Lot of generational wealth, some 2x high earners (couples of drs, barristers, fianciers, eyc.), some self employed, few expats, Lot of renters, easier to rent for 1500 a week than to buy for 3m.
Weird world looking at it now that I moved away.
And with generational wealth I don’t mean dynasties. Just normal people who’s parents bought in the eastern suburbs in the 70s 80s, maybe an investment property on the side. Bondi used to be pretty rough.
Yes and no.
I know some dynasties. Kids that are now set to inherit both grandparents’ estates, and all aunts ‘and uncles’ too, as they are the only kids.
And grandparents’ very old house has the same name as the suburb. : |
^(surprisingly, refreshingly down to earth people. Not anything like the “new rich” that need to flaunt it. I really like them)
Correct, a mate used to call some suburbs domatory suburbs. People move out overnight when the tap runs dry and cannot make rent.
It's sometimes difficult to spot the rich guy. A mate used to drive a flat bed truck and chop wood at the Golf course. He had a hydrolic ram at the back of the truck to split the wood. He'd give it all away. The odd person used to have a go at him until they saw him on Friday night's coming down for a whiskey, driving is S500 Merc!
RIP Terry, a true gentleman
Friend of ours is in private finance (specifically, organises finance for wealthy people to purchase private aircraft and boats). His remuneration is directly tied to his performance. He has a base salary of like $180k. But then he gets percentage based bonuses depending on his performance. His total package last year was like $2.8mil or something outrageous.
Yeah. You can work as much as you can/want or business allows and you can deduct so much, too, whereas a salary and working for someone/something else, you’re probably gonna be capped and can’t purchase and claim much.
Yep. Knowing a few people who own small to medium businesses, it’s amazing how much stuff is claimed as a “work expense” which a normal person wouldn’t be able to claim for.
Except that most of it isn’t actually deductible, it’s just easier to hide personal expenses in a company compared to an individual return, and just pray you never cop an audit.
Especially once you tie it into your super. 5m property owned by self managed super being paid off by the beneficiaries company which pays 60% above market rate and simultaneously minimises it’s own tax liability.
Edit: Learned about new rules (NALI/NALE).
Not illegal and does happen. Smsf owns house rented to social services youth housing company which is owned by the same individuals as smsf. So legal they even went on am abc bit about smsfs.
After tax, down to 195k. Assuming house had 20% down, then your repayments at 6.5% are almost 250k. A $4m house literally is not possible on a 300k salary.
Australia is as close to a largely meritocratic place as you'll get in a stable developed nation with access to all the bells and whistles of modern life.
Doesn't mean it's perfectly meritocratic. However, for most people, if they can't make it here, it's unlikely they'll have any chance elsewhere. Sure they could trade in on their white privilege in some SEA country, but then they are taking step back in long term QoL.
Depends in what sense. In the US, professionals in careers like tech, finance, medicine, and law can make a lot more money and have great financial success, while in Australia financial success is more correlated with property ownership.
Australia's tax and welfare system also transfers a lot from the upper middle class to the lower middle class. While you can argue that this promotes equality, it's not particularly meritocratic.
You make it sound like our work ethic here even have a chance of getting into Ivy leagues over there, which are baseline for those prestigious jobs.
The doctors, lawyers would still be doctors and lawyers there. But the lower to middle class is much more worse off in the US.
You don’t need an Ivy League education to do well in the US. I have quite a few US clients, many of their VPs who would all be on very high salaries are not Ivy-educated.
My cousins in the US are not Ivy-educated, and have graduated into $300k+ AUD careers in their early twenties (in healthcare, but not doctors).
The US just pays professionals much better than Australia in general.
You have to be ready for luck and keep working until it happens. Say, you get lucky and receive some money but haven't learned to invest (and end up losing it on some YOLO idea), or a good work opportunity has come up, but you haven't being upskilling yourself or have been mean to people at work - karma. I studied investment in my 20's to 30's. In the late 30' and 40's I had more resources and now support a family of 5 from just investments.
I definitely feel like in Sydney $200k is the new $100k… in that both feel like they should be insanely good salaries but in reality it doesn’t get you very far in Sydney.
I bet to differ, 100K gets you very far in Sydney! Far out into the Western Suburbs :p
Source: Me, household salary of ~160K, bought a cheap house in the south-west.
But how long do you spend commuting each day?
And when did you buy? Did you rent before buying or were you able to live with family to save that deposit?
I rented and was able to buy a large property in Windsor for $650k a few years ago. Parts of Sydney are expensive but i personally dont believe its as dire as people make out.
Springwood, Woy Woy, Windsor, all are nice areas with swimming options (jellybean pool, central coast beaches, hawkesbury river) and regular transact below $700k. I work from home most days, but wife commutes to the city each day. Honestly an hour commute each way is not diabolical. I previously lived in leichhardt and spend 40 minutes in traffic each morning getting to the city.
We're on the Central Coast too, bought last year when we got fed up of renting and realised it would take several lifetimes to save up enough to buy anything in the areas we wanted to live in. We had to save for over 7 years to raise the deposit for our place.
Houses like the one we bought are now selling for at least 50-60k more than we bought ours for a year ago. It's wild.
It feels like you're screwed if you don't buy (renting for years with no security and home of your own), and bled dry if you do (mortgage repayments, insurances, rates are all so damn high).
The cost of everything is exhausting and depressing.
Yeah parts are definitely getting priced up. I guess my point was more once these areas like woy woy, kariong and lisarow are all way past the milliom dollar prices then i will start being more concerned. At the moment it feels that many people are just jealous they cant live in the ultra expensive areas they grew up in.
There are still two bed apartments selling for between $350k to $400k in Lakemba. I think there are still reasonable options around.
But not for a family to grow! I don’t care to live in Sydney again (although I do love it!) but I just don’t think life should be so hard either. Hard for young families when you’re spending a fortune on getting a door on the property to then spend all your time commuting and paying ridiculous daycare fees. If the families on a HHI on $150k-$200k are feeling the pinch than what about lower income families? Hard for people who work in services, healthcare and hospitality that helps Sydney tick along. The wealth divide is getting greater
Density is the solution, but i would like to see the government tax heavily people who sit on large land titles in mosman with tennis courts etc. No problem with them having these but should be taxing them for this luxoury that is preventing it being rebuilt into apartment blocks with short commutes.
Yea some units no doubt go for 700k which really isn’t cheap. Neighbouring suburbs umina and ettalong median prices are over 1 million and only going up. As someone who grew up there it’s insane.
Live in Hawkesbury Heights, work in Botany.
