We sold our house 2 years ago and decided to rent for a year as we sold for less than planned for and the market was expected to flatten. (Never assume)
We also had to go ahead with the sale due to borrowing money that had to be paid back ASAP. Renting was also the best option for business reasons.
Fast forward 2 years (an extra year renting due to Covid in Victoria) and we are completely locked out with a VERY HOT property market. A rise of approx $200-300k. (We are an outer Suburb with Melbournites moving in)
We had decided to then purchase in cheaper locations 15-20mins away from us and RentVest to get back in to the market, but the rest of Melbourne has decided on this also and after several offers we have had no luck.
I’m sure there’s many of us in a similar situation, with families and kids settled and in local schools. The question is what to do next? So many brick walls.
Any ideas are welcome. Feeling scared and very frustrated.
5 Replies
How far are you willing to move? Moved to Bendigo from Melbourne. Best decision ever.
Sadly I don’t think there is an easy answer. We sold nearly 13 years ago to move interstate (Sunshine Coast). We planned on renting for a few years until we worked out which area we wanted to settle in. I got sick and had to give up my job and with one income and a child just starting secondary school (private) we decided we would wait until he finished school in 2021 and then purchase. Sadly that won’t be happening and it looks like we have been locked out permanently. House prices here are now so ridiculous that even with a full time and part time income I doubt we could afford it. We are now in our early 50’s and it would take us another 5 years to get a 20% deposit together at today’s prices. Hate to think what houses are going to cost in another 5 years and I doubt we could get a mortgage in our mid 50’s and pay it off within 15 years especially if interest rates rise. Unless we come into some money (or win the lotto) we will be renting forever.
This sounds like us, had to sell due to a failed business, had debt and didn’t make much from the sale.
That was 2011, in our 40’s, hubby almost 50, we have 4 kids,
It hurts and is scary as to where we’ll end up not being able to have our own home, and renting in old age,
Our rent is also going up soon $70 a week more, just can’t see a way out.
Our eldest is about to build a home with her boyfriend, which is exciting for them, but I feel a little jealous if I’m honest,
We feel like absolute failures to our kids,
Fingers crossed we have a lotto win.
If you can, buy a house and land package somewhere where it’s starting to boom. Live there a few years and then sell..
We did this and made $200,000 after living there 3 years. We were able to recently purchase a million dollar property thanks to it!! Otherwise never would have been able to afford our dream location.
(Also in Melbourne)
Have you considered an investment property in a more affordable area? Many developers of new estates offer their first stage house and land packages for less than the second third etc. Once most of the house and land packages in the estate have been bought and built the price of the homes go up immediately because the suburb is then becoming established. You can go interest only and rent out the property whilst the price rises and you continue to rent in the area you live in. Claim the interest on tax.
It will secure you a foot in the door whilst you save for your owner occupied home.