We just wanted to say a HUGE thank you to all your comments and support ❤. We know it is not an easy decision. Just to clarify, if we were to sell we aren’t totally off the idea of buying again. We would perhaps buy a much smaller or more affordable home. At this point in our lives we just have so many things we want to do and don’t want to be held back by our house. Thanks, A & L
You are very thoughtful. Keep on doing your personal assessment. No one likes being burdened by mortgage. Would you consider renting it out so that you could keep the home? Just a thing to think about.
this is such a hard pill to swallow. Being honest about regretting buying a place you cant sufficiently afford, admitting the lifestyle creep, admitting that you made a big mistake, makes me understand you more and will take all these into consideration when I buy my own home in the future. Thank you! I know this video gave you huge relief by just letting it out and being honest talking about it cos I can really feel the burden that's weighing you down. Hope it ends well! :)
Many will often do things too fast. They want their dream house as their first house, but if we’re being honest here, only the super rich can do it in one simple step. For us normal people, we need to do it in steps. To be comfortable with the size, enjoy the neighborhood (where it is located and such so you’re not only have to rely on a car/cars. When it should be done from one’s actual finances and not what the eyes desires. Many will not give wiggle room for inflation and interest rate, if someone needs to cut back at work due to medical reasons for a while or whatever might come up. To get a house where everything feels tight financially is such a massive risk, and many will notice that they wanted too mich too soon. Before people did the climb within the real estate market, where they settled with something smaller and allowed it to take some years where they lived and then sold, got something a bit bigger and eventually they managed to get to the level where they actually found their dream home and could make an investment that didn’t make everything feel scary and tough financially. This house ngl. is way too nice for people with semi good economy. Patience is so important when dealing with finances and investments like these! I hope things works out, but sadly knowledge is something you can’t skip and a bank who wants to make money aren’t interested in if people will ruin their finsnces with an investment like this. Too many don’t educate themselves properly and dive in and gets a cold ”surprise” when they land in the water. After all must we have homes with kitchens where we can host 15 people without anyone feeling crowded, when we don’t have a multi millionaire budget unless the bank will help and push in a few mill?! No need to impress ousiders either by showing off a bigger real estate! It’s really no shame in saying ”I can’t afford this we need to look at real estate at our actual level”.
Thank you for your honesty. I sometimes regret not buying my dream home . Instead I went with a townhome that was 300k. I ended up paying off the townhome in 5 years . If I would of bought a house I'm not sure if I could of paid it off . The crazy part is my business took a 70% dive after I paid off the townhouse . So it's a good thing I didn't buy a bigger home because I probably would be stress out with the maintenance and payment. Also, at this stage of my life, I'm so sick and tired of working and hustling. I just want to travel and enjoy my daughter's last few years being with me.
I'm an American and I live in in a modest home in the US. We could probably afford something nicer, but I really like being stress free. The US system of fixed 30-year mortgage rates is a real blessing.
Completely agree. I suspect home ownership is normally or historically the first step in starting a family. People want secure accommodation before starting a family. The old trend was buy a first home in your early 20's, get married, but a slightly bigger home for young kids, upgrade to something a bit bigger (forever home) when the kids get to their teens, then down size when you get to your 60's or 70's. People working in retail earning $30K and homes were $80k-$90k in mid 1990's I've heard of people back then paying off a house in 5-10 years. No if people aren't buying a first home till your late 30's early 40's. 25-30 year mortgage. Even with 2 incomes, good luck paying off a $1mill any sooner. So worst case, buy a home when your 40 +30 years. You'll be 70 buy the time you pay off your first house. Even if you buy a cheaper starter house, say about $400k. That's starter home not a family home for the most part. It's still going to be someone in their 30's. I suspect that declining birthrates in almost every country is correlated to the cost of home ownership.
I think most just don't want family life these days because years ago there was also many struggles and sacrifices. We have to choose and nothing has changed in that regard.😊
I live in the U.S. and paid off my home a couple of years ago. It isn't my dream house or dream neighborhood but I am still very happy to be free of the stress of mortgage payments. I think we all need to get back to a simpler way of living.
I was also wondering why their interest rate went up every month. When I purchased my home in 2020 I locked into a 2.75 interest rate that can’t go up as long as I own the home and do not refinance.
Yeah I was confused about this. We're locked in at 3% until we refinance or sell. I wouldn't be able to handle that uncertainty! Part of the lure for me was the relative stability of the monthly payments.
In France I’d say 99% of mortgages have fixed interest rates. Iceland have a huge issue with these variable interest rates. I was able to get a mortgage at 1.36% over 25 years, it was right at the begining of the pandemic, I’m so glad I bought when I did, everything has gone up so much since !
Interesting. I guess as an American, we have never really prioritized vacations or travel over home ownership. I’m in my 50’s and vacations for my parents and myself has always been only something you could do if you had money left over after paying all your bills and then it might only be going a couple states away or a road trip or two. International travel is a luxury that few can afford. I have noticed more young people prioritizing this over homes as I guess homes feel out of reach for them. We also tend to mostly get fixed rate mortgages here in the states or get cheaper starter homes or fixer uppers and then sell up as you get older. But home ownership is harder and harder for young people to achieve because home prices are rising so high compared to salaries.
I agree with your points, especially on travel. But one thing is that "starter homes" don't exist in many places anymore (in the U.S). If you're buying an older home, it will come with many problems that will have to be paid for out-of-pocket, lessening the advantage of buying a cheaper, old home. (My home cost an extra $27k for a bad roof and bathroom with a leak that forced a remodel.) Cheaper homes are on the outskirts of cities and that will add a cost for people that have to commute, not the mention time lost daily. At best, I've seen starter homes (old, two bedrooms) in my area going for about $50K less, but that's not even worth it if the smaller space is going to make life harder. And it's not like many people can just upgrade when they want to have kids. There's a big financial loss when selling a home (in most markets) due to all the commission fees and taxes. So you're kind of forced to buy a home you believe you can tolerate for at least 10 years.
Just wanted to write with a big dose of solidarity! We bought our house 18 months ago and the interest rates are forcing our hands now. We make really good money but it isn’t enough to get through. We can barely travel or do anything. Going to try to sell, albeit for a potentially significant loss. Solidarity and hugs and thank you for this really powerful video. The honesty and directness is refreshing!!
Thank you for sharing your story as I think many people will relate to it. I think you are very correct in realizing that having a big mortgage comes with huge restrictions, responsibility & drawbacks. Unfortunately life is about choices & they all have pros & cons. Personally I started with a small house, & paid it down before repeating & moving up a bit. We've done this 4 times, and also own our nice home outright plus another 11 properties with quite low debt & raised 4 children. That was my priority over travel (I'm also scared of flying - but more scared of being poor). If you can be flexible about where you live & ignore what your friends are doing...buying something where the rent covers your costs could set you free for travel. And having children! PS they don't mind sharing rooms or going to government schools. I'm now 60, financially free & you don't feel old if you keep fit. Xxx I wish you well.
Been there; done that. We sold the house we regretted buying in under a year's time and are happily renting a new 2 bedroom, 2 1/2 bathroom townhome we so happily call home. We are comfortable and have no desire to buy right now. Hope you both are seeking Divine guidance about your upcoming decision. Thank you for sharing your story! Best wishes to you!
I’m so happy you’re talking about this! Because the generation before me instilled in me “if you’re not working to own a home then what are you really doing with your life” My parents hate my decision to rent and not own. They married young and in the same year owned a home - I try to tell them my path and their path, my time and their time are and will always be different! So I’m just thrilled that you’re speaking about this topic! I am 27 and I have no fear of being 30 and not owning my own home. I like renting!
You should both be so proud of yourselves. Honest and open communication is the most important thing in any relationship, no matter what is going. I hope you can sell and get a great price for your home ❤
A London, UK resident here….I’m in my 40s and husband in his 50s, no kids or pets. Took us a year to find and purchase our first (own) home and there is nothing like closing the door and being at home. What I hear from you is that you are not ready to settle down, yet…so, get a small home and upgrade when you are more clear about your long term goals😊
To each their own, my point is that at such a young age you might have different priorities. The need for setting for most people comes with the age. We will need to set out priorities and be realistic at the different stages.. we always have to give something up to have another thing, there's no way to have it all at once
It's surprising to hear someone in such a similar situation as myself so far away. Me and my partner bought a condo in California (US) because of the whole "American Dream" thing and we just realized homeownership is not for us. We totally miss being renters. In the US you usually have to hold the home for 2 years for tax purposes but we will probably be selling as soon as possible. I also have a fear of flying like you. I hope everything goes well for you and your partner.
I honestly appreciate the honesty in this video. It is refreshing and also a great example that just talking about your thoughts on the ‘norms’ can help others realise that they aren’t alone in their thoughts, struggles or issues with things we are ‘meant to do’. My Dad always used to say “Never send yourself broke for brick and mortar. You don’t need the fancy furnishings, you just need a roof over your head. Life is out there not in here (referring to the house). These words have always stuck with me. As much as I am a homebody, I have come to realise that stressing over a payment that I have in order to host a life that isn’t what I value. It isn’t the house, its the people in it. I also believe that I have no intention of spending my weekends cleaning and maintaining a house. I would rather spend it out in the park, down at the beach or on weekend getaways. That is why a smaller villa or apartment will be the choice we are going for. Thank you again for the honesty Angie. It is nice to see some real thoughts from other couples than mirror ours. 😊
I'm 40ish originally from Sydney with no kids and no pets since they passed away in 2021. I can relate to a lot of the feelings you shared as I felt the same stuck feeling with our house. We both work remotely and use to travel a lot before COVID. So after our pets passed away towards the end of 2021 we felt that this was the last of what was tying us down we made the decision to sell everything and travel full time. We practically live out of 3 suitcases and dont miss any of the stuff we use to own. It really helps you realise how un-necessary a lot of the crap you by and accumulate over the years is We have been moving around Malaysia, Thailand, Vietnam, Japan, Korea staying as long as our tourist visas allow and generally change cities every 4 weeks. We've stayed in a mix of condos and hotels with a budget of about $50/day for accomodation. Flying around Asia is also super cheap with flights around the $50 mark. Other than missing seeing our families regularly we love everything about our life now like not having to pay a mortgage, no utilities, no vehicle maintenance etc. The cost of living is very very cheap when you are earning AUD/USD and spending it in Asia so much so it's not even worth cooking yourself as you can eat out for about AU$10 a day. Even if you are not a public transport kind of person a Grab (uber) ride will be less than $5 one way! It's like having a chauffeur! Am I worried about not having a home in Australia to come home for when i'm older? Nope not at all after seeing what your money can get in Asia. eg. you can get a 3 bedroom luxury condo in KL or Bangkok for less than AU$300k. Yes there are condos cheaper than that however foreigners cannot buy these. Sorry Australia but the great Australian dream is a relic of the past, you're just being ripped off for everything in Australia be it petrol, electricity, groceries, internet etc....