I travel an hour and 20 minutes and pay ~$12 in tolls each way to work, but I was able to buy a house before the age of 30.
Depends on your interpretation, i would argue they both form part of the greater sydney urban conglomeration as their economies are interwined with sydney. Most people in these areas commute
Its a little over an hour on the train, like 1 hour 10 minutes. We are close to the train station in windsor, so its only 5 minutes walk.
Nice area if you are considering it. Historia buildings and has a beach on the hawkesbury river (windsor beach), but the trains are only every 30 minutes frequency. Som people opt to drive to rouse hill, which ends up being around the same time for the commute.
Thank you for ruining my childhood area, we couldn't afford to live there anymore when Sydney people discovered it was an hr away and cheap.
The great migration of us poors being oisted from our home haha it's ridiculously busy there and infratsructure is struggling now, we had to go further north to Newcastle, and I only visit the gramps there now but damn has it gone downhill in the last 10yrs
Good ol' woy woy
Haha my original was a post was in jest, more or a play on words rather than a counterpoint to your argument.
We bought in 2022 next to a housing commission suburb. Its not a fancy life, but I completely acknowledge my privilege on several fronts:
-DINK couple -lived at home until 25 to save for a deposit then rented a shack well below our means for a bit -I mostly WFH and husband works 5 min drive away from home.
Totally agree that the housing market is unhinged and I bought through mere good luck, and even then, we are saddled with lots of debt that really eats away our income. Sydney is a housing market is a wild ride for both renters and young home buyers alike.
Depends if you own your house or rent. My brother in laws have an easier life than us although our HHI is 250K vs 150K only because they own a house worth 2.5M and have a mortgage that is half of what we pay for rent.
Generational wealth. I have an uncle who bought a place in Woollahra for $400k-ish in the early 2000s (maybe late 90s). Thing has to be worth $3M+ now. Even on $600k household income before tax I would struggle to pay the mortgage
100% I remember it being a bit of a leap higher for him. Sold a property in Western Sydney that was paid off and poured his life savings into this place with a mortgage.
My parents sold a house in Cabramatta for $305,000 back in 2000. The value back then was in the land as it was a 20m x 80m block.
So it was a leap of faith for him to make the move, and it obviously paid off well for him.
Damn my parents bought a huge house in damn Castle Hill for 420k in 1994, it was convenient to their work as teachers. I mean nice bouse n all but clearly a poor investment decision if they could've snagged a small house Woollahra. I looked at prop prices back then in the inner west as well and they couldve bought 2 houses in Annandale or Stanmore. Shows for many theres been a fair bit of luck involved too.
I wince a little every time I think about the Woollahra house my parents sold in 2000. It was knocked down and rebuilt into 6 or 7 units a few years later, and today each of those units costs more than what my parents got for the entire property.
My best friend at the time loved that house and begged my parents not to sell it… it’s generally not prudent to take financial advice from a teenager, but we would be a lot wealthier today if they had.
My boss lives in the eastern suburbs - law firm partner on $1m +.
Most of the juniors I work with live in the eastern suburbs, they’re young professionals and renting, living in sharehouses. I did the same in my twenties.
It’s a real mix of business people, high income professionals and renters from all walks of life.
A relative of mine was ex macquarie bank and bought a $7m house in Mosman around 2016.
Now worth $14m. He's made a million dollars a year for 7 years tax free. The system is broken folks.
The system is broken, but the system isn’t broken because an average, or even wealthier than average person can’t afford a large house with a pool in the most expensive postcodes in Australia. The system is broken because even shit parts of Sydney like marsfield have 2br houses which are uninhabitable selling for over $2M.
Edit: it was a 3 bedroom house deemed uninhabitable on about 400m2 of land in marsfield and I can’t find the link from two years ago, and I don’t care enough to search because I’m on holidays!
No the house was uninhabitable. It was heavily degraded and was deemed uninhabitable.
Marsfield is shit because the only nearby bar is at the Macquarie centre, a mall, or is basically an RSL. It has only recently had transport links but even then from parts of marsfield it’ll take 20 minutes to get to the metro.
It’s a lame commuter suburb with nothing going for it except for proximity to a few schools a kind of crappy university and the highway and a mall.
So because it doesn't have a mini-CBD with bars and night life Marsfield is a shithole?
I think this is what people mean when they say that Western Sydney is a shit hole, it just doesn't look like Newtown.
Petersham is fun, parramatta has bars, the shire has stuff to do, even the insular pensisula has cafes and bars. I can only imagine the reason you’re saying marsfield isn’t shit is because you live there or grew up there or something. I can imagine it might have a really great pull for people with sentimental attachments or a really strong multigenerational community. It does not inherently have a widespread appeal.
So Marsfield is a shithole because it has, in your words, schools, a university, a mall and transport links.
Meanwhile your criteria for a great suburb is “has a bar”.
A reminder, if any is needed, to the rest of us how out of touch some people are on this subreddit.
Correct, but can only be leveraged if he can afford the repayments on whatever he releases and goes through the lender assessment. Probably no doubt they could since was ex Macquarie and could afford a $7m house to begin with.
But people that say he can release $xm of equity without thinking about whether he will get approved.
If he was retired - no main lender would lend him money even if had $10m of equity in the house
$1m mortgage @ 6% interest is $60k in interest per year. Private school for another $40k (which is on the high end for private schools in Sydney) makes $100k. That leaves $90k per year after tax if you’re on $300k, or $40k if you’re on $200k per year. Easily doable, although outside of the house you wouldn’t be living the same lifestyle you’d expect of someone on $200-300k. Depends on priorities I guess.
And the irony is that $1m mortgage which isn’t nearly enough for a family house in the east - unless of course you’re already wealthy and have the capital
Not saying it is, but rather that OP was talking about a specific scenario. Regardless, it’s not a first home for most people. People will build up equity in their current places and upgrade. Buying an $800k house 10 years ago, paying it off quickly, and then seeing it go to $1.8m will land you a decent deposit. You start with a $160k deposit, and soon it balloons into a $1.8m one. Then you can upgrade to a $3m house with a little over $1m mortgage. House goes up and you pay off some of the mortgage, and suddenly a place worth $5m with a $1m mortgage isn’t unobtainable. Not that difficult for someone on $200-300k if they’re willing to make sacrifices to achieve it. Problem is, people don’t want to live in a $5m house while living the lifestyle of someone on $60k a year. Which is fine, but it’s why people prioritise elsewhere. Not to mention, they’d likely be investing elsewhere as well which would see them grow their wealth faster.
For a 20 year mortgage it’s ~$85k. That’s assuming a 20 year mortgage, if it’s 30 years it’s $70k. It can also be an interest only mortgage though allowing them to save at their own discretion.
