Do you own property , if not do you plan on purchasing and when , if you do what is your goal with the property?

[molonski2]

So to own a house or a Condo is extremely important , yet its viewed differently all around the world , in Australia its so very difficult to start , and the cost is enormous. So what is your strategy with regard to homes ownership or investment?

Updates

+1 y

Enjoying the answers , its great to see how many people are into property , and love their locations , I worked 30 years ( nearly ) in land development , so I'm fortunate to have / own 2 houses in Australia in greefield sites ( Victoria ) and a small Condo in Thailand.

Updates

+1 y

Was just reading today about Australia again , and in the major Cities its amongst the most expensive property in the world , Sydney is now back above all time highs , Melbourne had Danial Andrews try to destroy the market , with both taxes and his ludicrous Covid views , and its still set to boom further. I worry about the younger people though , this is all not good news.
In 1989 , I purchased a house in Seaford , Railway Pde for $76,500 aud , today this same house is 650k + .

[Lliam]

My wife and own 30 acres of oak grassland on a west-sloping hill in a rural part of the western Sierra Nevada foothills.
Our 4/10 of a mile long gravel driveway climbs 300' to our house on the hillside.
Our single story, 1600 sq ft three bedroom, two bath house is super comfy with an open floor plan for the kitchen, dining room and kitchen. Actually, one of the bedrooms is a large office.
We have nice decks in front and back, with 8' wide French doors leading to the back one. Big windows in the living room and skylights in the kitchen and master bath make it feel bright and airy.
We have our own well and pump water into a 2500 gal tank on the hill above the house to gravity feed water to our house and yard.
We have a propane tank for our hot water heater, stove, clothes drier and furnace.
We have a grid-tied solar-voltaic system.
We have a steel, two story, 2.5 car garage.
We have a small orchard inside a deer fence with 13 trees including a variety of citrus.
We have raised beds for herbs and veggies. And we have decorative gardens in front and behind the house.

The sunsets and the view are gorgeous.
We love the deer and other animals that visit. There are lots of birds, including turkey and quail.

We have nearby neighbors on our street but can't see them from our house because of the trees. Our next door neighbor gives us free eggs.

We are five minutes on good roads away from a highway and all necessities, including a mechanic, a gas station and mini mart, and a small post office are less than five miles away. Two medium-size towns are 20 minutes away in opposite directions (one has every service and big box store), and large cities are 45 min to an hour away.

There are farms, ranches and wineries all around. Organic food and pasture raised meat is available from the source.

We have zero earth quake or flood risk and excellent fire protection.

We built it in 2002 and continue to make improvements. We love our home and feel blessed.

It was a good investment. Our mortgage costs way less than rent on a one bedroom apartment these days.

[molonski2]

@Lliam
Thankyou for sharing Sir , it sounds absolutely spectacular property. Can I ask a couple of questions please?
1. Was this a tree change idea in 2002 , or did you always reside on such a property? ( Country side )
2 . How much would you estimate the property is worth if you were selling today?
3 . Is it a fixed mortgage over 15 or 30 years and will you intend to pay it out early?

Again , sounds utterly spectacular , and love the sound of that wildlife.

[Lliam]

I was a suburban kid all my life. After my wife and I got married in 1996, we talked about buying a house, but the market was high where we lived. I was able to transfer to northern California through my employer.

I wanted one to five acres and a house so that we could grow some food, maybe have some chickens, and be sort of self sustainable.

Once in northern Ca, we went on an intensive search over a wide area. We finally happened to fun across this property for sale by owner. $80k out the door. It was bare land but gorgeous. And it was a nice area. Fortunately, it had been for sale for quite a while, so I had time to research how much it would cost to build a driveway, house pad, well, septic, electricity, and build a house. We decided that we could pull it off, so we bought it and got started.

So, no, I had no experience with rural life.

[Lliam]

Yes, we have a fixed 30 year mortgage at a good rate. It's about $1150 a month, not counting insurance and property tax.

I don't know how much it's worth today. The market has fluctuated a lot over the years. It's probably close to $500k right now.

[molonski2]

Thats the prop in Australia no 30 year fixed terms , or 15 years .
500k thats good ( Cheap for Aus ) .. How much approx did it cost you to build the house? Thats VERY cheap land.