Now that I’m in my 50s, I can say that I think experiences are more important than things. If you love to travel, don’t sacrifice it for a thing, even if it’s a big thing like a house.
Interest rates rising are a biggy at the moment. I’d probably consider talking to a financial adviser. Buying and selling quickly can be expensive (as you know having done it). Renting a room or your air bnb out permanently (like tenanted) is an option for some ongoing income. If you get the right person, they may even care for your cats if you go away. All the best guys!
I was going to say the same thing, rent it out tenanted. Great idea re renter looking after the cats. Or rent the house out, and you guys rent something smaller elsewhere.
I normally never comment on RUclips. However, I really feel that going to your accountant not the mortgage broker is a good idea. Renting the place out, while you rent somewhere else could be such a tax effect way to keep your property and still have your lifestyle that you wish. In the end having that house in retirement paid off by having rented it might be the answer. While you will still have costs, once you talk to an accountant you might see it could be a compromise or at least until the market goes back up.
Exactly, so many people made the mistake of over extending themselves, financial markets are cyclic, people don’t look at history. Selling your home would be the smartest financial move for many now.
We started to build our house at the same time when Covid pandemic started. We decided to build by ourselves as many as possible to save money. My husband spent thousands of hours building our house, other a lot of hours by studying the appropriate processes. We have two children,now aged 8 and 13. It was the hardest time of my life, because we live 500km far away from whole family. But finaly we did it, we are living in the house and love it. It was tough, but totally worth it. We have about 1/3 mortgage as it is the actual hiuse price,we save so much money as possible. Moreover, we have fixation of intetest here in Czech Republic, so we know that for next 5 years we will pay the same amount. What will be after that, who knows. But we continue with savings to pay bacj as much money as possible before intetest will change.
Australia is one of the most expensive places to live in the world. Ive met so many tourists who cant believe how expensive our food is etc. So in the future i believe many Aussies wont be owning homes, it will be just too hard! Im no financial expert but I do believe in the mantra you only live once, take opportunities while you can. My father paid off his mortgage and sadly passed only 4 years into his retirement and my mother paid off her home in her 60s and is glad to own a home but constantly says she missed out on a lot in her younger years as all her money just went to the house.
Love that you are talking about your Homeownership experience. People need to hear more about other people's Homeownership experience. Being a Realtor in Atlanta, GA market in the US. Prices are continuing to raise, outside of interest rates. And, I am advising clients to wait to buy, unless they feel they can sustain their lifestyle paying a mortgage. At the moment, even though rents have risen, it is still cheaper than mortgages in some cities and states. I don't want no one I'm working with to go underwater or foreclosure on their house. And now some people are illiquid with their house. Nonetheless, love what you are talking about in this video. Have a wonderful day!
Thanks for this video. I'm currently in the process of saving for my first home, I have just shy of a 5% deposit saved which has taken me two years and I just feel like its becoming more unachievable every day, but I feel like I have to buy a home and I can't "start my life" until I own a home. I'm seriously thinking about just investing the money instead and putting my fortnightly savings towards shares and this video has helped me see how overrated owning a home is for the sake of owning a home.
Something that a lot of people don’t factor into the price of owning your own home are all the insurances, rates, maintenance costs, body corporate/HOA fees (in some cases) and budgeting for the fact that interest rates can dramatically increase - just something to think about too. While renting can be less stable depending on where you live, investing could be a really great option and make more financial sense in the long run. Good luck with whatever you decide to do.
Yea I'm glad you came to your own conclusions. You can't save your way to a down payment unfortunately. Either invest the money till you reach a certain goal and sell those shares or just forget about it
We are in the same position! We built at a budget we could comfortably afford, moved in by 2021 Dec, then had a baby and now I’m not working full time and we never thought the interest rates would go up this much! We’re looking at selling too. Breaks our hearts but we don’t feel it’s worth working just to pay the mortgage and have nothing left for other things that do matter to us.
We have the exact same story. We purchased off the plan in 2020, moved in sept 2021 and had our first baby down to 1 income for now. Thinking we have to sell. It breaks our hearts ☹️
Just stumbled across this video and really appreciate the honesty. I’m single, in my 30s, in NZ, and bought my first (small) home about 6 months before peak prices here. My (floating) interest rate has increased 3 times in 8 months. Cost of living increases are tough! My saving grace is I borrowed less than I was offered and put down a 30% deposit. Aussie and NZ are the same in which the ‘dream’ is to be a home owner. Here, my rent would be slightly more than the mortgage (but then I have rates, insurance etc on top of that) but at this stage in life and after covid lockdowns etc it was more important for me to have stability in my living situation. It’s not my dream home but I’m very happy and it’s a start. Thanks for the video and good luck for whatever you decide to do.
Amazing video and one I think a lot of people can relate to. Just if I may, a word about the kids thing. Years ago, my husband and I were struggling with our mortgage and renovation/ maintenance issues - despite having "good jobs" which often demanded long hours of us. My workmate, whom I'd befriended, when I mentioned the kids thing, asked me candidly, Can you afford to do that? At the time I thought it was a bit rude, but she had a point. You have to REALLY want to be a parent for it to be in any way worthwhile, not yeah, maybe so-so. Otherwise your children will pick up on your resentment and frustration cos life sure ain't easy. It's perfect okay to not have kids. Just saying.
when my husband and I were younger we were told to be successful in life you have to buy a home. but bricks and mortar come at a cost. we decided the price we were paying was greater than any monetary value we could think of. our home was costing us our marriage, our family and our lifestyle because we had to increase the amount of work we were doing just to try and make end meet. we were missing out on life and missing each other. it was also affecting our mental and physical health. We have since sold our orignal home and down graded, and We couldn't be happier. We work less, see each other more and our children get to see their parents doing more than just working. We can now afford to go on a family holiday. because we chose family over a house.
While it seems a long way off, if you have your own house when you retire, it is a great position to be in. Through work I deal with a lot of older people who are struggling to afford housing while living on a limited fixed income.
A valid point. However, on the flip side, I have known of several retired/ pensioner home owners who really struggle to meet the costs of home ownership and maintenance, even with a fully paid off mortgage.
They would be investing the savings they'd make due to renting so over 30 years they'd have enough to buy a small 2 bed house as retirees if they wanted to
@@roxydee1452then these people need to downsize & buy a smaller home with the proceeds from the sell of their current home. Many older people with fully paid off mortgages have homes that are too big anyways. i.e. sell their $1M home and buy one all cash for $500k.
Thank you for being so candid. So many people are private and don't divulge anything, and just act like their lives are perfect. As a single person and renting, it's helpful to see how things can be on the other side. I really appreciate the honesty! By the way, what does Louis do for work and how did you meet? I need to find a highly paid partner haha (kidding) Xx
He owns a website publishing company. We actually met at work; we both used to be valets at a 5-star hotel in Melbourne. I've known him for 8 years, and we have been together for 5.5 years.
Great insights. Thanks for sharing. Life’s too short to live it for someone else’s dream. Whether it be travelling or owning a home. Your happiness is what’s most important ☺️
Angie, you may be paying 2.5 times the purchase price of the house over 30 years (worst case scenario as you may pay it off far sooner), but what you don’t realise is that the house will probably be worth around 5-6 times as much by then. The costs associated with selling and buying back in (agent fees, legal fees, stamp duty) will absolutely set you back many years which you will regret in future.
There's no guarantee the property will be worth 5-6 times the value in 30 years time. Consider what that price tag will actually be and consider how the upcoming generations will ever afford homes that cost 5-6 times what they do now. Please do not wish this on young people.
Disagree, she’s over extended, she’s feeling the heat, she doesn’t want it as a forever home, travel is a main priority, cats are an issue, her mortgage is huge, waste of current money, she’s young, current top financial will tell you, break your pride, sell your home, rent for a while until the market calms. You’re welcome.
I’m selling my house and I’m going to buy land that my daughter and I can both build small homes on and make it our little family compound. I worry that she will never get to be a homeowner otherwise and I don’t want her to have to wait for me to die to inherit my home, I’d rather her get into a home now in her early 30’s. Then when I do die, she can then rent out my home for income and she could always add on bedrooms if she needs more room.
@@TheRealdalit’s an amazing opportunity. We bought 6.5 acres and have two houses on it. Our kids will be fine and when we kick off they have many options. Land is an incredible investment.
Me and my husband currently have a 5 year fixed mortgage that comes up for renewal next summer, with interest rates continuing to rise I have huge anxiety if we will be able to afford our house. We have been here almost 10 years. Downsizing is unfortunately not really an option with the reality market we live in 😢. Anything smaller is close to what we paid for our current house almost 10 years ago. There is a real lack of affordable housing where we live in Canada and the rent rates are crazy high
It looks hard now, but mortgage stays the same (and hopefully lower if rates go down again) while house prices/rents increase. Also we're fine with ours - don't buy too much above your income. Our mortgage is only 2x our income.
Honest truth / I can summarise that since the beginning, everything is based on “want” instead of “need”. Key points why? At one point, you want the house. 2. Want a bigger house maybe for the family and kids. 3. Also want to travel ? For a month? 4. Want to renovate the house for potential tenant? 5. Selling the house again? 6. Potential to stop working and be a stay home mum. There are so many things going on that you want. Prioritise what is needed.
All good points! Just don’t forget that every time you pay your mortgage a significant amount of that money is still yours, it just changes form into an appreciating asset.
Thank you this hits really close to home, all of it. We’re in the ‘covid’ 2 bed unit phase and have been seriously considering selling and buying a house with land for lots of the same reasons you guys had as well in addition to others (unit disputes, strata issues etc). We still got 5 months left of the low fixed rates so for now just taking advantage of that before committing. It doesn’t help that house prices growth typically outpace units so feels like not making the leap is putting us behind more and more
Thanks Angie to upload this and telling us very honest story of what you guys are facing atm. I was kinda had the similar thought of what you are which renting the place and instead of paying all the cost like rates, interest, Insurance etc of money towards to my future saving or for my holiday and I was doing that for last 3yrs. Then now I'm facing to look for somewhere to stay because my unit owner didn't want to sign for lease due to she needs to use the unit for herself to live. Then I found the new unit to move in but the contract new owner offers only 6month... Im a lot older than you and now I think about how many more yrs I can be in the good health to keep working and so. Also feels like has to face to the end of lease cleaning all the time. Since u guys enjoy move around is good in the way esp no kids yet so a little easier to do so but as you already experienced with your lovely two cats, having more family member is not easy to do many things also. There is no right answer until you yourself find what the best and feel comfortable. I really hope you and Louis find the best idea and it will work on you soon !