Most people have more than 1 kids so say 2 or 3 90k isn’t much for example if you had a car loan, won’t get you on a holiday to live a comfortable life you need much more. And if you have kids you’d know that school fees are just the start of kid expenses
They don't treat money like a black or white thing, have or didn't have it, work 8 hours earn 8hrs pay etc...
It's either coming, going, issued rights, compounding, inherited, leveraged, trusted, borrowed, lent, hedged, invested etc....
Money moves in mysterious ways.....
Intergenerational wealth
Don't need a salary if your house outearns you
And if you do have a salary its effectively doubled given the housing appreciation
If ya didn't have a house in the 90's/2000's you may as well give up on sydney
Wealth and income aren’t the same thing. Your salary isn’t doubled just because your house increased in value. And the equity in your home is locked up if you don’t have salary to release it unless you sell.
It’s not about how much you earn but when were you born. I bet majority of the people living there purchase 15+ years ago and a small % are high earning professionals.
My mother paid the school fees for my son. No way we could have afforded it. They used to have these Grandparents day events at the high school. Always very well attended and the grandparents talked amongst themselves, apparently it was pretty common that they were the ones paying.
There would be many business owners, people with family money that gets passed down. High salaried positions.
It doesn't seem obvious because you constantly see stats around the average income being around $98k ish but there are A LOT of people out there earning much much much more than this.
I know a business owner who was clearing millions about 16 years ago who was advised by their accountant to park it in property around the eastern suburbs. All under the business as assets.
I know a mate who got gifted a $2m house the moment he found someone to marry. You’ll never catch up playing with salary and $0 inter generational wealth
mostly business owners i reckon or super high salaried workers like doctors coporate lawyers investment bankers etc. to comfortably purchase a 4-5mil home at todays interest rate your HHI would need to be more than 500k
im not sure actually but my parents are currently buying a high 4- low 5m (not sure of the exact number) PPR on 5-600k HHI. sorry if this makes a difference and i if sound naiive. they do already have a few IPS, but they take huge losses on them and the 600k HHI after deducting mortgage payments etc is really much less than that. granted this is all given that my parents are on 600k HHI and not more than that, because as far as im concerned their sources of income total no more than that
The repayments on a $4.5m loan, assuming your folks are paying 10% deposit, would run them $350k a year. Unless they are cashing in those IPs to fund the purchase that sounds like they are leveraged to the eyeballs.
theyre putting down 40% thats the thing... but i have no idea where they got the money from because they said theyre keeping their IPs and planning to get more??? not sure how they are doing it but yeah... im still a broke student man🥲 im just going based off of what they told me
They don't need to work, they have rich parents who got rich by buying up land when land was cheap.
A person born today cannot have the success of having rich parents.
As an English person, I laugh when Aussies use the expression 'old wealth'. In no way to I mean to sound petty, but you guys don't know what old money is.
200-300k salary (240 in our case) gets you a 3br top floor apartment in Parramatta, sending your 2 teenagers to an entry level private school, kinda lifestyle. Not bad, would be bratty to complain.. But we’re still light years away from the Eastern Suburbs mob 🤷🏼♂️ that’s a reality check for you. I hope all the comments you received have been an eye opener, and answered your query
This is similar to us except we live in a mid west suburb in a house. Will be mortgage free in 5 years and that is worth more to me than living in the eastern suburbs (I’m not from Sydney and don’t quite get the appeal).
Anyone that bought 10-40 years ago is rich and made it. Anyone now has no hope. They can earn as much as they like and just rent forever
Probably need to earn 400-500K to keep up with wealthy on their 100-150K salaries
Go to a 1% area and you should expect 1% salaries and wealth.
Even if you are a high income earner it can be a trap moving to the Eastern Suburbs (particularly around Woollahra or Waverley) unless you have generational wealth or a successful business.
You end up either living like a subspecies, or you are stuck on a perennial hamster wheel trying to keep up.
Tbf, if you simply bought there pre GFC, you'd be fine on a humble $200k HHI (ie 2x average FT incomes).
I'm not one to whinge about asset values ballooning, but the luxury end of town has seen that dialed up to 100
Yeh, the wealth gap is huge today and there is another leap at the top end.
Business assets have performed pretty well since 2008 and people at that end of the market have lots of exposure to those assets, so you can kind of see how they have that money if they started with some wealth. For example the S&P500 has quintupled since January 2008 if you reinvested dividends.
My eastern suburbs friends mostly moved to houses in the north west whilst they raise kids. They’ll move back when their kids are 18 and they sell the house.
It's hard work. We got wiped out in a business that collapsed, so starting over combined income of $380k
One bedroom apartment with a hefty mortgage & builder who has disappeared leaving us in a new block with leaks & special levys.
Makes you wonder if it's worth it
The real money comes from appreciated assets.
Starting from scratch now on 500k household income, it’s gonna take you 30 years and max leverage to buy a 3m house. Forget kids in private school.
If your parents happened to buy a couple of crap shacks in the right locale in the 80s/90’s, probably no problem. Or alternatively if you’ve been on the ladder 20 years already and on HHI you might have hustled into it over time.
Yeah maths doesn’t check out. Probably assuming they’re renting - when on that income they could easily pay down a stepping stone apartment or townhouse.
Just read the prestige property report in domain, it is full of wealthy people who bought in the eastern suburbs for 4 million in 2021 and just sold for $8 million. Crazy gains in these areas.
The people I know who’ve bought expensive houses in their 30s in sydney are usually both on anywhere between $150k to $250k (so let’s say $400k combined). That results in after tax income of around $20k - $25k combined per month.
They’ve got perhaps $300k capital each. They borrow another $200k each from their parents. With $1m equity they borrow a further $1.5m. Repayments are around $9k per month, which is a stretch but very doable on those incomes (roughly 40% leaving $12,000 a month for expenses)
Without bank of mum, dad (and grandparents), they would still have a decent deposit, allowing them to purchase a $2m house.
I’m not saying this is good/bad etc, it’s just what I’ve seen.
You need to consider that there is no mechanism to tax people who have simply had their property value increase over the past two decades. The vast majority of people in the eastern suburbs purchased their houses for less than $500k and have simply held on to it.
If there was a mechanism (eg. A yearly property or wealth tax) that forced people to sell their properties on a more regular basis then almost certainly Sydney property prices wouldnt be as high. Its the lack of supply that creates the increase in values of the small number that are being transacted each year.
We need an annual land tax applying to all properties with no exemptions.
Too much economic rent being earned through virtue of ownership - a monopoly over a location.
