Without help from FAMA, there is no way in hell the younger generation will be able to set foot on the property market.

I have a younger friend who is finishing his medical specialist training soon and even people like them are having difficulties accumulating the deposit required. These people will eventually end up being the top 1% earner in the country but the first step is so much harder nowadays compared to my time. Getting into Sydney or Melbourne market is the hardest.

This post has been edited by Garysydney: Jun 10 2021, 06:48 AM

Tqvm bro Gary for your confirmation on my suspicions in the above. Guessed I will have to help my young ones since it is no fault of theirs from the start.

Yeah,... medically-trained specialists ending-up as 1% of top-earners in the ctry,... reminds me of that doc who talked a lot in this forum,.. proven eveyrthing he had or purported to have, showed his IELTS results not once but twice , asked and challenged others in this forum and suddenly kept quiet,...

Must have met with a major accident or something along that line to suddenly shut him up abruptly,... Apologies for going offtrack,.. tq again, bro Gary,...

Just sharing a bit here : my kids have settled down nicely in Sydney today, for now... one is in the arts, participating in the world championship soon in The USA and another scored above 90 for his ATAR. Doing a double major now in the UNSW. Tq again for much of your advice earlier,....

Thanking others too in this forum who have contributed to me and my kids' matters earlier,...

Edited by adding : I have a nephew now who is keen to follow the footsteps of my kids,... do you think Australia is a good place to go to anymore after this, bros ? I'm thinking of helping my nephew too,... of perhaps send him to another ctry which is recovering well,... like The UK ? This nephew of mine is still young, just 13,... sending them out earlier is better,... this has been proven by my own kids who were sent out when they were 12 and 14+.

This post has been edited by Hansel: Jun 10 2021, 11:11 AM

My mum helped with about 40% of our down payment for the unit in Lidcombe or otherwise we'd have to gather money for another 2-3 years, which at this rate the price would be closer to 700++ than the 650 when we got ours.

It's easier said than done if we are to move to somewhere cheaper - if we choose to remain on the outskirts of Sydney, it'll be far from CBD. Even the houses at Doonside which is considered pretty unsafe are selling at prices pretty close to suburbs around my area.

I've also considered Brisbane as an option - but it depends on if we can find jobs that suit our career or starting fresh (again). As simple as it sounds, how many people relish starting anew from scratch leaving friends, family, networks and familiarity behind by moving to a different city (potentially on the other side of the country)? If the only way to buy proper houses is to move to the very edge of the city or to a different city, there won't be any first home buyers anymore unless they have parents to back them up or with couples with high paying jobs.

You have done well by buying in

Sorry i couldn't have a second lunch with you as i was quite busy with relocating back to KL. Now that i am here, i have no regrets. Things here are a lot cheaper than Sydney and weather is quite okay for me. I am now living in Mont Kiara (my wife's four bedder) and it is so big that i feel a bit uncomfortable as i have to shout when we talk when she is in the bedroom (and me in the lounge). I go out for my morning walk everyday at 7am and there are a lot of morning walkers as well. I have not had the need to use air-conditioning so far so weather is not a problem for both of us.

This post has been edited by Garysydney: Jun 10 2021, 12:07 PM

You have done pretty well with two kids in University. Are your kids living together in Sydney? It must cost you a bomb to have these kids in Sydney.

I think with the way Malaysia is going, a lot of people will be looking to migrate - you can see it is very obvious that Chinese have no future here anymore. I am retired now with quite substantial retirement assets but i really feel for those with less financial resources. Very sad indeed. I think it is good for you to help your nephew go overseas. You are in deed a good uncle indeed

Yeah quite expensive without taking the exchange rate into consideration,... thing is I have three vehicles and one 650cc bike there used by them,.. The boy stays in Hurstville where there is Asian food nearby,... the girl stays in Canberra.

I guessed,... staying in Msia needs a lot of adjustments, especially with the Kerajaan,...

Hoping to meet you one day, bro Gary,...

Wow! Three kids in Australia. Must be costing you a fortune

You have an interesting wealth of financial knowledge that you share across LYN - to be honest at my age now, i am not so keen to chase more wealth esp since i don't have kids and i think i should have enough to last me through my golden days. I have been extremely lucky to inherit quite a lot of assets through my parents to which i have been extremely grateful.

