Killing my SpiritBy FAMILY MAN
True Believer's booming real estate market Home Ownership - isnt that we what all strive for? It makes us feel more secure, more successful, but most of all it would give my family the ability to never, ever have to move when we don't want to. While renting we are at the whim of someone we dont know, arrogant landlords who look at you like scum, - people who have the ability to uproot your family if you look at them the wrong way. My wife and I married last year and she is now expecting our first child. So I want to provide security for my family, a home to bring my kids home to after they are born, memories to cherish in later years. Even the simple things like being able to hang a picture on your wall without asking for permission from some girl at the real estate agency. That's not too much to ask is it? Except that house prices are now around the 275,000 dollar range for a nice 3 bedroom house in Launceston. A house that may have cost $95,000 3 years ago. I've saved $10,000 from my good government job with a nice salary of $34,500 salary over the last 18 months. So lets try to buy that $275,000 house of our dreams? First we need to take into account the stamp duty fees, morgtage insurance (since we dont have the required 20% deposit), Transfer fees, etc for a total of about $9600. The good news is that as first home buyers we get a $4000 stamp duty relief. So thats $5400 in fees. I choose to add the fees to the home loan or else our $10,000 deposit will be eaten up. On a $270,000 loan, monthly repayments are $1900 or $22,800 a year. Thats 66% of our gross salary. How can we possibly afford to buy a house in Tasmania on what many would consider a reasonable salary for the state? What can I do? I can buy a house in the suburbs of Melbourne for $275,000. Should I move my family to Melbourne and chase the higher salaries in the city. I'm told I can make $50,000 easy over there. Is that what you want True Believer? Another family that would have raised their kids in the state moving to Melbourne - or should I just suck it up and keep renting for the rest of my life? What should I do True Believer? Am I the only one in this position with a young family just starting out in life? Somehow I don't think so. Family Man ...
RAPID RESPONSE EMAIL: What do you think? Wednesday, December 1, 2004 |