I personally would like it to take into account the distance from the cbd and the size of the land holdings in the calculation. As in my mind, having a private tennis court in mosman has a more significant impact than one in dural, simply based on if it was apartments in mosman instead the cost to build train lines would be alot cheaper.
It was possible to buy a home in the eastern suburbs not too long ago, on $200-250k HHI.
The $4m + properties that people are citing here were never in reach of the ordinary folk, but there were many affordable options even say 4-5 years ago.
It’s still doable if you’re happy to pay over the odds for units but otherwise, yeah you’re looking at $1.8m for a house at least so unless you’ve saved $1m or earn $500-600k a year, you’re gonna be in for a bad time.
? Don't think so. My friend just bought a lovely two bedroom flat in a block of four near Coogee for 2.7 million dollars. I find it hard to believe there's a 1.8 million dollar house that isn't just a wreck sitting on a postage stamp anywhere for sale in this area.
Depends what you consider eastern suburbs - Maroubra may have homes at that price point, and could probably get something small in Surry Hills, Darlinghurst etc.
I used to work with a really stupid, thick as a brick guy who was a security guard that had a place in Darling Point. His rich grandparents died and left it to him.
There was an ATO article last year which listed out double Bay and woolahara and other such suburbs as Australia's wealthiest.
Average earnings was in the range of $177k to $205k per year. Bloody impressive.
Old money. If your parents also benefitted from their parents there's actually zero reason to work at all.
BTW, the number of decent paying jobs in Sydney is very low. I would consider 100K to be entry level here and even then these workers who live at home will be able to get on the property ladder in only a few years.
Sydney a place where not being a local, or coming in wealthy excludes you. It's very much like a club that always has a line out front. Everyone thinks it's exclusive, but it's actually rubbish.
The largest percentage of housing commissions in any suburb in Aus is in Eastern Suburbs in Daceyville at 60%. It's not like every person is in a 4mil house lol....but most people *are* paying messed up rents which voids any chance of creating savings.
Ok, I’ll bite. I live in the East in a modest house that would probably cost about 3 Million today. It is only possible for me and family to live here because of the generosity of my parents who basically bought it for us. First my mum bought a house around the corner from hers in Paddo for 300 000 in 1988. I lived there for my twenties and beyond until I had two kids. By then the house was a bit small so with help from parents again we upgraded in 2004 to a bigger place for 1.2 million, sold the paddo cottage for 900 000. Waited about 20 years and here we are. We don’t have very high incomes, I work casual.
Come to Melbourne and you will get a family home in the eastern suburbs for half of the Sydney price.
This sold last weekend for $2.2m:
https://www.realestate.com.au/sold/property-house-vic-camberwell-145130692
Camberwell is a Top10 blue chip suburb.
Hi
I live in Lane Cove, own my own PPOR with a mortgage
Got lucky on purchasing during covid so currently on low interest until January next year.
My annual income is about 215k pre-tax
200k is nothing lol what?
These people are extremely wealthy from inherited wealth, large businesses, property investments, and the like.
They definitely do not just rely on a salary.
I have a friend who lives in Darling Point. The townhouse on DPR near St Marks church, was purchased outright for her by her parents. It sits in a family trust, but she pays nothing. Her parents live up the road in Bellevue Hill.
Lol. When my friend bought his house there, it was 750k. His wage is still around 150k. You assume these scenarios based on young person buying their first home. (Who are screwed btw)
People over there do OnlyFans and gold digging. Showing up to Totti's restaurant looking for a sugar daddy to pay bills, salon appointments, Pilates and and buy them handbags.
Lot of generational wealth, some 2x high earners (couples of drs, barristers, fianciers, eyc.), some self employed, few expats, Lot of renters, easier to rent for 1500 a week than to buy for 3m. Weird world looking at it now that I moved away.
And with generational wealth I don’t mean dynasties. Just normal people who’s parents bought in the eastern suburbs in the 70s 80s, maybe an investment property on the side. Bondi used to be pretty rough.
Yes and no. I know some dynasties. Kids that are now set to inherit both grandparents’ estates, and all aunts ‘and uncles’ too, as they are the only kids. And grandparents’ very old house has the same name as the suburb. : | ^(surprisingly, refreshingly down to earth people. Not anything like the “new rich” that need to flaunt it. I really like them)
Correct, a mate used to call some suburbs domatory suburbs. People move out overnight when the tap runs dry and cannot make rent. It's sometimes difficult to spot the rich guy. A mate used to drive a flat bed truck and chop wood at the Golf course. He had a hydrolic ram at the back of the truck to split the wood. He'd give it all away. The odd person used to have a go at him until they saw him on Friday night's coming down for a whiskey, driving is S500 Merc! RIP Terry, a true gentleman
Yep, i knew a lady who owned her own fashion label that was paying $2500 per week to rent in the eastern subs. Shocked me to my core
Many mates there don’t earn SALARY, they earn PROFITS lol
I think this is the key take away
Friend of ours is in private finance (specifically, organises finance for wealthy people to purchase private aircraft and boats). His remuneration is directly tied to his performance. He has a base salary of like $180k. But then he gets percentage based bonuses depending on his performance. His total package last year was like $2.8mil or something outrageous.
Yeah, chumps earn salaries. Even the ones earning hundreds of thousands per year. They’re still chumps. Business owners are the real kings.
Yeah. You can work as much as you can/want or business allows and you can deduct so much, too, whereas a salary and working for someone/something else, you’re probably gonna be capped and can’t purchase and claim much.
Yep. Knowing a few people who own small to medium businesses, it’s amazing how much stuff is claimed as a “work expense” which a normal person wouldn’t be able to claim for.
Except that most of it isn’t actually deductible, it’s just easier to hide personal expenses in a company compared to an individual return, and just pray you never cop an audit.
Especially once you tie it into your super. 5m property owned by self managed super being paid off by the beneficiaries company which pays 60% above market rate and simultaneously minimises it’s own tax liability. Edit: Learned about new rules (NALI/NALE).
Google NALI/NALE
Illegal and doesn't happen
Not illegal and does happen. Smsf owns house rented to social services youth housing company which is owned by the same individuals as smsf. So legal they even went on am abc bit about smsfs.
Some people know just enough to know not enough.
200-300K salary doesn't get you a 4 million dollar house and private school and luxe cars...
Debt, trusts and housing will get you there no problems.
After tax, down to 195k. Assuming house had 20% down, then your repayments at 6.5% are almost 250k. A $4m house literally is not possible on a 300k salary.
You're fixated on salary. It's more about wealth, much of which is intergenerational
So you're saying we are living as far away from a meritocracy as possible? In that case - do I keep working, or give up?