Hi Angie, I love watching your videos. I can only imagine how hard this was to film and put out into the world - and without a tear! Girl, you should be so proud of yourself. It takes a lot of self reflection and courage to realise maybe the great Australian dream isn’t for everyone. It’s so easy to get carried away. Can relate on so many levels! Good luck on your journey moving forward. I’m sure bigger and better things are in store for you both xx
Thanks Angie for being so pure & honest, so glad you & lewis have talked, he would be feeling so much better with your support, don't be stuck there & keep suffering, let some one else enjoy the property way too big for you both, it's only bricks & mortar. Just follow your dreams & both travel & be happy. 👍🤗⭐💐🌠🙏
Angie, this was a great video. Thanks for sharing and I admire the courage you had to come out about this, I don't think I could of done it if I was in your position. As you have shared this with us I will share my story with you in the hope it helps you make a decision: I am around your age, maybe a couple of years older. I own my home outright in a nice suburb in a capital city. It's plenty big enough, nothing special, but I now pay less than 5% of my take home income on housing (and it's just me paying for it). When I purchased, I didn't buy the place I wanted but I bought one that I could easily afford and pay off quick. I had a plan (a cost benefit analysis you could call it) to ensure that I only purchased something that was as big as I needed, and I only bought it when I had enough saved that it was cheaper to buy and up-keep than rent. As you now well know / are finding out, the bigger house the bigger the upkeep (and you haven't even had anything go wrong with the house yet). By purchasing only what I need has bought me a tremendous amount of freedom where I now live my life how I want. Since paying off my place I put money aside for spending now (I buy what I want when I want), invest some money for cashflow in the medium term and max out my concessional super contributions for retirement when I am older or if I choose to stop working early, I'll still have more than most for retirement. Buying expensive Australian property is good if you have lots of surplus money and need a safe place to store it (like wealthy foreign investors who can't trust their governments and banks or if you have a big balance in your self-managed superannuation account) otherwise don't fall for the great Australian property scam its designed to keep you poor and enslaved. Normal Australians cant even come close to competing with a lot of foreign investors who have earnt the money internationally (where more corruption is allowed, and lower taxes are paid). Australian housing is not how it was when our parents were young adults, and we need to understand this. Life is too short to waste your energy on paying interest to banks, extra taxes to the government and overpriced repairs to tradesman and Bunnings. I hope my experience helps you with your decision as it seems you guys could easily be in my position and would be much happier than where you are currently. Remember relationships and your happiness are more important than the size of the house you live in.
Such a fantastic video and well done to you guys! I feel like our stories nearly mirrored each other, as we bought our first home January 2020. We do love our home, but it’s not in the exact area we really want, so was looking at/considering moving up the ladder to the nicer area last year/beginning of this year. We ended up deciding against it because one thing we really appreciate is the affordability of our home. We did extend our home which helped big time and still have potential to make our home even bigger and nicer to live in. But yeah all of this to say we very nearly did bite off more than we could chew. Life lessons can be hard but they always make you a better, more well-rounded person. So you will get there. Thanks for the transparency ❤
I can totally appreciate how you're feeling, good on Lewis for sharing his worries, big step. Have you considered buying a 2 bedroom unit again. I only say that because you may find the rental payments may come out slightly less than a smaller mortgage & you'll still have the investment over a longer period of time when your life may change if you have children. As you've ust learnt how if feels to have a large mortagage you may find the instability of renting may become overwhelming in a couple of years. I've been a renter with a child & I move about 10 times in his schooling years. I've now bought & feel safe & secure even though the mortgage is high, I see that long term security.
We would in the future look at another 2 bedroom unit for sure! Especially if it was one as good as our first home. If we could buy that back we 100% would.
Great video reminds me of a class I took in university in the US. Family financial management. I was about 20 years old and we had a class debate about home ownership vs home rental. We all agreed that ownership only makes sense when youre ready to settle down in one locaiion for 5-7 years or more. Also where you have stability with your career and not planning to move or relocate soon. If you are still mobile and growing in your career its probably best to rent so that youre free to relocate on a whim if better job prospects present themselves. Airbnb apart from needing cleans introduces a new visitor to your home and reduces your freedom and privacy. Maybe in future you can save to build a house without a mortgage.
Mortgage stress is real! If you guys plan on having kids and pets it might be good to have stability in owning a home, just food for thought. Priorities also change a lot when kids come too- i was very much like you and love love loved travel too but now with kids i am content not travelling until later on, and i never thought that that would ever be the case. But then again you could always sell now and buy a smaller place later on if you wanted to travel now.
I’m a Mortgage Broker in Melbourne and thanks for being so brave to tell YOUR STORY. It’s definitely taboo to talk about finances in an open forum. It’s vital for anyone who is considering taking on a mortgage to ensure do a solid post settlement household budget and also take into account higher mortgage payments. Current assessments for mortgage applications are buffered by 3% rate increases. Principal reductions are known as lump sums. That reduces the loan repayments vs placing the cash in an offset account or redraw it only reduces your interest bill However, loan repayments remain the same. That’s the difference between lump sum reduction vs placing funds in your offset / redraw 👍 FYI:There’s interest only loans with 100% offset account available as a product features.
I am so glad I bought alone! I got a 2 bedroom place in May in Melbourne and it’s a relief to know I’m not paying more then I was before in rent. it’s always important to fight lifestyle, inflation and live below your means.
I was just recommended this video randomly and I like seeing people living a realistic life. I think selling makes sense but I can imagine having to let go of a unique house you love so much. But you are lucky to have a partner that can help you live in beautiful spaces, I’m glad you pointed out you couldn’t afford it by yourself. It’s just me and I wish I had a husband to help me financially. There is no worse stress than financial stress. You don’t need it.
It’s not too hard to get a good husband. You just have to work on being a good person. Be nice, learn to cook, go to church, get your hair done and look your best. I’m obese but I have a good husband. He’s a great provider and he’s very fit. I think he likes me because I’m upbeat and kind, and reliable. I work hard making sure he’s happy and he works hard making sure he provides for me. Hope this helps ❤
Thank you for sharing! So honest and thoughtful, totally understand and agree with what you’ve said in this video. It’s so sad that the difference between renting and owning has stretched so far out from each other it does make it hard to own a home and travel at the same time without being hit hard 😔 all the best for the two of you I’m sure you guys will make the best decision for YOU ❤❤
Keeping the house makes sense for your retirement. Traveling is money down the drain. It’s best to think about the distant future. Having a home that’s paid for means you won’t have to work when you’re 60+ years old. Stability and a shelter are so important.
Do you have an adjustable rate mortgage and not a fixed rate mortgage? Is that why the rate keeps changing? Is there a way to refinance to a fixed low rate mortgage when the rates go down? That first house was so pretty! I love how you decorated it. You make a lot of good points. I wish you all the best!
Well done for not getting caught up in the sunk cost fallacy mindset with your consideration in all of this. Thank you for making this video, its nice to hear a honest perspective from someone a similar age to myself when a lot of the views about home ownership are structured from older generations who experienced a completely different set of circumstances. What makes this process more difficult (I find) is the disconnect and the assumption that its '"not that hard" by those who's home cost was not nearly as expensive when compared to their annual income. I love that you are considering what is a good life for you and making that your focus. I'm going to take a leaf out of your book. Its interesting that in one generation alone we might see a drastic shift of home ownership like never before. It questions a lot surrounding generational ethics, especially when it comes to older demographics using smaller homes as investment properties to fund retirement, while young families can not afford to experience the same lifestyle their parents grew up which enabled them to have the funds to make such investments. Not judging the older generation for taking advantage of their circumstance, however and understanding of privilege seems to be important to make ethical decisions and laws surrounding this. Food for thought.
I think you should renovate the studio apartment and move into it. You can live a tiny house lifestyle while renting out the main house. This would generate rental income and allow you to pay down the mortgage.
Hey there, at the end of the day do what you need to do... but could you live in the studio and rent out the house? The rental market is crazy. I would hate to be a renter again. I would recommend going to a couple of rental open homes, it is a huge eye-opener. If you can save the house by living in the studio for a while, you'd have your home base and hopefully be able to travel more and ride out this interest hike and hopefully not make any loss.
Great video as always! I feel you 110%. It’s a seller market. I’d exit and take the hit immediately. Invest the balance in a fix term deposit for 6 months and rent a small place to relax and save some money while looking for a small townhouse in a 10-20km range from the CBD. At least you may get rid of the mortgage for your new home. The interest rate will keep increasing for the next 12 months And Victoria is in dept so there will be extra taxes and rates expected to be paid by owners. However, DO NOT sell a house unless you buy another. Selling a home and staying at a rental home and travelling would be the biggest mistake you make.All the best for both of you 🤞🏻
My partner and I are paying $5000k a month on our mortgage repayments also (principle and interest). It was $3200 last April when we got our loan but with all the interest rate rises we are now at $5,100 per month. Thankfully we have a bit of $ on our offset account and both make a comfortable wage. :(
Sorry if this is an ignorant question, but why is your interest rate changing every month? Can you not get fixed rate mortgages in Australia? Property taxes are an issue where I am but still the change in the actual mortgage payment is only once a year.
You think renting is better?! 180 applications for one home in 2 weeks. X1 application can take 3 hours to complete, one application required 9 references. One of my previous rental agencies in London said they were unhappy with the amount of references requested. You live somewhere terrified about not being renewed but also terrified that your rent will increase- because it will. It’s not easy to rent at all. It’s a nightmare.
I'm speaking specifically about my situation. Yes it is easier for us to get a rental as there is quite a bit of supply in my area. We are fortunate enough that our budget is not extremely fixed, if we needed to increase our budget we can. I think buying a house is a great option for us as an investment property, not to live in in this stage. Buy where you can afford and rent where you want to live.
You're great. Thanks for the new video. I'm glad you talked openly about things with Lewis. Good luck with whatever decision you guys come up with. Looking forward to the next video!
I hear you, I’ve had all these thoughts too. We have a small mortgage in comparison, very small 3 bed home 1 ba in a semi-rural area. Every increase adds $30-40, but it’s increased by almost $800 a month in a year. I can imagine in comparison with a larger mortgage how much stress it would add. Terrible for the everyday Aussie, even those privileged enough to have own/ed a home. 🙃
I'm in the US and we were sold that 'pie in the sky' dream. I owned two homes over the years and moved to various locations due to my employer and the stress of owning was overwhelming. We decided to never buy again and we have larger emergency funds and our investment portfolio has increased significantly. We are much more financially secure and financially stress free.
