Why We Gave Up Buying A House In Sydney • Rentvesting Australia • Sydney Property Market 2023

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  • Опубліковано 26 гру 2024

КОМЕНТАРІ • 81

  • @raycorc
    @raycorc  2 роки тому

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  • @littak7909
    @littak7909 3 роки тому +13

    Great video! The housing market in Sydney is beyond ridiculous. 1 Million + for a shoe box house thats needs renovations? No thanks. Buying a home is no longer my Aussie dream.… Financial freedom is. So while people my age (early 20’s) are still saving up for a house deposit because thats what their parents did. I’ll just sick to investing and growing my wealth without the headache of buying a home.

    • @raycorc
      @raycorc  3 роки тому +1

      Thanks for watching Talita - haha yeah it’s just ridiculous lately. Renting and investing elsewhere consistently (whether it’s stocks or real estate) is still a valid path even though it’s less common. I think it’ll be more common moving forward

    • @Larimuss
      @Larimuss Рік тому

      1.5m median price for a house in many areas now lol. Only investors can afford this shit. I hope it crashes honestly. To shit.

  • @GhanYt
    @GhanYt Рік тому +230

    It surprises me why everybody gets really worked up about inflation and inflation data. Inflation has always existed, and people have been using investments to beat the inflation. The sto_ck market return, for example, always beats inflation. I heard of someone who invested $ 121k last October, and has grown the port_folio by more than $400k. I need recom_mendations that can give me similar return.

    • @bahijarhafiri
      @bahijarhafiri Рік тому

      True. I first came across inves-ting in the market in 2019. Already stashed about $80k in savings then, and the free money from the Government was pouring in, increasing inflation rate. I just got an ad-visor and kept the money there, just because I didn't want to keep the value of the money depreciating in the bank. Tbh, it's the best invest-ment decision I've made since

    • @bahijarhafiri
      @bahijarhafiri Рік тому

      My advisor is ROCH DUNGCA-SCHREIBER she’s highly qualified and experienced in the finan-cial market. She has extensive knowledge of por_tfolio dive_rsity and is considered an expert in the field. I recommend researching her crede_ntials further. She has many years of experience and is a valuable resource for anyone looking to navigate the finan=cial market

  • @miriamwells35
    @miriamwells35 Рік тому

    We gave up too and bought a house on the Central Coast just before CoVid. We kept the unit for our daughter to live in and I come down to Sydney for work.

  • @johhnmorgan8329
    @johhnmorgan8329 9 місяців тому +1

    Which suburb do you live

  • @goran2009
    @goran2009 2 роки тому +3

    1.8 for young families, that is crazy... I'm building 5 bd two storey mansion with swimming pool for 1.6m 5km from the CBD and 300m from the beach... Adelaide is awesome ;)

    • @raycorc
      @raycorc  2 роки тому +1

      i'm jealous you get that much house for your money, if i didn't have family/friends in syd I would have moved
      where I rent, you can't get any house for under 2m now, all the 1.8 houses are at least 2.2
      crazy cause a few years ago it was a nothing suburb, not bad but not heaps desired either

  • @mishvizesi
    @mishvizesi 3 роки тому +2

    Thank you for this, I appreciate hearing someone else's view on reno's and building. Unfortunately where I live there's a huge rental crisis, we were only just asked to move a few months ago due to the landlord selling, and now this one looks like she's preparing to sell as well :( So for us its stability of not getting kicked out every 6 months (its happening a lot here) but I've been grappling with this renovating thing. I like the concept of it, but as a single mum of two and sole trader working from home it just seems like too much, with all the covid disruptions as well. Everyone says "don't buy someone's reno!" and seems to be the thing everyone does... buy a house and flip it. So it's nice to hear someone else talk about how effing disruptive that is. And also the land size thing... everyone wants the big blocks for resale value, but in my budget those homes are run down. I can afford a lovely house on one of those smaller 350m2 blocks that's fully renovated with a pool and some yard space for a trampoline, mortgage $50 a week more than rent. I think I'm just going to do it. This video really helped thank you, even though you're talking about rentvesting!