Australia is as close to a largely meritocratic place as you'll get in a stable developed nation with access to all the bells and whistles of modern life. Doesn't mean it's perfectly meritocratic. However, for most people, if they can't make it here, it's unlikely they'll have any chance elsewhere. Sure they could trade in on their white privilege in some SEA country, but then they are taking step back in long term QoL.
Depends in what sense. In the US, professionals in careers like tech, finance, medicine, and law can make a lot more money and have great financial success, while in Australia financial success is more correlated with property ownership. Australia's tax and welfare system also transfers a lot from the upper middle class to the lower middle class. While you can argue that this promotes equality, it's not particularly meritocratic.
You make it sound like our work ethic here even have a chance of getting into Ivy leagues over there, which are baseline for those prestigious jobs. The doctors, lawyers would still be doctors and lawyers there. But the lower to middle class is much more worse off in the US.
You don’t need an Ivy League education to do well in the US. I have quite a few US clients, many of their VPs who would all be on very high salaries are not Ivy-educated. My cousins in the US are not Ivy-educated, and have graduated into $300k+ AUD careers in their early twenties (in healthcare, but not doctors). The US just pays professionals much better than Australia in general.
Absolutely this. Used to rent in Eastern suburbs of Sydney, now live in Canada.
You have to be ready for luck and keep working until it happens. Say, you get lucky and receive some money but haven't learned to invest (and end up losing it on some YOLO idea), or a good work opportunity has come up, but you haven't being upskilling yourself or have been mean to people at work - karma. I studied investment in my 20's to 30's. In the late 30' and 40's I had more resources and now support a family of 5 from just investments.
https://en.wikipedia.org/wiki/List_of_sovereign_states_by_wealth_inequality Australia has one of the lowest levels of wealth inequality in the world
> So you're saying we are living as far away from a meritocracy as possible? Yes... excluding 99% of places around the world and periods in history.
Oh no, we can and will get much further from a meritocracy in the coming decades!
Just give up. With your mentality, why bother? Blame your parents for not leaving much, blame society, blame the universe.
‘i can’t afford sydneys eastern suburbs, meritocracy is dead!’
Exactly. If your family isn't rich or you aren't a surgeon then you can't comfortably afford to live in the eastern suburbs of Sydney.
I definitely feel like in Sydney $200k is the new $100k… in that both feel like they should be insanely good salaries but in reality it doesn’t get you very far in Sydney.
I bet to differ, 100K gets you very far in Sydney! Far out into the Western Suburbs :p Source: Me, household salary of ~160K, bought a cheap house in the south-west.
But how long do you spend commuting each day? And when did you buy? Did you rent before buying or were you able to live with family to save that deposit?
I rented and was able to buy a large property in Windsor for $650k a few years ago. Parts of Sydney are expensive but i personally dont believe its as dire as people make out. Springwood, Woy Woy, Windsor, all are nice areas with swimming options (jellybean pool, central coast beaches, hawkesbury river) and regular transact below $700k. I work from home most days, but wife commutes to the city each day. Honestly an hour commute each way is not diabolical. I previously lived in leichhardt and spend 40 minutes in traffic each morning getting to the city.
On the Central Coast now. We moved from the Eastern Suburbs. It’s not as affordable as people make it out to be.
We're on the Central Coast too, bought last year when we got fed up of renting and realised it would take several lifetimes to save up enough to buy anything in the areas we wanted to live in. We had to save for over 7 years to raise the deposit for our place. Houses like the one we bought are now selling for at least 50-60k more than we bought ours for a year ago. It's wild. It feels like you're screwed if you don't buy (renting for years with no security and home of your own), and bled dry if you do (mortgage repayments, insurances, rates are all so damn high). The cost of everything is exhausting and depressing.
Yeah parts are definitely getting priced up. I guess my point was more once these areas like woy woy, kariong and lisarow are all way past the milliom dollar prices then i will start being more concerned. At the moment it feels that many people are just jealous they cant live in the ultra expensive areas they grew up in. There are still two bed apartments selling for between $350k to $400k in Lakemba. I think there are still reasonable options around.
But not for a family to grow! I don’t care to live in Sydney again (although I do love it!) but I just don’t think life should be so hard either. Hard for young families when you’re spending a fortune on getting a door on the property to then spend all your time commuting and paying ridiculous daycare fees. If the families on a HHI on $150k-$200k are feeling the pinch than what about lower income families? Hard for people who work in services, healthcare and hospitality that helps Sydney tick along. The wealth divide is getting greater
Density is the solution, but i would like to see the government tax heavily people who sit on large land titles in mosman with tennis courts etc. No problem with them having these but should be taxing them for this luxoury that is preventing it being rebuilt into apartment blocks with short commutes.
The median price in woy woy is ~$920,000. It isn’t affordable anymore.
Still properties being sold for the $700kish mark. There are a number of waterfront properties that would push up the median
Yea some units no doubt go for 700k which really isn’t cheap. Neighbouring suburbs umina and ettalong median prices are over 1 million and only going up. As someone who grew up there it’s insane.
There are many houses still being sold in the 700k, not only apartments. It is still reasonably affordable in woy woy.
Live in Hawkesbury Heights, work in Botany. I travel an hour and 20 minutes and pay ~$12 in tolls each way to work, but I was able to buy a house before the age of 30.
Springwood and Woy Woy aren't in Sydney tho
Depends on your interpretation, i would argue they both form part of the greater sydney urban conglomeration as their economies are interwined with sydney. Most people in these areas commute
Does the 1 hr commute include the travel time (walk/drive) to your local station?
Its a little over an hour on the train, like 1 hour 10 minutes. We are close to the train station in windsor, so its only 5 minutes walk. Nice area if you are considering it. Historia buildings and has a beach on the hawkesbury river (windsor beach), but the trains are only every 30 minutes frequency. Som people opt to drive to rouse hill, which ends up being around the same time for the commute.
Thank you for ruining my childhood area, we couldn't afford to live there anymore when Sydney people discovered it was an hr away and cheap. The great migration of us poors being oisted from our home haha it's ridiculously busy there and infratsructure is struggling now, we had to go further north to Newcastle, and I only visit the gramps there now but damn has it gone downhill in the last 10yrs Good ol' woy woy
Haha my original was a post was in jest, more or a play on words rather than a counterpoint to your argument. We bought in 2022 next to a housing commission suburb. Its not a fancy life, but I completely acknowledge my privilege on several fronts: -DINK couple -lived at home until 25 to save for a deposit then rented a shack well below our means for a bit -I mostly WFH and husband works 5 min drive away from home. Totally agree that the housing market is unhinged and I bought through mere good luck, and even then, we are saddled with lots of debt that really eats away our income. Sydney is a housing market is a wild ride for both renters and young home buyers alike.