Well I am in my 60s, and let me say, you will never be happy in a house where you have to work in a job you don’t like, in order to pay for a house you can’t afford to furnish, all the while stuck there because you can’t afford to travel. I would guess you don’t even use half the house you’re paying all that money for. Honestly life is too short. Get out there and follow your dreams, there’ll be plenty of houses left when you’re ready to buy again.
6:36 no, its not privileged. This is spot on for workers from home, office is next door to bedroom and it does feel a bit claustrophobic. Its that energy, thats why I started to hide my laptop and monitor away to kind of feel its home now
This is good story & example of being house poor. Living above your means and lifestyle creep, no options to do anything...Basically this lady is bound to debt & will never have financialfreedom. I keep thinking of all the money she could be investing, traveling, option to not work etc!!! hard to live below your means, but this is what happens when people HAVE to have the large house. High possibility we're going into recession, being in debt is going to make it hard for this woman
Sounds like you have pretty much decided. Good luck but try not to rush such a big decision. I completely understand mortgage stress and financial stress. It is hard!! I appreciate your honesty and sharing that not all RUclipsrs have the lavish lifestyle. Times are tough. Is there a compromise of buying something smaller again? You would be surprised that you can live in average size homes with kids. I'm a single mum with 2 kids. Average 3 bedroom house, no second living or ensuite. I would love an ensuite but can't be helped. I get that having your own home is the Aussie dream and not for everyone but the idea of paying rent in retirement doesn't appeal to me and the insecurities of renting and having to move unexpectedly worries me. I always said teachers wear so many hats with having to deal with parents etc. Would be a challenging job.
Could you rent the studio out as a permanent granny flat? That way it’s regular income and you don’t need to clean like you would if you air bnb it. You might even be be able to do short term leases on your home when you travel
We could but we honestly wouldn’t get enough per week to make it worth while. We’re also super private so knowing there is someone there constantly probably wouldn’t make us feel comfortable
@@angiedixon Just hold on!! You can do it! A studio granny flat is a worthwhile investment especially when thinking long term. You could get approx. $1500 per month, saving you 30% off your mortgage!! Just add some fencing/landscaping/side access for privacy - in Sydney this is very common and has become the norm, Melbourne is also closely behind. You also only need to do this for max 12-15months, everyone is struggling and cutting back - interest rates will come down, and then you can refinance. In the future, your husband can use it as a home office and your children as a 'teenage retreat'. If that's not an option. Turn your home into an investment property and rent a 2-bed apartment. Switch the loan to interest only which will bring down the repayments and enjoy negative gearing benefits. I am doing this currently, I pay about $200 per week out of my pocket to hold the property (including all expenses) and receive a lovely 6k per year back in my tax return which I use for travelling. Your property (I'm assuming in Melbourne/Victoria) will easily double in value within the next 7-10 years. There will be downs and ups in between, but definitely still worth while holding. All the best!
Thank you for your honest and thoughtful video. It is fantastic that you and your partner are communicating your needs and feelings together. Prioritising both of your needs, then creating a life together around that sounds like an excellent plan. Onwards and upwards!
It’s a catch 22 - for now renting would be fine but as you get older and potentially have children there is no security in the rental market. It’s difficult to find rentals that allow pets, rental inspections 12 weekly and you’re really at the mercy of landlord. But I do agree it is far cheaper and that’s why I am still renting. It’s just when you get to retirement age and need to go into an aged care facility you have to leverage your assets to get a place/pay for cost of care. Most people that require placement own their homes and that funds their care in the final years of their life, that’s just something to consider for way in the future.
This! My nana (95 yo) has moved into an aged care home recently and let me tell you it's not cheap. She essentially had to buy the unit outright ($600,000 approx) plus pay daily maintance and services costs. This is a TRI-Care Facitlity here in the north side of Brisbane. There are cheaper aged care facilities but this is place is close to my mom who can visit her on a daily basis if she needed to. Luckily she had good investments and inherited money from the passing of her husband. Otherwise, I don't know how many can afford life in the golden years.
If renting is cheaper than buying I think it makes perfect sense to go renting ownership is overrated nothing is "really" yours because you don't get to take it to your grave but you also want to remember that your income may diminish or you may hit a time where you might not be able to work someday in that sense owning your own home can make a huge difference but I guess that only works if you paid for it in cash mortgage is a rip off no matter how you look at it.
Thank you for your transparency although I’m not a homeowner I live in an expensive city so hard to buy, but il be moving to a cheaper city renting a 3 bed house for half the price of my current 2 bed flat. I always thought if I buy a house I don’t want it to be a Burden and end up resenting buying a home or feeling stuck, I love to travel and the type of lifestyle I want to live means more to me then buying a house and struggling to keep up.
DON’T SELL YOUR HOMES!! Rent them out until you want to move back in or buy another one!! Yes homeownership is high but so is spending all your money on rent! Renting is like throwing water into a bucket with a hole at the bottom. Owning a home is like throwing water into that same bucket but the hole gets smaller & smaller until you have a leak-free bucket. Having a house you own makes it so you have an asset that can pay for your lifestyle in the future, for your future kids, etc.
@@sp500-steph7 An index fund or REIT does not give you a return anywhere close to owning your own real estate. That’s why so many companies like Zillow, Blackrock, Offerpad, etc. are spending billions of dollars buying real estate AND renting it out. Also, you do realize REITs are companies that invest directly into income-producing properties (like single family homes, condos, townhomes, etc.)? So if investment trusts, Zillow, Blackrock and others are investing billions of dollars into owning residential real estate, doesn’t it make sense that every day Americans should be too? The less amount of every day folks buying homes, the more these companies will buy them & rent them out. These companies don’t care and will raise your rent every 12 months, which is why rent is so high now. Where’s the freedom in that? You aren’t buying freedom when you rent. You’re buying time until your landlord increases your rent or sells the home from up under you. When you own with a fixed rate, no landlord or lender can increase your housing expenses.
Gosh rental stress I'm not sure is better! We have moved 4 times in 4 years because landlords haven't renewed our lease. We have 6 kids. Moving is hard. Desperately trying to buy when the market is going crazy just to stop moving
But you had 6 kids first the question needs to be asked why have so many kids but no secure housing ...that's a lot of the issue here ...govt FTB and rent assistance is what people are relying on instead of housing security first!
@ykook7000 it would be so Amazing to get FTB and rent assistance. Not something my professional partner and I have had in years. We are professionals with a decent income. Divorce, blended families life gets in the way. You've a very narrow view on what families should be
I don't understand. In Australia, do you pay the new interest rate even after you buy? In the US, unless you get a variable rate (which is dumb) you lock in a rate and that's what you pay until it's paid off.
I don't think all countries offer long term fixed rates. In my country (South Africa) you can only fix your rate for 2 or 5 years at a time. Then your rate gets re-evaluated again if you want to fix again.
I’d say that you bought too much house, like you admit yourself! People do it all the time, they move house because they’re buying, not because they need to move house. I honestly believe home buying can crush the potential for a great life lived in so many people. We use so much mental effort through the saving to buy a home process that once we’ve done it we have no more mental currency in the bank left to spend on our desires, our dreams do travel, start a business or change career. We then just sit and live a mediocre life but “at least we own our home!”. No, you settled. Do what’s right for you and no one else! I hadn’t seen your channel before.. subscribed!
Really interesting video, Angie. Thanks for sharing. It’s great that you are so honest with each other about the pressures you are feeling and about what your life goals are. I also changed from more permanent teaching roles to CRT for many years, and absolutely loved it too. I agree completely with your comments about being able to get back to the joy of teaching, without all of the other red-tape and all of the stresses which suck the joy out of teaching. The flexibility is great, as is the relationships with so many different students in different schools. Good on you both for being so clear about what you want such as travel, less stress and obligation and flexibility (and don’t want) in your lives.
much respect for talking about this important topic, especially whilst experiencing it first hand, most struggle in silence and awareness causes the next cohort to not know the risks of property ownership because of this
Kids don’t care if their house is big or small. It’s the time spent with the parents that matters. I’ve never understood why people buy a big house, having children, then, put the children in daycare so the mother has to work too. Why have children if you let someone else raise them? Children would rather be in a small house with their mother than daycare. The big house empty all day long, while family is out working or in daycare. Yep, I’m against having both parents work outside the home. Maybe find a job that you can work at home? Children grow up sooo fast!
We just wanted to say a HUGE thank you to all your comments and support ❤. We know it is not an easy decision. Just to clarify, if we were to sell we aren’t totally off the idea of buying again. We would perhaps buy a much smaller or more affordable home. At this point in our lives we just have so many things we want to do and don’t want to be held back by our house. Thanks, A & L
You are very thoughtful. Keep on doing your personal assessment. No one likes being burdened by mortgage. Would you consider renting it out so that you could keep the home? Just a thing to think about.
this is such a hard pill to swallow. Being honest about regretting buying a place you cant sufficiently afford, admitting the lifestyle creep, admitting that you made a big mistake, makes me understand you more and will take all these into consideration when I buy my own home in the future. Thank you! I know this video gave you huge relief by just letting it out and being honest talking about it cos I can really feel the burden that's weighing you down. Hope it ends well! :)
Many will often do things too fast. They want their dream house as their first house, but if we’re being honest here, only the super rich can do it in one simple step. For us normal people, we need to do it in steps. To be comfortable with the size, enjoy the neighborhood (where it is located and such so you’re not only have to rely on a car/cars. When it should be done from one’s actual finances and not what the eyes desires. Many will not give wiggle room for inflation and interest rate, if someone needs to cut back at work due to medical reasons for a while or whatever might come up. To get a house where everything feels tight financially is such a massive risk, and many will notice that they wanted too mich too soon. Before people did the climb within the real estate market, where they settled with something smaller and allowed it to take some years where they lived and then sold, got something a bit bigger and eventually they managed to get to the level where they actually found their dream home and could make an investment that didn’t make everything feel scary and tough financially. This house ngl. is way too nice for people with semi good economy. Patience is so important when dealing with finances and investments like these! I hope things works out, but sadly knowledge is something you can’t skip and a bank who wants to make money aren’t interested in if people will ruin their finsnces with an investment like this. Too many don’t educate themselves properly and dive in and gets a cold ”surprise” when they land in the water. After all must we have homes with kitchens where we can host 15 people without anyone feeling crowded, when we don’t have a multi millionaire budget unless the bank will help and push in a few mill?! No need to impress ousiders either by showing off a bigger real estate! It’s really no shame in saying ”I can’t afford this we need to look at real estate at our actual level”.