    • @raycorc
      @raycorc  3 роки тому +1

      You’re welcome and glad you liked the video - thanks for checking it out! Yeah it can be a bit of a rock and a hard place situation at the moment. I think it’s a case of getting your foot in the door. Seems like most people have to compromise in some way regardless unfortunately

  • @SuperOkiedokes
    @SuperOkiedokes 2 роки тому +2

    Totally agree, I'm also rentvesting atm, you can live in a nice apartment in Sydney without the burden of a huge mortgage.

    • @raycorc
      @raycorc  2 роки тому

      Absolutely, many good suburbs with low rents relative to house prices there

  • @48tilt
    @48tilt 3 роки тому +3

    Lived in the best suburbs in Sydney for 25 years. Best move i ever made was selling my lakefront at Narrabeen and moved north. Love it . Half the cost of Sydney.

    • @raycorc
      @raycorc  3 роки тому

      That's awesome, I've had a number of friends move up north and they love it. Bigger block, more money to spend on a nicer quality house too. I think I would do the same if my parents weren't getting older, my mum is in aged care so being within a reasonable drive of there is the main thing stopping me

    • @48tilt
      @48tilt 3 роки тому +1

      ​@@raycorc. Life is not a rehearsal. I had the same problem. Used fly down on a regular basis to see my mum..

    • @helloworld6126
      @helloworld6126 Рік тому +1

      North Narrabeen is in flood zone. Good to sell it and move further north

    • @48tilt
      @48tilt Рік тому

      @@helloworld6126 Agree. If there was high humidity there the water would come up to floor level. LOL. There are flood zones and there flood zones. Many areas are in flood zones that have very little risk . Narrabeen lakes is not one of them

  • @coast2coast4u
    @coast2coast4u 3 роки тому +2

    Nice update Ray - Living in the city and maintaining the Sydney lifestyle - found myself in a similar situation.
    With your property investment strategy, have you ever weighed up the pro’s and cons of buying off the plan V’s buying existing property? I noted you mentioned it in your comment below. For example, if an agent presented data, forecast & evidence to buy and build off plan in a regional location, would you consider it?

    • @raycorc
      @raycorc  3 роки тому +1

      Thanks for watching mate, yeah I’ve looked into it a little
      I’ve heard a few horror stories about off the plan deals going pear shaped so it put me off. Some of the cons include the builder collapsing, the house not being what you expected, build quality not being what you wanted, waiting a long time, potential lower resale value than expected and other things.
      The properties I’ve got are around 15-25 years old from memory
      If an agent presented me a good off the plan deal I would review it but from what I’ve seen I’d prefer to stick with existing low maintenance houses

  • @Chris-xu6wy
    @Chris-xu6wy 2 місяці тому

    Hello yep great idea , we have poor thinking of turning it into investment and buy more assets. Keep loans on investments so that you can claim interest on the loan at tax time. 10.properties that cashflow would be better then one really nice home I think. Thanks for the video

    • @raycorc
      @raycorc  2 місяці тому

      Thanks for watching

  • @dYanamatic
    @dYanamatic 2 роки тому +2

    Very true. After spreadsheeting it all - it just didn't make any sense. Who needs the extra grass with a bad house on it.

    • @raycorc
      @raycorc  2 роки тому

      Gotta do what’s right for your own situation at the time

  • @Jennings123
    @Jennings123 Рік тому +1

    1.8 mill on the gold coast or Brisbane would get you a gorgeous house in a beautiful suburb. I'm struggling to understand why people want to stay in Sydney. As someone about to enter the workforce (doctor), I'm looking at a long list of cons in Sydney..

    • @raycorc
      @raycorc  Рік тому

      Yep it definitely would
      In terms of reasons to stay (I’ve always lived here) here’s a few of mine:
      Most of my mates are here
      My parents are here (you only have so much time left with older parents)
      A lot of good jobs and high paying opportunities are here
      Many of the best restaurants, hotels etc are here
      Lots of different options terrain/activity wise - blue mountains, good beaches all along the coast, lots of waterfront parks etc
      A lot of people whinge about Sydney, but honestly I love living here. I would only live elsewhere to save money and if I had not many mates or family locally. I think it also drives you to earn more because you have to to live nicely
      Just my thoughts!