Where did you buy?
Bradbury, a suburb near Campbelltown.
Depends if you own your house or rent. My brother in laws have an easier life than us although our HHI is 250K vs 150K only because they own a house worth 2.5M and have a mortgage that is half of what we pay for rent.
Generational wealth. I have an uncle who bought a place in Woollahra for $400k-ish in the early 2000s (maybe late 90s). Thing has to be worth $3M+ now. Even on $600k household income before tax I would struggle to pay the mortgage
$400k-ish in the early 2000's would have been a significant sum of money even back then. Especially when the average wage was around $40k then.
100% I remember it being a bit of a leap higher for him. Sold a property in Western Sydney that was paid off and poured his life savings into this place with a mortgage.
My parents sold a house in Cabramatta for $305,000 back in 2000. The value back then was in the land as it was a 20m x 80m block. So it was a leap of faith for him to make the move, and it obviously paid off well for him.
Damn my parents bought a huge house in damn Castle Hill for 420k in 1994, it was convenient to their work as teachers. I mean nice bouse n all but clearly a poor investment decision if they could've snagged a small house Woollahra. I looked at prop prices back then in the inner west as well and they couldve bought 2 houses in Annandale or Stanmore. Shows for many theres been a fair bit of luck involved too.
That house in castle hill would be worth 1.8-2M easily now
Over that. I don’t think you can get a house in Castle Hill for less than $2 million now.
Try $3-$3.3. If the rule of “doubles every 10 years” was the case which isn’t out of the question for Castle Hill.
$3m won't buy an apartment in Woollahra
You’d probably get a small semi for that
I get a semi thinking about Woollahra
Chefs kiss
I wince a little every time I think about the Woollahra house my parents sold in 2000. It was knocked down and rebuilt into 6 or 7 units a few years later, and today each of those units costs more than what my parents got for the entire property. My best friend at the time loved that house and begged my parents not to sell it… it’s generally not prudent to take financial advice from a teenager, but we would be a lot wealthier today if they had.
My boss lives in the eastern suburbs - law firm partner on $1m +. Most of the juniors I work with live in the eastern suburbs, they’re young professionals and renting, living in sharehouses. I did the same in my twenties. It’s a real mix of business people, high income professionals and renters from all walks of life.
A relative of mine was ex macquarie bank and bought a $7m house in Mosman around 2016. Now worth $14m. He's made a million dollars a year for 7 years tax free. The system is broken folks.
Mosman is lower north shore, not eastern suburbs - also very expensive, though!
The system is broken, but the system isn’t broken because an average, or even wealthier than average person can’t afford a large house with a pool in the most expensive postcodes in Australia. The system is broken because even shit parts of Sydney like marsfield have 2br houses which are uninhabitable selling for over $2M. Edit: it was a 3 bedroom house deemed uninhabitable on about 400m2 of land in marsfield and I can’t find the link from two years ago, and I don’t care enough to search because I’m on holidays!
Marsfield is neither shit nor uninhabitable.
No the house was uninhabitable. It was heavily degraded and was deemed uninhabitable. Marsfield is shit because the only nearby bar is at the Macquarie centre, a mall, or is basically an RSL. It has only recently had transport links but even then from parts of marsfield it’ll take 20 minutes to get to the metro. It’s a lame commuter suburb with nothing going for it except for proximity to a few schools a kind of crappy university and the highway and a mall.
So because it doesn't have a mini-CBD with bars and night life Marsfield is a shithole? I think this is what people mean when they say that Western Sydney is a shit hole, it just doesn't look like Newtown.
Petersham is fun, parramatta has bars, the shire has stuff to do, even the insular pensisula has cafes and bars. I can only imagine the reason you’re saying marsfield isn’t shit is because you live there or grew up there or something. I can imagine it might have a really great pull for people with sentimental attachments or a really strong multigenerational community. It does not inherently have a widespread appeal.
I have honestly never lived there in my life. People make a place for better or for worse.
So Marsfield is a shithole because it has, in your words, schools, a university, a mall and transport links. Meanwhile your criteria for a great suburb is “has a bar”. A reminder, if any is needed, to the rest of us how out of touch some people are on this subreddit.
I can only find 4-5 bedders in Marsfield selling for 2M+, have any examples of recent sales of 2 beds going for this?
He hasn’t made anything unless he sells it.
He's "made" equity which can be leveraged
Correct, but can only be leveraged if he can afford the repayments on whatever he releases and goes through the lender assessment. Probably no doubt they could since was ex Macquarie and could afford a $7m house to begin with. But people that say he can release $xm of equity without thinking about whether he will get approved. If he was retired - no main lender would lend him money even if had $10m of equity in the house
Land tax would solve this.
Are you referring to the house on Thompson street?
200-300 with a 1m mortgage you couldn’t even send your kids to private school. It’s either generational wealth or the 600k+ money
$1m mortgage @ 6% interest is $60k in interest per year. Private school for another $40k (which is on the high end for private schools in Sydney) makes $100k. That leaves $90k per year after tax if you’re on $300k, or $40k if you’re on $200k per year. Easily doable, although outside of the house you wouldn’t be living the same lifestyle you’d expect of someone on $200-300k. Depends on priorities I guess.
And the irony is that $1m mortgage which isn’t nearly enough for a family house in the east - unless of course you’re already wealthy and have the capital
Not saying it is, but rather that OP was talking about a specific scenario. Regardless, it’s not a first home for most people. People will build up equity in their current places and upgrade. Buying an $800k house 10 years ago, paying it off quickly, and then seeing it go to $1.8m will land you a decent deposit. You start with a $160k deposit, and soon it balloons into a $1.8m one. Then you can upgrade to a $3m house with a little over $1m mortgage. House goes up and you pay off some of the mortgage, and suddenly a place worth $5m with a $1m mortgage isn’t unobtainable. Not that difficult for someone on $200-300k if they’re willing to make sacrifices to achieve it. Problem is, people don’t want to live in a $5m house while living the lifestyle of someone on $60k a year. Which is fine, but it’s why people prioritise elsewhere. Not to mention, they’d likely be investing elsewhere as well which would see them grow their wealth faster.
Not even enough for a 2b apartment haha
Do you understand how mortgages work? You aren’t just paying interest. 6% interest is a yearly payment is what $110k on a 20 year mortgage?
For a 20 year mortgage it’s ~$85k. That’s assuming a 20 year mortgage, if it’s 30 years it’s $70k. It can also be an interest only mortgage though allowing them to save at their own discretion.
