How disturbing is the property problem in Melbourne, and Australia generally and I won't even mention the US. Oh, I am. One of the worst areas in US is Ohio. Thankfully my beloved blogger in the Ohio, US is a sensible young lass and knew how to set herself up for the future
I was living with R in his recently bought one bedroom Elwood flat and paying the expenses and then some. He paid $17,000 for his flat. He had no money after a relationship break up and a friend helped him and he paid her back quickly.
I managed to save $8,000 in a couple of years by never spending any money and we found a house to buy in East Malvern for $42,000. I only knew eastern suburbs back then. No where else existed. I was 23 I think. My bank was un-cooperative so I went to Hotham Permanent Building Society. The maximum I could borrow from them was $30,000, so with my deposit, $38,000 but well short if you include buying costs. There were also condition about things that had to be done to the house, such as water pipes renewed, a new hot water service.
My mother signed some paper work that she gifted me the difference, but she didn't, even though I asked and she had it.
We borrowed the rest with some subterfuge at a credit union and this was in the days of a maximum $500 Bank Card.
The house was pretty well a slum and we lived in the slum conditions for quite some time, but gradually we got the place together and sold it some seven years later for $186,000. We then bought for the same price a bit grander place in Glen Iris when there was a bit of a property slump.
One thing we did get right in East Malvern was buying the worst house in the best street and surrounded by good houses but that was just luck.
Were we under extreme financial stress at times? Yes! Did we argue about finances? Yes! Did we go without? Yes! Did we wonder what in the hell we were doing? Yes!
Was it easy? No!
While I have a lot of sympathy for young people starting out and wanting their own home, don't think you are the first to suffer. It was never easy to start on the own home road and you do have to go without.
And why do you want the grand palace in the outer burbs? Consider something a bit closer in and considerably more modest, your kids might actually thank you in the future.
I am watching kids grow up in the highrise, and gee, contrary to my expectations, they seem to have a pretty well rounded upbringing.