  • @consistentm5929
    @consistentm5929 3 роки тому +2

    I was looking to buy my first home, I tried twice and banks didn't like me being self-employed for less than a year. 5 years later I want to now invest in property hope they like me this time round. lol What are somethings a self-employed person can do to be in a better position for the banks to approve investment loan etc? Maybe a video on it? :)

    • @raycorc
      @raycorc  3 роки тому +1

      Good idea for a video, will add it to the queue! Yeah it seems they judge us so much harsher.
      I found they were way more open once I had 2 back to back solid years (which is annoying)
      Also some businesses really try to reduce profit / rearrange things for obvious tax reasons, but when it comes to getting a loan they want to see a solid profit on there, shows there's a comfortable gap between money in vs money out. So I find I'm trying to strike a balance between not paying loads of tax but also showing the business financials look very healthy
      Paying yourself a consistent salary also helps (not sure what you do), I know many people who just take out money when they need it instead of a fixed salary.
      Having somewhat consistent revenue will help too (no dramatic swings up and down), ideally it trends upward even a little and isn't trending down
      And like an individual, ensuring all bills and tax obligations are paid and up to date at all times!

  • @TheFattestManAlive
    @TheFattestManAlive 2 роки тому +1

    Hi Ray, do you have a buyers agent you can reccommend?

    • @raycorc
      @raycorc  2 роки тому

      G’day mate I’ve used Propertyology based in QLD 3 times and they’ve been pretty good - properties have performed well and they seemed to have solid research and data supporting their choices

  • @JJ-mc8lu
    @JJ-mc8lu 3 роки тому +2

    No more interest rate cuts as has been happening in the last 30 years since they were 17% is bad news to the housing market!

    • @raycorc
      @raycorc  3 роки тому

      yeah I think for the time being rates will stay low, I don’t know if negative interest rates will be a thing
      I think either way I’ll keep investing and as long I as I have cash buffers and don’t overextend myself it’ll work out well
      We’ll see how we go!

  • @martinleepgg
    @martinleepgg Рік тому +1

    12 months later with interest rates heading north ....maybe mortgagee sale?

    • @raycorc
      @raycorc  Рік тому

      Could be on the cards
      We ended up buying a place in the end, basically bang on when the rate rises begun
      Will be interesting to see how the next 6 months plays out

  • @samanthaedwards5413
    @samanthaedwards5413 8 місяців тому

    did you buy your properties in a trust (considering you have a business)?

    • @raycorc
      @raycorc  8 місяців тому

      G’day Samantha, the first 2 we bought in personal name (which wasn’t a problem, and didn’t really know anything about trusts) then 3rd we bought in our family trust (acct set it up for us) then 4th for the family home we bought in personal name so we can take advantage of no capital gains tax when we sell. For ongoing properties we’ll probably buy in the trust (or some people have told me to have multiple small trusts, ie one for each investment property)

  • @PapaSamaan
    @PapaSamaan 3 роки тому +1

    Hey Ray, another great video!
    I was looking at using a buyers agent too but there are obvious conflicts that you have to consider in the process to understand what their fiscal motivations are. Can I ask who you used and what was the reason you used those agents?
    Thanks!

    • @raycorc
      @raycorc  3 роки тому +2

      G’day mate, yeah agree you have to be careful with some of them. The ones I’ve used for 3 properties are Propertyology based in QLD. They don’t do off the plan or anything like that, existing houses in regional areas typically. They don’t get commissions etc from any other party, I’ve found them to be great, I’m usually busy so it helps to have them handle the process. I was referred to them by a client of mine, I like them because they seemed to be more thorough in their reasoning compared to others I spoke to, and they always provided data and evidence to support their reasoning which I liked. Generally they were really easy to work with and so far the properties have performed well (there’s no guarantees I guess but I can only go off what’s happened so far)
      Hope that helps!

    • @PapaSamaan
      @PapaSamaan 3 роки тому +2

      @@raycorc Thanks Ray! I've reached out to them. With respect to the cost, I know some other brokers are tax deductible. Did you find that this was also a tax deducible expense?