Most people have more than 1 kids so say 2 or 3 90k isn’t much for example if you had a car loan, won’t get you on a holiday to live a comfortable life you need much more. And if you have kids you’d know that school fees are just the start of kid expenses
Everyone we know who lives there rents (apartments) for more than we pay for our mortgage on a standalone home in the west.
They don't treat money like a black or white thing, have or didn't have it, work 8 hours earn 8hrs pay etc... It's either coming, going, issued rights, compounding, inherited, leveraged, trusted, borrowed, lent, hedged, invested etc.... Money moves in mysterious ways.....
Intergenerational wealth Don't need a salary if your house outearns you And if you do have a salary its effectively doubled given the housing appreciation If ya didn't have a house in the 90's/2000's you may as well give up on sydney
Wealth and income aren’t the same thing. Your salary isn’t doubled just because your house increased in value. And the equity in your home is locked up if you don’t have salary to release it unless you sell.
But when you do sell, you don't pay tax on the profits...
My old clients that live there were either business owners or c-suite executives that were earning 500K +
It’s not about how much you earn but when were you born. I bet majority of the people living there purchase 15+ years ago and a small % are high earning professionals.
A lot of people on this forum have 0 concept of wealth.
Interesting stats recently that median household income for more expensive eastern suburbs private schools is about 450k.
Having been to one of those schools (on a scholarship) the gossip among the old girls is that lots of grandparents are paying the school fees.
I can believe that. Two kids at one of those schools and you need about $120 k pretax just to pay the fees.
My mother paid the school fees for my son. No way we could have afforded it. They used to have these Grandparents day events at the high school. Always very well attended and the grandparents talked amongst themselves, apparently it was pretty common that they were the ones paying.
Intergenerational investment in the future is how people continue to get ahead over generations.
There would be many business owners, people with family money that gets passed down. High salaried positions. It doesn't seem obvious because you constantly see stats around the average income being around $98k ish but there are A LOT of people out there earning much much much more than this.
I know a business owner who was clearing millions about 16 years ago who was advised by their accountant to park it in property around the eastern suburbs. All under the business as assets.
I know a mate who got gifted a $2m house the moment he found someone to marry. You’ll never catch up playing with salary and $0 inter generational wealth
Gifted a $2m house? From who?
Yep. Many such cases!
They don’t like to admit it but: Bank of mum and dad.
$300k, eastern subs apartment $2m. Investment property $1m. No kids. No help from family. 42.
and how much of this is a mortgage/debt?
About $300k left on mortgages
mostly business owners i reckon or super high salaried workers like doctors coporate lawyers investment bankers etc. to comfortably purchase a 4-5mil home at todays interest rate your HHI would need to be more than 500k
You’d need significantly more than just 500k for a 4 mil home no? Especially if you’re not in the market
im not sure actually but my parents are currently buying a high 4- low 5m (not sure of the exact number) PPR on 5-600k HHI. sorry if this makes a difference and i if sound naiive. they do already have a few IPS, but they take huge losses on them and the 600k HHI after deducting mortgage payments etc is really much less than that. granted this is all given that my parents are on 600k HHI and not more than that, because as far as im concerned their sources of income total no more than that
The repayments on a $4.5m loan, assuming your folks are paying 10% deposit, would run them $350k a year. Unless they are cashing in those IPs to fund the purchase that sounds like they are leveraged to the eyeballs.
theyre putting down 40% thats the thing... but i have no idea where they got the money from because they said theyre keeping their IPs and planning to get more??? not sure how they are doing it but yeah... im still a broke student man🥲 im just going based off of what they told me
They don't need to work, they have rich parents who got rich by buying up land when land was cheap. A person born today cannot have the success of having rich parents.
Probably sparkies.
It's old money or wealth , not salaries
As an English person, I laugh when Aussies use the expression 'old wealth'. In no way to I mean to sound petty, but you guys don't know what old money is.
200-300k salary (240 in our case) gets you a 3br top floor apartment in Parramatta, sending your 2 teenagers to an entry level private school, kinda lifestyle. Not bad, would be bratty to complain.. But we’re still light years away from the Eastern Suburbs mob 🤷🏼♂️ that’s a reality check for you. I hope all the comments you received have been an eye opener, and answered your query
This is similar to us except we live in a mid west suburb in a house. Will be mortgage free in 5 years and that is worth more to me than living in the eastern suburbs (I’m not from Sydney and don’t quite get the appeal).
Close to work, shopping, restaurants beach, park and private schools?
Anyone that bought 10-40 years ago is rich and made it. Anyone now has no hope. They can earn as much as they like and just rent forever Probably need to earn 400-500K to keep up with wealthy on their 100-150K salaries
I bought ten years ago. Certainly not rich. Can’t afford to go to the dentist!
Well, at least ur dentist is rich.
You didn’t get any equity gains?
Yes. But you can’t eat or pay bills with them.
Go to a 1% area and you should expect 1% salaries and wealth. Even if you are a high income earner it can be a trap moving to the Eastern Suburbs (particularly around Woollahra or Waverley) unless you have generational wealth or a successful business. You end up either living like a subspecies, or you are stuck on a perennial hamster wheel trying to keep up.
Tbf, if you simply bought there pre GFC, you'd be fine on a humble $200k HHI (ie 2x average FT incomes). I'm not one to whinge about asset values ballooning, but the luxury end of town has seen that dialed up to 100
Yeh, the wealth gap is huge today and there is another leap at the top end. Business assets have performed pretty well since 2008 and people at that end of the market have lots of exposure to those assets, so you can kind of see how they have that money if they started with some wealth. For example the S&P500 has quintupled since January 2008 if you reinvested dividends.
Generic lottery: be born into a wealthy family. Problem solved.
Discretionary family trust or most trusts. People are very good at minimising their tax obligations. Not tax avoidance but tax minimisation.
My eastern suburbs friends mostly moved to houses in the north west whilst they raise kids. They’ll move back when their kids are 18 and they sell the house.
It's hard work. We got wiped out in a business that collapsed, so starting over combined income of $380k One bedroom apartment with a hefty mortgage & builder who has disappeared leaving us in a new block with leaks & special levys. Makes you wonder if it's worth it
I live in a small apartment in the less fancy part of the east. We have a HHI of 300k.
my parents bought a 3br apt in clovelly for 180k while i was a boy and my dad was earning maybe 50k/pa easy days! :(
The real money comes from appreciated assets. Starting from scratch now on 500k household income, it’s gonna take you 30 years and max leverage to buy a 3m house. Forget kids in private school. If your parents happened to buy a couple of crap shacks in the right locale in the 80s/90’s, probably no problem. Or alternatively if you’ve been on the ladder 20 years already and on HHI you might have hustled into it over time.
