of money. Prices cannot keep going up like that without a correction.

My bet is in a few months the RBA will raise interest rates (which they will do when they see the unemployment rate staying low because the economy isnt as weak as the media makes out). Once that happens, all the people that have borrowed up to the hilt will come under pressure and there will be more defaults, plus people wont have the ability to service massive loans so they wont be prepared to spend as much - so the pressure will come off house prices and I bet they come down a bit.

We are in a similar position - we have a 3rd kid and have massively outgrown our very small house. We wanted to buy a bigger one but are priced out. We are trying to make do - converted the garage into a 2nd living area for example - and are saving hard while we wait for a price correction.

ANSWER
6 months ago
Always get a second opinion.
And you don’t have to buy a house if you don’t want to.
Have you heard of rentvesting? The idea is, if you can’t afford to buy near where you work, buy somewhere cheaper and rent it out, like somewhere more regional, and try to rent it out. Not without risks of course, but if all else fails at least you have a house somewhere?

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REPLY
6 months ago
Absolutely i want a permanent home for my children. We already brought that line - move regional houses are cheaper well they were before the city people decided to start buying them up & now the trajectory is up, up, up. Thank you for your suggestions though.

REPLY
6 months ago
Also the second opinion advice is a good one. It honestly had never occurred to me I don't know why.

ANSWER
6 months ago
I gave up years ago, there is no hope.

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REPLY
6 months ago
I feel for you & I understand. It's sad reflection on our society today.

ANSWER
6 months ago
Whats your main source of income? Can it be done remotely? I pay a lot of attention to the real estate market around Australia, mostly regionally. If you CAN work online, and are not bound to one city for whatever reason, have you considered moving somewhere more rural? I mean, that lifestyle isn't for everyone even if they can work from home. But if you are willing and able, there are some very cheap houses out there.
They may require some TLC, but if you're not afraid of DIY they could come up really nice.
Personally, I love the idea of that. My husband knows that if I ever win $50k+ on lotto, I'm retraining as an accountant, and uprooting our lives to move rural again.
It's worth considering.
As for the stock market, hold off a little there. You need to wait for the share price to dip low enough to buy in. And be prepared to think of the money as "lost". As in, you should aim to hold on to your shares for as long as possible, and reap the dividends. It's much less volatile than day trading, but you can have a fairly stable return over time. It also helps if something you invested in suddenly skyrockets in price. Who knows, maybe a $1000 investment, could lead to a $1m offer to buy you out.
Crypto currency is risky, IMO. It started up out of nowhere, and given the projected recession and market collapse, it's not a very stable investment. Plus, notice how everyone seems to be getting into it - that means its devaluing. Which means, it'll be harder to sell for a profit.

But, these are just my opinions, and I'm not a financial advisor, nor a stockbroker. I'm just a housewife, really. Take what I say, at your own risk.

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REPLY
6 months ago
Wow theres a lot here. Thank you for taking the time to answer. Well we already moved regional to give our family a better chance at having a home but covid happened & now all the house prices here are increasing. I'm retraining at the moment for a different industry so eventually they'll be more money. Yes I agree about the stockmarket, seems like a risky time to be committing to that. It seems a risky time to be committing to anything at the moment. Perhaps it's no accident we can't buy a house now who knows. We're running out of time, we're not young anymore.... its hard when the odds are stacked against you. Anyway I was just looking for ideas for an alternative future plan because that's what most people's is but what happens when you can't have that? I'm sure i'm not the only person in this country wondering that.

Ps i don't think you give yourself enough credit you're not just a housewife, you sound like a pretty cluey lady, i'm sure you're rocking this life 💟

ANSWER
6 months ago
Maybe put extra into your super? I'd definitely talk to an independent financial advisor.

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REPLY
6 months ago
Thank you

ANSWER
6 months ago
Don't take random opinions!!! Do not ever invest in anything you don't understand, anything uncle Bob swears by at the family bbq or 'hope for the best'.

Talk to a different broker & ask the question of what you need to do to buy a house in the future.

Otherwise talk to a financial advisor about investing that money. They'll do a profile based on your lifestyle, investment amount & goals (early retirement, etc.) and recommend different options & explain them to you. It'll cost but do you want to risk your savings on uneducated advice?

I say this as my DP is in the industry. Almost half his clients are people who jumped in without understanding the risks what they were doing, proper tax structure, got into trouble & come to him looking for help.

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REPLY
6 months ago
Thanks

REPLY
6 months ago
I'm not definitely going to do any of these things just looking for ideas to look into.

ANSWER
6 months ago
I’d give crypto currency a crack with 10k
Iv made about 40k off 1500

Friends of mine have made 230k off about 45k

My hubby has made like 4K off about 500 I think? Not sure about him I know he was pushed he didn’t dump his super in it

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REPLY
6 months ago
LOL this sounds so similar to those 'email Dr Witchdoctor all your credit card details and he will solve all of your problems. My sister did it and her amputated arms grew back overnight!' spiels 😂

REPLY
6 months ago
Lol. Reading it back you’re right. It totally does. Except I’m not directing her anywhere that would benefit me lol.

Op what I’d suggest is dipping your toes in.
Start with 500.
Anything your willing to take a chance on and lose.

Or not. It was just a suggestion to add money onto where your at.
I for one never invested in shares because I couldn’t get my head around it, and crypto was much easier to get and actually fairly sinple.
Good luck op.
Don’t take a random stranger on the nets opinion sure, but might be worth looking into it yourself x

REPLY
6 months ago
Thank you but that all sounds to risky for me. Good luck to you & happy to hear about your financial windfall.