Thank you for your honesty. I sometimes regret not buying my dream home . Instead I went with a townhome that was 300k. I ended up paying off the townhome in 5 years . If I would of bought a house I'm not sure if I could of paid it off . The crazy part is my business took a 70% dive after I paid off the townhouse . So it's a good thing I didn't buy a bigger home because I probably would be stress out with the maintenance and payment. Also, at this stage of my life, I'm so sick and tired of working and hustling. I just want to travel and enjoy my daughter's last few years being with me.
1000% logic!!!!!
Irrelevant. But what’s, “Would of?” Please say, “Would HAVE! Fact is we can’t escape capitalism, trust me.
I'm an American and I live in in a modest home in the US. We could probably afford something nicer, but I really like being stress free. The US system of fixed 30-year mortgage rates is a real blessing.
This is the key…buy within your means.
30-year mortgages are why houses are so expensive. Mortgages create artificial demand.
I think lots of couples are delaying having children simply because of the high cost of living.
Completely agree. I suspect home ownership is normally or historically the first step in starting a family. People want secure accommodation before starting a family. The old trend was buy a first home in your early 20's, get married, but a slightly bigger home for young kids, upgrade to something a bit bigger (forever home) when the kids get to their teens, then down size when you get to your 60's or 70's. People working in retail earning $30K and homes were $80k-$90k in mid 1990's I've heard of people back then paying off a house in 5-10 years.
No if people aren't buying a first home till your late 30's early 40's. 25-30 year mortgage. Even with 2 incomes, good luck paying off a $1mill any sooner. So worst case, buy a home when your 40 +30 years. You'll be 70 buy the time you pay off your first house.
Even if you buy a cheaper starter house, say about $400k. That's starter home not a family home for the most part. It's still going to be someone in their 30's.
I suspect that declining birthrates in almost every country is correlated to the cost of home ownership.
Yes. That's my situation
No reason to have kids in today's world, for anyone who has half a brain but sadly most humans are dumb sheep and can only follow culture
You got that damn right
I think most just don't want family life these days because years ago there was also many struggles and sacrifices. We have to choose and nothing has changed in that regard.😊
I live in the U.S. and paid off my home a couple of years ago. It isn't my dream house or dream neighborhood but I am still very happy to be free of the stress of mortgage payments. I think we all need to get back to a simpler way of living.
It seems like most countries apart from the U.S. do not have fixed interest Mortgages. I can't imagine the uncertainty.
I was thinking the same thing. Here in the US I have a fixed mortgage rate and I pay way less in a 3 bedroom starter home then rent would ever be.
I was also wondering why their interest rate went up every month. When I purchased my home in 2020 I locked into a 2.75 interest rate that can’t go up as long as I own the home and do not refinance.
In Australia we have them but usually between 1 - 5 years (and you can opt not to take out a fixed-rate loan)
Yeah I was confused about this. We're locked in at 3% until we refinance or sell. I wouldn't be able to handle that uncertainty! Part of the lure for me was the relative stability of the monthly payments.
In France I’d say 99% of mortgages have fixed interest rates. Iceland have a huge issue with these variable interest rates. I was able to get a mortgage at 1.36% over 25 years, it was right at the begining of the pandemic, I’m so glad I bought when I did, everything has gone up so much since !
Interesting. I guess as an American, we have never really prioritized vacations or travel over home ownership. I’m in my 50’s and vacations for my parents and myself has always been only something you could do if you had money left over after paying all your bills and then it might only be going a couple states away or a road trip or two. International travel is a luxury that few can afford. I have noticed more young people prioritizing this over homes as I guess homes feel out of reach for them. We also tend to mostly get fixed rate mortgages here in the states or get cheaper starter homes or fixer uppers and then sell up as you get older. But home ownership is harder and harder for young people to achieve because home prices are rising so high compared to salaries.
Agree! Just different interests/mindset
I agree with your points, especially on travel. But one thing is that "starter homes" don't exist in many places anymore (in the U.S). If you're buying an older home, it will come with many problems that will have to be paid for out-of-pocket, lessening the advantage of buying a cheaper, old home. (My home cost an extra $27k for a bad roof and bathroom with a leak that forced a remodel.) Cheaper homes are on the outskirts of cities and that will add a cost for people that have to commute, not the mention time lost daily. At best, I've seen starter homes (old, two bedrooms) in my area going for about $50K less, but that's not even worth it if the smaller space is going to make life harder. And it's not like many people can just upgrade when they want to have kids. There's a big financial loss when selling a home (in most markets) due to all the commission fees and taxes. So you're kind of forced to buy a home you believe you can tolerate for at least 10 years.
Rent is going up also as the landlords have to pay mortgage, if you give it up you will pay out to gain nothing
Just wanted to write with a big dose of solidarity! We bought our house 18 months ago and the interest rates are forcing our hands now. We make really good money but it isn’t enough to get through. We can barely travel or do anything. Going to try to sell, albeit for a potentially significant loss. Solidarity and hugs and thank you for this really powerful video. The honesty and directness is refreshing!!
Thank you for sharing your story as I think many people will relate to it. I think you are very correct in realizing that having a big mortgage comes with huge restrictions, responsibility & drawbacks. Unfortunately life is about choices & they all have pros & cons. Personally I started with a small house, & paid it down before repeating & moving up a bit. We've done this 4 times, and also own our nice home outright plus another 11 properties with quite low debt & raised 4 children. That was my priority over travel (I'm also scared of flying - but more scared of being poor). If you can be flexible about where you live & ignore what your friends are doing...buying something where the rent covers your costs could set you free for travel. And having children! PS they don't mind sharing rooms or going to government schools.
I'm now 60, financially free & you don't feel old if you keep fit.
Xxx
I wish you well.
Been there; done that. We sold the house we regretted buying in under a year's time and are happily renting a new 2 bedroom, 2 1/2 bathroom townhome we so happily call home. We are comfortable and have no desire to buy right now. Hope you both are seeking Divine guidance about your upcoming decision. Thank you for sharing your story! Best wishes to you!
I’m so happy you’re talking about this! Because the generation before me instilled in me “if you’re not working to own a home then what are you really doing with your life” My parents hate my decision to rent and not own. They married young and in the same year owned a home - I try to tell them my path and their path, my time and their time are and will always be different! So I’m just thrilled that you’re speaking about this topic! I am 27 and I have no fear of being 30 and not owning my own home. I like renting!
You should both be so proud of yourselves. Honest and open communication is the most important thing in any relationship, no matter what is going. I hope you can sell and get a great price for your home ❤
A London, UK resident here….I’m in my 40s and husband in his 50s, no kids or pets. Took us a year to find and purchase our first (own) home and there is nothing like closing the door and being at home. What I hear from you is that you are not ready to settle down, yet…so, get a small home and upgrade when you are more clear about your long term goals😊
No kids or pets how boring
To each their own, my point is that at such a young age you might have different priorities. The need for setting for most people comes with the age. We will need to set out priorities and be realistic at the different stages.. we always have to give something up to have another thing, there's no way to have it all at once
@@LongNguyen-ho9qfpets are great 👍 kids suck 🥊
@@SlackHoffman gotta pick up their shit either way
@@SlackHoffman Ain't that the truth.3 dogs, ZERO kids hahahaha!!
Hi Angie ! Rather than an Air B N B, have you considered making your backyard studio a permanent rental? Could help with some of the financial stress.
It's surprising to hear someone in such a similar situation as myself so far away. Me and my partner bought a condo in California (US) because of the whole "American Dream" thing and we just realized homeownership is not for us. We totally miss being renters. In the US you usually have to hold the home for 2 years for tax purposes but we will probably be selling as soon as possible. I also have a fear of flying like you. I hope everything goes well for you and your partner.
So grateful that people actually tell their stories as it is. Thank you hope you both make a right decision that works for you both.
I honestly appreciate the honesty in this video. It is refreshing and also a great example that just talking about your thoughts on the ‘norms’ can help others realise that they aren’t alone in their thoughts, struggles or issues with things we are ‘meant to do’. My Dad always used to say “Never send yourself broke for brick and mortar. You don’t need the fancy furnishings, you just need a roof over your head. Life is out there not in here (referring to the house). These words have always stuck with me. As much as I am a homebody, I have come to realise that stressing over a payment that I have in order to host a life that isn’t what I value. It isn’t the house, its the people in it. I also believe that I have no intention of spending my weekends cleaning and maintaining a house. I would rather spend it out in the park, down at the beach or on weekend getaways. That is why a smaller villa or apartment will be the choice we are going for. Thank you again for the honesty Angie. It is nice to see some real thoughts from other couples than mirror ours. 😊
Tell your dad I love his comment
@@natumanyasheilla2271 😊 I absolutely will. That will make his whole year to hear this. 💕
I'm 40ish originally from Sydney with no kids and no pets since they passed away in 2021. I can relate to a lot of the feelings you shared as I felt the same stuck feeling with our house. We both work remotely and use to travel a lot before COVID. So after our pets passed away towards the end of 2021 we felt that this was the last of what was tying us down we made the decision to sell everything and travel full time.
We practically live out of 3 suitcases and dont miss any of the stuff we use to own. It really helps you realise how un-necessary a lot of the crap you by and accumulate over the years is
We have been moving around Malaysia, Thailand, Vietnam, Japan, Korea staying as long as our tourist visas allow and generally change cities every 4 weeks. We've stayed in a mix of condos and hotels with a budget of about $50/day for accomodation. Flying around Asia is also super cheap with flights around the $50 mark.
Other than missing seeing our families regularly we love everything about our life now like not having to pay a mortgage, no utilities, no vehicle maintenance etc. The cost of living is very very cheap when you are earning AUD/USD and spending it in Asia so much so it's not even worth cooking yourself as you can eat out for about AU$10 a day. Even if you are not a public transport kind of person a Grab (uber) ride will be less than $5 one way! It's like having a chauffeur!
Am I worried about not having a home in Australia to come home for when i'm older? Nope not at all after seeing what your money can get in Asia. eg. you can get a 3 bedroom luxury condo in KL or Bangkok for less than AU$300k. Yes there are condos cheaper than that however foreigners cannot buy these.
Sorry Australia but the great Australian dream is a relic of the past, you're just being ripped off for everything in Australia be it petrol, electricity, groceries, internet etc....
Australian man going through airport turnstile sideways is going to Bangkok.
Mortgages are going up and rents are going up too. That is the dilemma most people are facing.
Yes. Exactly.
There's no option, just the less bad one
Now that I’m in my 50s, I can say that I think experiences are more important than things. If you love to travel, don’t sacrifice it for a thing, even if it’s a big thing like a house.