Read from SMH that today in Sydney, it was the coldest day for 37 years. Must be freezing there. Lucky i am not in Sydney now otherwise i would have to wear a few layers

That's why I keep advising to avoid Sydney and Melbourne. Especially when you do have a choice right from the beginning.

Both my older 2 kids bought their 1st properties in BNE by themselves. Both are now rental properties.

The younger one already has the down payment for Melbourne, but cannot commit due to uncertainty about job location at the moment.

So it's possible. Without Fama help. In smaller cities.

Definitely agree with you.

If younger migrants have to suffer because of the high cost of buying a roof over their head and the need to pay it off over 20-25 years, their quality of life will definitely suffer. I like Brisbane maybe because of my age and my dislike of colder weather. However all my friends and relatives are all in Sydney so i may not have a choice but to live in Sydney if I decide that KL is not to my liking - just that i may have to run off to warmer places during winter.

At the moment, my wife is really liking it in KL. Due to being stuck in Sydney since Jan 2020, i find the variety of food so fascinating and plentiful in KL (even though we cannot eat in). I just have to be careful when going out and not go too near other people

I don't know, bros,... but I think it depends also on the earning power of the kid. My younger one is doing architecture+civil eng'g,... wouldn't his income be able to afford a property in Sydney or Melbourne later ? ... generally-speaking....

I don't think they will be able to buy on their own - they will need two incomes to afford a small unit in Sydney. Even in Campbelltown, decent two bedder (units) will be around A$500k. Your kid probably doesn't want to live in Campbelltown as it is more than an hour's drive from CBD (say using M5).

Your kids will probably need you to help out with a good deposit if they want to live in Sydney or Melbourne. If you want a decent two bedder nearer the city in Sydney, you will be looking at closer to A$800-900k. Sydney is very expensive when it comes to residential properties

most of my friends in melbourne are in architecture field too but they still need FAMA assistance for 1st downpayment

they only get comfortable after doing more freelance job

In Melb or Sydney, you will definitely need parents help with the deposit even on two incomes. Even with housing rates at 2% now, you will still need a good deposit to break in. Very hard to enter the property market unless you got rich parents who are willing to help

yep, is either you stay outside CBD or look for smaller unit within CBD

Tq bros, for your opinions,... Will prepare myself then,....

My friends all have to help children buy in. The average amount given to their children was about A$130k each - otherwise their kids will be renting forever

It depends on how thrifty the kids are. It took 4 years to save the 20% downpayment in BNE, and the youngest also just reached 20% in Melbourne, but cannot proceed due to uncertainty about long term location.

But the point is taken, most do need the FAMA help in the downpayment, because it's not easy to save, and many have problems with stable jobs, or had to work outside qualifications.

This post has been edited by limeuu: Jun 17 2021, 10:12 PM

Younger generation nowadays are not as discipline as generations before. Younger generation nowadays are predisposed to spending and have no desire to save/accumulate unlike our generation.

I don't know about kids in Malaysia but kids brought up in Aust (ABCs) have a propensity to have good life (eat out, travel) - how would you expect them to save when you have such lavish habits? I suspect Malaysian kids are probably similar in their spending patterns.

To save A$100k-A$150k (young starters) need a conservative spending approach which sadly is lacking in younger kids nowadays and they blame the boomers for property price appreciations

On dual income, it took me about 3 years to save up the deposit for a house 25km north of the Melb CBD. I went the land + build route. Bought land in Dec 2018 and finally moved in Oct 2020. Admittedly, in total it was only $650k+, for the basic house and land. Don't get me started on all the extra stuff like fencing and concreting. Ugh.

We might have been able to do it faster if we didn't do so much eating out and travel and all that stuff (gotta live it up while younger and childless). Also had no kids at that time so so essentially DINK lifestlye.

This post has been edited by Rand: Jun 18 2021, 07:58 AM

Good on you my friend!

i guess 25km is not really that bad and A$650k is fairly affordable. I guess if you had parents to help you, you will probably have done it earlier.

Most of my retiree friends in Sydney have always expressed that without helping them with a good deposit, their children would never have been able to buy in. We are the lucky generation where assets were a lot cheaper 30-40 years ago. Even though my retiree friends have quite a lot of passive income coming in through their super and rental income, most of us are still pretty thrifty because we have been living a life like this throughout our working lives and being first-generation migrants is not easy as most of you guys would know.