    • @raycorc
      @raycorc  3 роки тому +1

      @@PapaSamaan sorry for delay in reply - buyers agent fees aren’t tax deductible and mortgage brokers are paid by the banks, so no tax deductions from that end unfortunately! I wish

    • @PapaSamaan
      @PapaSamaan 3 роки тому

      @@raycorc All good mate thanks for the help! You're still paying for a service that is worth it's weight in gold, no harm felt.

  • @raycorc
    @raycorc  3 роки тому +3

    What do you think? Is it better to buy a family home or keep renting + investing?

    • @jacintaharford1564
      @jacintaharford1564 3 роки тому +1

      Hey Ray, I think rentvesting is a great idea, and especially since I cannot afford in Sydney full stop. Where did you end up buying, which suburbs? I am currently looking in Nowra, Newcastle and the Central Coast. Trying to figure out where to go! Thanks, Jacinta

    • @bobbobblesworth5634
      @bobbobblesworth5634 2 роки тому

      Why not both?!
      Many variables of course but given most would make minimum repayments and pay a mortgage off over the standard 30 years, you’d be better off dumping it all into something like VDHG or VAS through the NAB Equity Builder. Significantly easier and you’ll come out ahead.
      If I’d known this before buying the family home I most likely would have gone the ETF route. But we’re also about to start the challenging adventure of paying off $700k in 7-9 years with 2 kids.
      Once that’s done, we’ll keep paying the equivalent mortgage amount into the top ETF’s at 80% gearing plus withdraw equity to match it so looking at about $30k/m into shares. Nice win/win in my book 😎
      There’s still some value to be found out in West Syd but I would definitely wait until this cycle has cooled off.

  • @cwan2138
    @cwan2138 3 роки тому +1

    I go through the same process as you in house hunting in Sydney , and I give up this year March . Sydney house is way overpriced and why buy put all eggs in one basket. I then invested in shares , Gold , and rewards myself with a nice bike

    • @raycorc
      @raycorc  3 роки тому

      Yep agree, I like having things diversified as well, at least early on. Have also been putting money into shares, love how easy and quick it is compared to property

  • @liyantotjhua4829
    @liyantotjhua4829 3 роки тому +1

    Thanks for sharing Ray!
    I am still in stage of convince my partner about renvesting+positive cashflow, and its hard.
    seems like she want PPOR so bad

    • @raycorc
      @raycorc  3 роки тому +1

      No worries Liyanto, thanks for watching. Yeah it can be a tough conversation, some people are very attached to the idea
      When I discussed it with my wife I said this will put our family in a strong positive a few years from now, and we still will be able to buy a family home eventually anyway so it was almost a temporary thing early on
      Also I explained the numbers and that if we just lay low for a while, build up the portfolio with the right properties, we’ll be able to retire significantly earlier
      Might be worth you sitting down and having a proper chat about what you both want and then mapping out a plan/strategy to get there, more communication always helps I’ve found

  • @JJ-mc8lu
    @JJ-mc8lu 3 роки тому +1

    Record debt just when rates are at bottom. Has Australia gone mad? What happens when rates skyrocket to curb this mindlessness?

    • @raycorc
      @raycorc  3 роки тому

      Yep will be interesting to see what happens when interest rates head back up, I think a lot of people will struggle and have overextended themselves

    • @moneytalkwithj3324
      @moneytalkwithj3324 2 роки тому

      Absolutely true, the interest rate is at all time low which boosted the housing market, but it won’t be this low all the time!

  • @Dan-rg7jj
    @Dan-rg7jj 3 роки тому +1

    That's a good idea about investing in regional properties. The banks are insane with sole traders. They won't give a cent to get you started. Rather give money to people who are employed 1 day a week vs business that have increased work to an unstoppable level over the pandemic.

    • @raycorc
      @raycorc  3 роки тому +1

      Yeah it’s crazy hey, I feel like my wife can supply 2 payslips and she’s good to go and I have to submit 47 documents before they’re okay with it

    • @Dan-rg7jj
      @Dan-rg7jj 3 роки тому +1

      @@raycorc Would you be able to recommend any banks or finances who are easier to work with? And ones to avoid?