Interest rates rising are a biggy at the moment. I’d probably consider talking to a financial adviser. Buying and selling quickly can be expensive (as you know having done it). Renting a room or your air bnb out permanently (like tenanted) is an option for some ongoing income. If you get the right person, they may even care for your cats if you go away. All the best guys!
I was going to say the same thing, rent it out tenanted. Great idea re renter looking after the cats. Or rent the house out, and you guys rent something smaller elsewhere.
Be careful of renting in case of eviction process can take month's and lose money
I normally never comment on RUclips. However, I really feel that going to your accountant not the mortgage broker is a good idea. Renting the place out, while you rent somewhere else could be such a tax effect way to keep your property and still have your lifestyle that you wish. In the end having that house in retirement paid off by having rented it might be the answer. While you will still have costs, once you talk to an accountant you might see it could be a compromise or at least until the market goes back up.
I felt that too. Of course people in the industry will likely encourage them to sell as it means closing costs to the agents.
Get some other mug to buy you a house 🤔
Also as a renter you have to be prepared to move whenever the landlord wants. Plus costs of moving, seeking new property etc etc.
Exactly, so many people made the mistake of over extending themselves, financial markets are cyclic, people don’t look at history. Selling your home would be the smartest financial move for many now.
We started to build our house at the same time when Covid pandemic started. We decided to build by ourselves as many as possible to save money. My husband spent thousands of hours building our house, other a lot of hours by studying the appropriate processes. We have two children,now aged 8 and 13. It was the hardest time of my life, because we live 500km far away from whole family. But finaly we did it, we are living in the house and love it. It was tough, but totally worth it. We have about 1/3 mortgage as it is the actual hiuse price,we save so much money as possible. Moreover, we have fixation of intetest here in Czech Republic, so we know that for next 5 years we will pay the same amount. What will be after that, who knows. But we continue with savings to pay bacj as much money as possible before intetest will change.
Thank you for being so real and honest, the cost of living is so so hard
Australia is one of the most expensive places to live in the world. Ive met so many tourists who cant believe how expensive our food is etc. So in the future i believe many Aussies wont be owning homes, it will be just too hard! Im no financial expert but I do believe in the mantra you only live once, take opportunities while you can. My father paid off his mortgage and sadly passed only 4 years into his retirement and my mother paid off her home in her 60s and is glad to own a home but constantly says she missed out on a lot in her younger years as all her money just went to the house.
Love that you are talking about your Homeownership experience. People need to hear more about other people's Homeownership experience. Being a Realtor in Atlanta, GA market in the US. Prices are continuing to raise, outside of interest rates. And, I am advising clients to wait to buy, unless they feel they can sustain their lifestyle paying a mortgage. At the moment, even though rents have risen, it is still cheaper than mortgages in some cities and states. I don't want no one I'm working with to go underwater or foreclosure on their house. And now some people are illiquid with their house. Nonetheless, love what you are talking about in this video. Have a wonderful day!
Thanks for this video. I'm currently in the process of saving for my first home, I have just shy of a 5% deposit saved which has taken me two years and I just feel like its becoming more unachievable every day, but I feel like I have to buy a home and I can't "start my life" until I own a home. I'm seriously thinking about just investing the money instead and putting my fortnightly savings towards shares and this video has helped me see how overrated owning a home is for the sake of owning a home.
Something that a lot of people don’t factor into the price of owning your own home are all the insurances, rates, maintenance costs, body corporate/HOA fees (in some cases) and budgeting for the fact that interest rates can dramatically increase - just something to think about too. While renting can be less stable depending on where you live, investing could be a really great option and make more financial sense in the long run. Good luck with whatever you decide to do.
Yea I'm glad you came to your own conclusions. You can't save your way to a down payment unfortunately. Either invest the money till you reach a certain goal and sell those shares or just forget about it
We are in the same position! We built at a budget we could comfortably afford, moved in by 2021 Dec, then had a baby and now I’m not working full time and we never thought the interest rates would go up this much! We’re looking at selling too. Breaks our hearts but we don’t feel it’s worth working just to pay the mortgage and have nothing left for other things that do matter to us.
We have the exact same story. We purchased off the plan in 2020, moved in sept 2021 and had our first baby down to 1 income for now. Thinking we have to sell. It breaks our hearts ☹️
@@Jessica-bv3gy so stressful isn’t it! And the thought of moving with a baby too 🙈🙈 Not cool.
@@heidialiceinwonderland Definitely. And going through inspections/open homes with a baby 🥴 best of luck to you, whatever you decide to do x
@@Jessica-bv3gy same to you x things always work out ☺️
Won't renting pretty much be just as high though?
Just stumbled across this video and really appreciate the honesty.
I’m single, in my 30s, in NZ, and bought my first (small) home about 6 months before peak prices here. My (floating) interest rate has increased 3 times in 8 months. Cost of living increases are tough! My saving grace is I borrowed less than I was offered and put down a 30% deposit.
Aussie and NZ are the same in which the ‘dream’ is to be a home owner. Here, my rent would be slightly more than the mortgage (but then I have rates, insurance etc on top of that) but at this stage in life and after covid lockdowns etc it was more important for me to have stability in my living situation.
It’s not my dream home but I’m very happy and it’s a start.
Thanks for the video and good luck for whatever you decide to do.
Amazing video and one I think a lot of people can relate to.
Just if I may, a word about the kids thing. Years ago, my husband and I were struggling with our mortgage and renovation/ maintenance issues - despite having "good jobs" which often demanded long hours of us. My workmate, whom I'd befriended, when I mentioned the kids thing, asked me candidly, Can you afford to do that?
At the time I thought it was a bit rude, but she had a point. You have to REALLY want to be a parent for it to be in any way worthwhile, not yeah, maybe so-so. Otherwise your children will pick up on your resentment and frustration cos life sure ain't easy.
It's perfect okay to not have kids. Just saying.
when my husband and I were younger we were told to be successful in life you have to buy a home. but bricks and mortar come at a cost. we decided the price we were paying was greater than any monetary value we could think of. our home was costing us our marriage, our family and our lifestyle because we had to increase the amount of work we were doing just to try and make end meet. we were missing out on life and missing each other. it was also affecting our mental and physical health. We have since sold our orignal home and down graded, and We couldn't be happier. We work less, see each other more and our children get to see their parents doing more than just working. We can now afford to go on a family holiday. because we chose family over a house.
While it seems a long way off, if you have your own house when you retire, it is a great position to be in. Through work I deal with a lot of older people who are struggling to afford housing while living on a limited fixed income.
A valid point. However, on the flip side, I have known of several retired/ pensioner home owners who really struggle to meet the costs of home ownership and maintenance, even with a fully paid off mortgage.
They would be investing the savings they'd make due to renting so over 30 years they'd have enough to buy a small 2 bed house as retirees if they wanted to
@@roxydee1452then these people need to downsize & buy a smaller home with the proceeds from the sell of their current home. Many older people with fully paid off mortgages have homes that are too big anyways.
i.e. sell their $1M home and buy one all cash for $500k.
When they retire they might need to live in a nursing home...you just do not know how their health will be
@@linapesz313 they could keep the home & rent it out. The proceeds from the rent can pay for the nursing home. Problem solved.
Thank you for being so candid. So many people are private and don't divulge anything, and just act like their lives are perfect. As a single person and renting, it's helpful to see how things can be on the other side. I really appreciate the honesty! By the way, what does Louis do for work and how did you meet? I need to find a highly paid partner haha (kidding) Xx
He owns a website publishing company. We actually met at work; we both used to be valets at a 5-star hotel in Melbourne. I've known him for 8 years, and we have been together for 5.5 years.
@@angiedixon again thank you for the honesty :) And that's so lovely 💗
Great insights. Thanks for sharing. Life’s too short to live it for someone else’s dream. Whether it be travelling or owning a home. Your happiness is what’s most important ☺️
Angie, you may be paying 2.5 times the purchase price of the house over 30 years (worst case scenario as you may pay it off far sooner), but what you don’t realise is that the house will probably be worth around 5-6 times as much by then. The costs associated with selling and buying back in (agent fees, legal fees, stamp duty) will absolutely set you back many years which you will regret in future.
There's no guarantee the property will be worth 5-6 times the value in 30 years time. Consider what that price tag will actually be and consider how the upcoming generations will ever afford homes that cost 5-6 times what they do now. Please do not wish this on young people.
Disagree, she’s over extended, she’s feeling the heat, she doesn’t want it as a forever home, travel is a main priority, cats are an issue, her mortgage is huge, waste of current money, she’s young, current top financial will tell you, break your pride, sell your home, rent for a while until the market calms. You’re welcome.
@tamarawest6203 💯 Agree! I'm worried for my children's future and their security. 🥺
I’m selling my house and I’m going to buy land that my daughter and I can both build small homes on and make it our little family compound. I worry that she will never get to be a homeowner otherwise and I don’t want her to have to wait for me to die to inherit my home, I’d rather her get into a home now in her early 30’s. Then when I do die, she can then rent out my home for income and she could always add on bedrooms if she needs more room.
@@TheRealdalit’s an amazing opportunity. We bought 6.5 acres and have two houses on it. Our kids will be fine and when we kick off they have many options. Land is an incredible investment.
Me and my husband currently have a 5 year fixed mortgage that comes up for renewal next summer, with interest rates continuing to rise I have huge anxiety if we will be able to afford our house. We have been here almost 10 years. Downsizing is unfortunately not really an option with the reality market we live in 😢. Anything smaller is close to what we paid for our current house almost 10 years ago. There is a real lack of affordable housing where we live in Canada and the rent rates are crazy high
It looks hard now, but mortgage stays the same (and hopefully lower if rates go down again) while house prices/rents increase.
Also we're fine with ours - don't buy too much above your income. Our mortgage is only 2x our income.
Honest truth / I can summarise that since the beginning, everything is based on “want” instead of “need”.
Key points why? At one point, you want the house.
2. Want a bigger house maybe for the family and kids.
3. Also want to travel ? For a month?
4. Want to renovate the house for potential tenant?
5. Selling the house again?
6. Potential to stop working and be a stay home mum.
There are so many things going on that you want. Prioritise what is needed.
All good points! Just don’t forget that every time you pay your mortgage a significant amount of that money is still yours, it just changes form into an appreciating asset.