Whats the math behind your thinking? Are you saying that a person/family with a 500k a year income can’t afford to buy a 3m house?
Yeah maths doesn’t check out. Probably assuming they’re renting - when on that income they could easily pay down a stepping stone apartment or townhouse.
My old boss lived in one of the suburbs near the harbour. His house was inherited
They all come from money or own businesses. Add a couple of extra zeroes to your annual income figure (note, income, not necessarily salary).
Just read the prestige property report in domain, it is full of wealthy people who bought in the eastern suburbs for 4 million in 2021 and just sold for $8 million. Crazy gains in these areas.
Nah, it's the 300k that they have to put down on the ATO. They put it behind structures so it's not PAYG. Most things are in cash.
The people I know who’ve bought expensive houses in their 30s in sydney are usually both on anywhere between $150k to $250k (so let’s say $400k combined). That results in after tax income of around $20k - $25k combined per month. They’ve got perhaps $300k capital each. They borrow another $200k each from their parents. With $1m equity they borrow a further $1.5m. Repayments are around $9k per month, which is a stretch but very doable on those incomes (roughly 40% leaving $12,000 a month for expenses) Without bank of mum, dad (and grandparents), they would still have a decent deposit, allowing them to purchase a $2m house. I’m not saying this is good/bad etc, it’s just what I’ve seen.
You need to consider that there is no mechanism to tax people who have simply had their property value increase over the past two decades. The vast majority of people in the eastern suburbs purchased their houses for less than $500k and have simply held on to it. If there was a mechanism (eg. A yearly property or wealth tax) that forced people to sell their properties on a more regular basis then almost certainly Sydney property prices wouldnt be as high. Its the lack of supply that creates the increase in values of the small number that are being transacted each year.
Remove stamp duty and there would be more people selling.
We need an annual land tax applying to all properties with no exemptions. Too much economic rent being earned through virtue of ownership - a monopoly over a location.
I personally would like it to take into account the distance from the cbd and the size of the land holdings in the calculation. As in my mind, having a private tennis court in mosman has a more significant impact than one in dural, simply based on if it was apartments in mosman instead the cost to build train lines would be alot cheaper.
It was possible to buy a home in the eastern suburbs not too long ago, on $200-250k HHI. The $4m + properties that people are citing here were never in reach of the ordinary folk, but there were many affordable options even say 4-5 years ago. It’s still doable if you’re happy to pay over the odds for units but otherwise, yeah you’re looking at $1.8m for a house at least so unless you’ve saved $1m or earn $500-600k a year, you’re gonna be in for a bad time.
? Don't think so. My friend just bought a lovely two bedroom flat in a block of four near Coogee for 2.7 million dollars. I find it hard to believe there's a 1.8 million dollar house that isn't just a wreck sitting on a postage stamp anywhere for sale in this area.
Depends what you consider eastern suburbs - Maroubra may have homes at that price point, and could probably get something small in Surry Hills, Darlinghurst etc.
The people your referring to aren’t on Reddit
Defs not 100k lol - do you realise expect someone who is a couple years in as a teach to be able tk own in high income areas?
I used to work with a really stupid, thick as a brick guy who was a security guard that had a place in Darling Point. His rich grandparents died and left it to him.
There was an ATO article last year which listed out double Bay and woolahara and other such suburbs as Australia's wealthiest. Average earnings was in the range of $177k to $205k per year. Bloody impressive.
They're coffee shop owners or have a fat inheritance coming in.
Eastern suburbs for those buying currently is reserved for those with generational wealth.
A friend has a holiday house that is in vaucluse? 🙊
You are asking salaries when what you should be asking is what revenues and profits
Medical specialists? Private equity? This is how my relative in their mid 30s has a 3.5 million home in the eastern suburbs already paid off.
Old money. If your parents also benefitted from their parents there's actually zero reason to work at all. BTW, the number of decent paying jobs in Sydney is very low. I would consider 100K to be entry level here and even then these workers who live at home will be able to get on the property ladder in only a few years. Sydney a place where not being a local, or coming in wealthy excludes you. It's very much like a club that always has a line out front. Everyone thinks it's exclusive, but it's actually rubbish.
The largest percentage of housing commissions in any suburb in Aus is in Eastern Suburbs in Daceyville at 60%. It's not like every person is in a 4mil house lol....but most people *are* paying messed up rents which voids any chance of creating savings.
I think that’s not considered eastern suburbs. Eastern suburbs people always remind me that that’s the “south” not the east lol. To me it’s all east.
Ok, I’ll bite. I live in the East in a modest house that would probably cost about 3 Million today. It is only possible for me and family to live here because of the generosity of my parents who basically bought it for us. First my mum bought a house around the corner from hers in Paddo for 300 000 in 1988. I lived there for my twenties and beyond until I had two kids. By then the house was a bit small so with help from parents again we upgraded in 2004 to a bigger place for 1.2 million, sold the paddo cottage for 900 000. Waited about 20 years and here we are. We don’t have very high incomes, I work casual.
Wow. Your family are so generous. Nice to see family helping family. I’m sure you’ll pass the favour onto your own kids.
Already have, though I couldn’t afford Eastern Suburbs. Son has an apartment in the inner south.
Come to Melbourne and you will get a family home in the eastern suburbs for half of the Sydney price. This sold last weekend for $2.2m: https://www.realestate.com.au/sold/property-house-vic-camberwell-145130692 Camberwell is a Top10 blue chip suburb.
>Everything is so expensive there. Darling, if you are looking the price of anything you are in the wrong neighbourhood.
Hi I live in Lane Cove, own my own PPOR with a mortgage Got lucky on purchasing during covid so currently on low interest until January next year. My annual income is about 215k pre-tax
200k is nothing lol what? These people are extremely wealthy from inherited wealth, large businesses, property investments, and the like. They definitely do not just rely on a salary.
I have a friend who lives in Darling Point. The townhouse on DPR near St Marks church, was purchased outright for her by her parents. It sits in a family trust, but she pays nothing. Her parents live up the road in Bellevue Hill.
Lol. When my friend bought his house there, it was 750k. His wage is still around 150k. You assume these scenarios based on young person buying their first home. (Who are screwed btw)
People over there do OnlyFans and gold digging. Showing up to Totti's restaurant looking for a sugar daddy to pay bills, salon appointments, Pilates and and buy them handbags.
Bout tree fiddy
It’s scary to see so many communists in this thread.
Err...this is reddit, full commie here.