    • @raycorc
      @raycorc  3 роки тому

      @@Dan-rg7jj hey sorry for delay in reply just saw this. In terms of worst experience I had huge delays (5+ months for a refi) with ANZ so I personally avoid them now. I recently had a really good experience (fast 5-7 day pre approval) for my most recent property with Great Southern Bank (used to be called CUA Bank) - I ask my broker as well for their recommendations as they deal with their lending teams on a daily basis too

    • @Dan-rg7jj
      @Dan-rg7jj 3 роки тому

      @@raycorc All good thanks for getting back to me. I was looking at ANZ but will avoid them now. Great Southern are good it's true, but won't lend to businesses under $250k turnover going off what it says on their website.

  • @jackmac7777
    @jackmac7777 3 роки тому

    hey mate after watching this video I still don't know what you're talking about ? I understand your issues with buying that perfect family property, so what have you actually done ?

    • @raycorc
      @raycorc  3 роки тому

      Rentvesting is where you rent where you live and invest your leftover money - often in regional investment properties or things like index funds and ETFs

  • @johhnmorgan8329
    @johhnmorgan8329 Рік тому

    Tweed heads kingscliff byron is expensive ballina and banora point is a bit cheaper

  • @GoldcoastSurfCam
    @GoldcoastSurfCam 2 роки тому +1

    So who are buying these 2.5M houses? I can't understand where the money is coming from, and doubt that banks are loaning that much money.

    • @raycorc
      @raycorc  2 роки тому +3

      Pretty doable on double income (especially if at least one of them is a good salary). 20% down and say 7500 a month. Not cheap by any means but a good income can cover that
      Many people have existing assets (stocks/property) and have enough income to service the loan. Like I have my income, wife’s income, income from side projects and we have rental income from our properties to help pay a family home loan
      You wouldn’t get a loan like that on say the average salary in Aus though (I think it’s like $80k these days), or on single income

  • @mightymoto453
    @mightymoto453 2 роки тому +1

    If only you got in some years back and you would've gotten lucky with a 100% return rate in 7 years. That was the perfect time to get a house now everything's overpriced

    • @raycorc
      @raycorc  2 роки тому +1

      Yep big time, I wish I had done more back then but I guess hindsight is 20/20
      That said I’m planning to keep buying investment properties consistently so next boom I have plenty of assets ready

  • @Johnny15302
    @Johnny15302 2 роки тому

    Gonna buy outright now?

    • @raycorc
      @raycorc  2 роки тому

      Ha, I did end up buying a few months after doing this video. Probably overpaid but happy to be settled in, we’ll hold long term so won’t matter in the scheme of things

    • @Johnny15302
      @Johnny15302 2 роки тому +1

      Ouch, I will buy in 6 months at rock bottom but with high rates. Materials are still high , so many building companies going bust if you get a fixer upper.

    • @raycorc
      @raycorc  2 роки тому

      Yeah it’s tricky whichever route you take at the moment - everything takes forever and costs so much more these days

    • @Johnny15302
      @Johnny15302 2 роки тому +1

      @@raycorc because the value of money is dropping as they have printed too much.

  • @Jay_Seeney
    @Jay_Seeney 3 роки тому +1

    No doubt that property has gone absolutely insane recently. Gotta put the money where you feel best 👍

    • @raycorc
      @raycorc  3 роки тому +1

      100%
      either way would probably work out fine in the end I imagine

  • @danmclaughlin1180
    @danmclaughlin1180 2 роки тому +1

    A wise man once told me the best time to buy property was 10 years ago the second best time is now. If you don't believe me we'll chat again in 10 years.

    • @raycorc
      @raycorc  2 роки тому +1

      ha, funny you say that - just bought our family home last week. Ended up changing plans for multiple reasons which I'll cover in a video at some stage
      I got to the point where I'm okay with a short term dip knowing long term it's likely to do well

  • @48tilt
    @48tilt 3 роки тому +2

    Tax free capital gains.

  • @vinnishbaby7222
    @vinnishbaby7222 3 роки тому +1

    Great one. I did the same too.

    • @raycorc
      @raycorc  3 роки тому +1

      Awesome, I think it’s a great option