Thank you this hits really close to home, all of it. We’re in the ‘covid’ 2 bed unit phase and have been seriously considering selling and buying a house with land for lots of the same reasons you guys had as well in addition to others (unit disputes, strata issues etc). We still got 5 months left of the low fixed rates so for now just taking advantage of that before committing. It doesn’t help that house prices growth typically outpace units so feels like not making the leap is putting us behind more and more
Thanks Angie to upload this and telling us very honest story of what you guys are facing atm. I was kinda had the similar thought of what you are which renting the place and instead of paying all the cost like rates, interest, Insurance etc of money towards to my future saving or for my holiday and I was doing that for last 3yrs. Then now I'm facing to look for somewhere to stay because my unit owner didn't want to sign for lease due to she needs to use the unit for herself to live. Then I found the new unit to move in but the contract new owner offers only 6month... Im a lot older than you and now I think about how many more yrs I can be in the good health to keep working and so. Also feels like has to face to the end of lease cleaning all the time. Since u guys enjoy move around is good in the way esp no kids yet so a little easier to do so but as you already experienced with your lovely two cats, having more family member is not easy to do many things also. There is no right answer until you yourself find what the best and feel comfortable. I really hope you and Louis find the best idea and it will work on you soon !
Why does the mortgage change monthly? In the USA mortgages only change at worst once a year if someone has an ARM.
Hi Angie, I love watching your videos. I can only imagine how hard this was to film and put out into the world - and without a tear! Girl, you should be so proud of yourself. It takes a lot of self reflection and courage to realise maybe the great Australian dream isn’t for everyone. It’s so easy to get carried away. Can relate on so many levels! Good luck on your journey moving forward. I’m sure bigger and better things are in store for you both xx
Thanks Angie for being so pure & honest, so glad you & lewis have talked, he would be feeling so much better with your support, don't be stuck there & keep suffering, let some one else enjoy the property way too big for you both, it's only bricks & mortar. Just follow your dreams & both travel & be happy. 👍🤗⭐💐🌠🙏
Angie, this was a great video. Thanks for sharing and I admire the courage you had to come out about this, I don't think I could of done it if I was in your position. As you have shared this with us I will share my story with you in the hope it helps you make a decision: I am around your age, maybe a couple of years older. I own my home outright in a nice suburb in a capital city. It's plenty big enough, nothing special, but I now pay less than 5% of my take home income on housing (and it's just me paying for it). When I purchased, I didn't buy the place I wanted but I bought one that I could easily afford and pay off quick. I had a plan (a cost benefit analysis you could call it) to ensure that I only purchased something that was as big as I needed, and I only bought it when I had enough saved that it was cheaper to buy and up-keep than rent. As you now well know / are finding out, the bigger house the bigger the upkeep (and you haven't even had anything go wrong with the house yet). By purchasing only what I need has bought me a tremendous amount of freedom where I now live my life how I want. Since paying off my place I put money aside for spending now (I buy what I want when I want), invest some money for cashflow in the medium term and max out my concessional super contributions for retirement when I am older or if I choose to stop working early, I'll still have more than most for retirement. Buying expensive Australian property is good if you have lots of surplus money and need a safe place to store it (like wealthy foreign investors who can't trust their governments and banks or if you have a big balance in your self-managed superannuation account) otherwise don't fall for the great Australian property scam its designed to keep you poor and enslaved. Normal Australians cant even come close to competing with a lot of foreign investors who have earnt the money internationally (where more corruption is allowed, and lower taxes are paid). Australian housing is not how it was when our parents were young adults, and we need to understand this. Life is too short to waste your energy on paying interest to banks, extra taxes to the government and overpriced repairs to tradesman and Bunnings. I hope my experience helps you with your decision as it seems you guys could easily be in my position and would be much happier than where you are currently. Remember relationships and your happiness are more important than the size of the house you live in.
Such a fantastic video and well done to you guys! I feel like our stories nearly mirrored each other, as we bought our first home January 2020. We do love our home, but it’s not in the exact area we really want, so was looking at/considering moving up the ladder to the nicer area last year/beginning of this year.
We ended up deciding against it because one thing we really appreciate is the affordability of our home. We did extend our home which helped big time and still have potential to make our home even bigger and nicer to live in.
But yeah all of this to say we very nearly did bite off more than we could chew. Life lessons can be hard but they always make you a better, more well-rounded person. So you will get there. Thanks for the transparency ❤
I can totally appreciate how you're feeling, good on Lewis for sharing his worries, big step. Have you considered buying a 2 bedroom unit again. I only say that because you may find the rental payments may come out slightly less than a smaller mortgage & you'll still have the investment over a longer period of time when your life may change if you have children. As you've ust learnt how if feels to have a large mortagage you may find the instability of renting may become overwhelming in a couple of years. I've been a renter with a child & I move about 10 times in his schooling years. I've now bought & feel safe & secure even though the mortgage is high, I see that long term security.
We would in the future look at another 2 bedroom unit for sure! Especially if it was one as good as our first home. If we could buy that back we 100% would.
Great video reminds me of a class I took in university in the US. Family financial management. I was about 20 years old and we had a class debate about home ownership vs home rental. We all agreed that ownership only makes sense when youre ready to settle down in one locaiion for 5-7 years or more. Also where you have stability with your career and not planning to move or relocate soon. If you are still mobile and growing in your career its probably best to rent so that youre free to relocate on a whim if better job prospects present themselves. Airbnb apart from needing cleans introduces a new visitor to your home and reduces your freedom and privacy. Maybe in future you can save to build a house without a mortgage.
Truly appreciate your honesty, it’s very encouraging and educational.
Mortgage stress is real! If you guys plan on having kids and pets it might be good to have stability in owning a home, just food for thought. Priorities also change a lot when kids come too- i was very much like you and love love loved travel too but now with kids i am content not travelling until later on, and i never thought that that would ever be the case. But then again you could always sell now and buy a smaller place later on if you wanted to travel now.
I’m a Mortgage Broker in Melbourne and thanks for being so brave to tell YOUR STORY. It’s definitely taboo to talk about finances in an open forum. It’s vital for anyone who is considering taking on a mortgage to ensure do a solid post settlement household budget and also take into account higher mortgage payments. Current assessments for mortgage applications are buffered by 3% rate increases.
Principal reductions are known as lump sums. That reduces the loan repayments vs placing the cash in an offset account or redraw it only reduces your interest bill However, loan repayments remain the same. That’s the difference between lump sum reduction vs placing funds in your offset / redraw 👍
FYI:There’s interest only loans with 100% offset account available as a product features.
I am so glad I bought alone! I got a 2 bedroom place in May in Melbourne and it’s a relief to know I’m not paying more then I was before in rent. it’s always important to fight lifestyle, inflation and live below your means.
I was just recommended this video randomly and I like seeing people living a realistic life. I think selling makes sense but I can imagine having to let go of a unique house you love so much. But you are lucky to have a partner that can help you live in beautiful spaces, I’m glad you pointed out you couldn’t afford it by yourself. It’s just me and I wish I had a husband to help me financially. There is no worse stress than financial stress. You don’t need it.
It’s not too hard to get a good husband. You just have to work on being a good person. Be nice, learn to cook, go to church, get your hair done and look your best. I’m obese but I have a good husband. He’s a great provider and he’s very fit. I think he likes me because I’m upbeat and kind, and reliable. I work hard making sure he’s happy and he works hard making sure he provides for me. Hope this helps ❤
$600 for rent is a dream. We pay $1750 for ours.
Mortgage rates are not the only thing rising. Food and petrol prices have also risen over the past few months.
Thank you Angie! Doesn’t matter what you talk about you are always honest. I appreciate you for that. XX
Thank you for sharing! So honest and thoughtful, totally understand and agree with what you’ve said in this video. It’s so sad that the difference between renting and owning has stretched so far out from each other it does make it hard to own a home and travel at the same time without being hit hard 😔 all the best for the two of you I’m sure you guys will make the best decision for YOU ❤❤
Keeping the house makes sense for your retirement. Traveling is money down the drain. It’s best to think about the distant future. Having a home that’s paid for means you won’t have to work when you’re 60+ years old. Stability and a shelter are so important.
Do you have an adjustable rate mortgage and not a fixed rate mortgage? Is that why the rate keeps changing? Is there a way to refinance to a fixed low rate mortgage when the rates go down?
That first house was so pretty! I love how you decorated it.
You make a lot of good points. I wish you all the best!
Oh and…live Below your means. Always.
Well done for not getting caught up in the sunk cost fallacy mindset with your consideration in all of this. Thank you for making this video, its nice to hear a honest perspective from someone a similar age to myself when a lot of the views about home ownership are structured from older generations who experienced a completely different set of circumstances. What makes this process more difficult (I find) is the disconnect and the assumption that its '"not that hard" by those who's home cost was not nearly as expensive when compared to their annual income. I love that you are considering what is a good life for you and making that your focus. I'm going to take a leaf out of your book. Its interesting that in one generation alone we might see a drastic shift of home ownership like never before. It questions a lot surrounding generational ethics, especially when it comes to older demographics using smaller homes as investment properties to fund retirement, while young families can not afford to experience the same lifestyle their parents grew up which enabled them to have the funds to make such investments. Not judging the older generation for taking advantage of their circumstance, however and understanding of privilege seems to be important to make ethical decisions and laws surrounding this. Food for thought.
I think you should renovate the studio apartment and move into it. You can live a tiny house lifestyle while renting out the main house. This would generate rental income and allow you to pay down the mortgage.
Hey there, at the end of the day do what you need to do... but could you live in the studio and rent out the house?
The rental market is crazy. I would hate to be a renter again. I would recommend going to a couple of rental open homes, it is a huge eye-opener.
If you can save the house by living in the studio for a while, you'd have your home base and hopefully be able to travel more and ride out this interest hike and hopefully not make any loss.
I was thinking the same! But remember, their first 2 bedroom house was "too small" for them..🤷🏼♀️
If you have a mortgage, you did not buy a house. Why do so many lie and say they bought a house when they really didn’t?
I think it's just the universal term. We say mortgage free when there is not money left to be paid.
Great video as always! I feel you 110%. It’s a seller market. I’d exit and take the hit immediately. Invest the balance in a fix term deposit for 6 months and rent a small place to relax and save some money while looking for a small townhouse in a 10-20km range from the CBD. At least you may get rid of the mortgage for your new home. The interest rate will keep increasing for the next 12 months And Victoria is in dept so there will be extra taxes and rates expected to be paid by owners. However, DO NOT sell a house unless you buy another. Selling a home and staying at a rental home and travelling would be the biggest mistake you make.All the best for both of you 🤞🏻
Rent is cheaper NOW but how do you know it’s going to stay that way ? Can you rent part of your home out by building an in law suite ?
I relate to this so much in Canada and doing it single is a lot more than I thought.
5k a month that’s insane! Know when to hold ‘em, know when to fold them, know when to walk away....
My partner and I are paying $5000k a month on our mortgage repayments also (principle and interest). It was $3200 last April when we got our loan but with all the interest rate rises we are now at $5,100 per month. Thankfully we have a bit of $ on our offset account and both make a comfortable wage. :(
Sorry if this is an ignorant question, but why is your interest rate changing every month? Can you not get fixed rate mortgages in Australia? Property taxes are an issue where I am but still the change in the actual mortgage payment is only once a year.
You think renting is better?! 180 applications for one home in 2 weeks. X1 application can take 3 hours to complete, one application required 9 references. One of my previous rental agencies in London said they were unhappy with the amount of references requested. You live somewhere terrified about not being renewed but also terrified that your rent will increase- because it will. It’s not easy to rent at all. It’s a nightmare.
I'm speaking specifically about my situation. Yes it is easier for us to get a rental as there is quite a bit of supply in my area. We are fortunate enough that our budget is not extremely fixed, if we needed to increase our budget we can. I think buying a house is a great option for us as an investment property, not to live in in this stage. Buy where you can afford and rent where you want to live.
You are young, live the life you really want. Take it as a learning curve and have no regrets.
You're great. Thanks for the new video. I'm glad you talked openly about things with Lewis. Good luck with whatever decision you guys come up with. Looking forward to the next video!
I hear you, I’ve had all these thoughts too. We have a small mortgage in comparison, very small 3 bed home 1 ba in a semi-rural area. Every increase adds $30-40, but it’s increased by almost $800 a month in a year. I can imagine in comparison with a larger mortgage how much stress it would add. Terrible for the everyday Aussie, even those privileged enough to have own/ed a home. 🙃
I'm in the US and we were sold that 'pie in the sky' dream. I owned two homes over the years and moved to various locations due to my employer and the stress of owning was overwhelming. We decided to never buy again and we have larger emergency funds and our investment portfolio has increased significantly. We are much more financially secure and financially stress free.
Well I am in my 60s, and let me say, you will never be happy in a house where you have to work in a job you don’t like, in order to pay for a house you can’t afford to furnish, all the while stuck there because you can’t afford to travel. I would guess you don’t even use half the house you’re paying all that money for. Honestly life is too short. Get out there and follow your dreams, there’ll be plenty of houses left when you’re ready to buy again.
6:36 no, its not privileged. This is spot on for workers from home, office is next door to bedroom and it does feel a bit claustrophobic. Its that energy, thats why I started to hide my laptop and monitor away to kind of feel its home now
This is good story & example of being house poor. Living above your means and lifestyle creep, no options to do anything...Basically this lady is bound to debt & will never have financialfreedom. I keep thinking of all the money she could be investing, traveling, option to not work etc!!! hard to live below your means, but this is what happens when people HAVE to have the large house. High possibility we're going into recession, being in debt is going to make it hard for this woman
Sounds like you have pretty much decided. Good luck but try not to rush such a big decision. I completely understand mortgage stress and financial stress. It is hard!! I appreciate your honesty and sharing that not all RUclipsrs have the lavish lifestyle. Times are tough. Is there a compromise of buying something smaller again? You would be surprised that you can live in average size homes with kids. I'm a single mum with 2 kids. Average 3 bedroom house, no second living or ensuite. I would love an ensuite but can't be helped. I get that having your own home is the Aussie dream and not for everyone but the idea of paying rent in retirement doesn't appeal to me and the insecurities of renting and having to move unexpectedly worries me. I always said teachers wear so many hats with having to deal with parents etc. Would be a challenging job.
Could you rent the studio out as a permanent granny flat? That way it’s regular income and you don’t need to clean like you would if you air bnb it. You might even be be able to do short term leases on your home when you travel
We could but we honestly wouldn’t get enough per week to make it worth while. We’re also super private so knowing there is someone there constantly probably wouldn’t make us feel comfortable
@@angiedixon Just hold on!! You can do it! A studio granny flat is a worthwhile investment especially when thinking long term. You could get approx. $1500 per month, saving you 30% off your mortgage!! Just add some fencing/landscaping/side access for privacy - in Sydney this is very common and has become the norm, Melbourne is also closely behind. You also only need to do this for max 12-15months, everyone is struggling and cutting back - interest rates will come down, and then you can refinance. In the future, your husband can use it as a home office and your children as a 'teenage retreat'.
If that's not an option. Turn your home into an investment property and rent a 2-bed apartment. Switch the loan to interest only which will bring down the repayments and enjoy negative gearing benefits. I am doing this currently, I pay about $200 per week out of my pocket to hold the property (including all expenses) and receive a lovely 6k per year back in my tax return which I use for travelling.
Your property (I'm assuming in Melbourne/Victoria) will easily double in value within the next 7-10 years. There will be downs and ups in between, but definitely still worth while holding. All the best!
One thing for sure, make a plan a stick with it.
Renting is no fun at all.
Trust that.
Thank you for your honest and thoughtful video. It is fantastic that you and your partner are communicating your needs and feelings together. Prioritising both of your needs, then creating a life together around that sounds like an excellent plan. Onwards and upwards!
It’s a catch 22 - for now renting would be fine but as you get older and potentially have children there is no security in the rental market. It’s difficult to find rentals that allow pets, rental inspections 12 weekly and you’re really at the mercy of landlord. But I do agree it is far cheaper and that’s why I am still renting. It’s just when you get to retirement age and need to go into an aged care facility you have to leverage your assets to get a place/pay for cost of care. Most people that require placement own their homes and that funds their care in the final years of their life, that’s just something to consider for way in the future.
This! My nana (95 yo) has moved into an aged care home recently and let me tell you it's not cheap. She essentially had to buy the unit outright ($600,000 approx) plus pay daily maintance and services costs. This is a TRI-Care Facitlity here in the north side of Brisbane. There are cheaper aged care facilities but this is place is close to my mom who can visit her on a daily basis if she needed to. Luckily she had good investments and inherited money from the passing of her husband. Otherwise, I don't know how many can afford life in the golden years.
There is so much more to life than being in a mortgage prison. Do what makes you happy.
If renting is cheaper than buying I think it makes perfect sense to go renting ownership is overrated nothing is "really" yours because you don't get to take it to your grave but you also want to remember that your income may diminish or you may hit a time where you might not be able to work someday in that sense owning your own home can make a huge difference but I guess that only works if you paid for it in cash mortgage is a rip off no matter how you look at it.
Want>need=regrets. Want
Thank you for your transparency although I’m not a homeowner I live in an expensive city so hard to buy, but il be moving to a cheaper city renting a 3 bed house for half the price of my current 2 bed flat. I always thought if I buy a house I don’t want it to be a Burden and end up resenting buying a home or feeling stuck, I love to travel and the type of lifestyle I want to live means more to me then buying a house and struggling to keep up.
Thank you for being honest. It really is expensive in Australia at the moment. I hope everything will get better soon.
Interest rates aren't locked??? In Australia ??? In the USA we have a 30 year....Taxes and insurance are our variable...good luck ✌🏿🏕🇺🇲
DON’T SELL YOUR HOMES!! Rent them out until you want to move back in or buy another one!! Yes homeownership is high but so is spending all your money on rent! Renting is like throwing water into a bucket with a hole at the bottom. Owning a home is like throwing water into that same bucket but the hole gets smaller & smaller until you have a leak-free bucket. Having a house you own makes it so you have an asset that can pay for your lifestyle in the future, for your future kids, etc.
uhm wrong. you are literally buying freedom and with the rest of the money invest it in an index fund or REIT if you wish to stay within real estate.
@@sp500-steph7 An index fund or REIT does not give you a return anywhere close to owning your own real estate. That’s why so many companies like Zillow, Blackrock, Offerpad, etc. are spending billions of dollars buying real estate AND renting it out. Also, you do realize REITs are companies that invest directly into income-producing properties (like single family homes, condos, townhomes, etc.)?
So if investment trusts, Zillow, Blackrock and others are investing billions of dollars into owning residential real estate, doesn’t it make sense that every day Americans should be too?
The less amount of every day folks buying homes, the more these companies will buy them & rent them out. These companies don’t care and will raise your rent every 12 months, which is why rent is so high now. Where’s the freedom in that?
You aren’t buying freedom when you rent. You’re buying time until your landlord increases your rent or sells the home from up under you. When you own with a fixed rate, no landlord or lender can increase your housing expenses.
Gosh rental stress I'm not sure is better! We have moved 4 times in 4 years because landlords haven't renewed our lease. We have 6 kids. Moving is hard. Desperately trying to buy when the market is going crazy just to stop moving
But you had 6 kids first the question needs to be asked why have so many kids but no secure housing ...that's a lot of the issue here ...govt FTB and rent assistance is what people are relying on instead of housing security first!
@ykook7000 it would be so Amazing to get FTB and rent assistance. Not something my professional partner and I have had in years. We are professionals with a decent income.
Divorce, blended families life gets in the way. You've a very narrow view on what families should be
I don't understand. In Australia, do you pay the new interest rate even after you buy? In the US, unless you get a variable rate (which is dumb) you lock in a rate and that's what you pay until it's paid off.
I don't think all countries offer long term fixed rates. In my country (South Africa) you can only fix your rate for 2 or 5 years at a time. Then your rate gets re-evaluated again if you want to fix again.
I’d say that you bought too much house, like you admit yourself! People do it all the time, they move house because they’re buying, not because they need to move house.
I honestly believe home buying can crush the potential for a great life lived in so many people. We use so much mental effort through the saving to buy a home process that once we’ve done it we have no more mental currency in the bank left to spend on our desires, our dreams do travel, start a business or change career. We then just sit and live a mediocre life but “at least we own our home!”.
No, you settled. Do what’s right for you and no one else!
I hadn’t seen your channel before.. subscribed!
Really interesting video, Angie. Thanks for sharing.
It’s great that you are so honest with each other about the pressures you are feeling and about what your life goals are.
I also changed from more permanent teaching roles to CRT for many years, and absolutely loved it too. I agree completely with your comments about being able to get back to the joy of teaching, without all of the other red-tape and all of the stresses which suck the joy out of teaching. The flexibility is great, as is the relationships with so many different students in different schools.
Good on you both for being so clear about what you want such as travel, less stress and obligation and flexibility (and don’t want) in your lives.
Thank you 😊
Actually having a offset account makes the product more expensive what is your interest rate amount? One kid is the cost of one house .
much respect for talking about this important topic, especially whilst experiencing it first hand, most struggle in silence and awareness causes the next cohort to not know the risks of property ownership because of this
Kids don’t care if their house is big or small. It’s the time spent with the parents that matters. I’ve never understood why people buy a big house, having children, then, put the children in daycare so the mother has to work too. Why have children if you let someone else raise them? Children would rather be in a small house with their mother than daycare. The big house empty all day long, while family is out working or in daycare. Yep, I’m against having both parents work outside the home. Maybe find a job that you can work at home? Children grow up sooo fast!