[Lliam]

I don't know. The house, itself was around $75,000. We went with a manufactured home and upgraded everything. 2x6 framing, double insulation, lots of extras. Plus, their engineering dept agreed to do custom things to the kitchen and office per my request.

Over and above the house, we added ceiling fans and lamps, 8' wide French doors and nice, covered, front and back decks. It's on a 4' high foundation with access doors for storage. There was the driveway; large house pad; well, water tank, lots of hose bibs and a fire hose hook up; septic; grid-tied solar electric; propane tank; garage; sheds; deer fencing with lots of gates around the orchard and raised beds; walk ways and stone steps in the yard and orchard; underground drip irrigation system; and other things.

So I really don't know the total cost at this point. We did everything to live comfortably and affordably, not so much with profit in mind. But we'll get our money back and quite a bit more if or when we sell.

[molonski2]

Sure , understand best reason is always lifestyle I believe.
It is so much cheaper to build there than Australia , and you were able to use the original Pad?
We call ( Slab ) as in " Slab of concrete " , foundation .. Theyd make you do a complete new one in Aussie.
It really sounds brilliant.

[Lliam]

Not a slab. Just dirt. They had to cut it into the hillside and compact it.

[molonski2]

That in Australia ( we call ingrounds ) due to regulation , would also cost a plethora , which is really silly , but thats what happens when you over regulate construction , there are also a heep of expensive fire regulations also.

[Lliam]

Remember that we did the original stuff in 2002 and added everything else by 2008 or so. It would be a LOT more expensive now.

And they just started going crazy about fire hazards in California over the last year or two. They cancelled our home owners' insurance but we got new insurance and it is even a bit less expensive.
So far so good. 😀🤞

[Lliam]

Thanks for the MHO, mate!

[molonski2]

My pleasure , nice to talk.

[JacobJordan]

we (my wife and I) own property in Moldova, Romania, Greece, Scotland, Hungary, Turkey, and Italy. we have houses on all of those properties as well though I am still doing additions to all of them in 3 month blocks.

[molonski2]

Fantastic.. How did you afford that?

[JacobJordan]

made some good choices in my early 20's (I am 39) then when covid happened I dropped 14m into various stocks that I figured had bottomed out and should climb shortly. the return on that first set got me to over 400m when I sold all. bought in closer to the end of covid when gas and oil plummeted again they landed at around 33$ a share. sold when it capped again around 110$ a share. soon as flights opened I left the US and transferred all of it into my bank account opened a new bank account in Europe and transferred it all over. then the wife and I started buying property

[molonski2]

So hang on - You topped out at $400 mil US $ ? Is that correct?
If so sht - Well done Bro !

[JacobJordan]

from the first investment yes. the second one was higher but I have since invested some of that so we have passive income as needed and I have purchased some smaller businesses in Europe for more income. my job up until the end of covid was the owner of a laboratory.

[molonski2]

Wow Jacob , you'll be a Forbes Rich List , So you moved to Europe? What about all the pending taxes in USA? Good move to go to a property base.
Nice moves bro , well done , I'd love that kind of cabbage , Aussie market is too small ( Equities ) .

[JacobJordan]

I suppose I should start at the beginning for this to make sense. my family is comprised largely of doctors, scientists, lawyers, and engineers. as a result I and my brother were pushed very hard to do well in school and get into college ahead of the curve as it were. we had a lot of ap classes even in middle school we had tutors in addition to regular school as result I entered high school taking senior level ap courses, trig, physics, calculus, technical math, chemistry etc. this culminated with my entering college as a junior as I had taken so many ap and college courses beforehand I had the credits to enter with that. it was absolutely miserable but it was what the family wanted so it is what I did. I had my bachelors and was working on my doctorate (bio chemistry) the next several years. which took me an additional 3 years (would have taken longer but I had talked to my professors and made a deal to get things done faster by going year round and doubling on classes) I got my first lab job when i was 23 (I met the woman i would marry a few months before that) the owner of the lab was a family friend who was wanting to retire so after proving that I could do the job properly he handed me the reins. I was making a fair amount due to government contracts. so I began investing as much as I could afford to be with out (leading to a mistake that cost me almost everything I had up to that point)

[JacobJordan]

I ended up having to liquidate all my other investments of which 2 had made me some money. that money plus work is what tided me and the woman I would marry over for the next 3 years until we married. after that I was just working and slowly adding to a few stocks that seemed like a good idea. some paid off some did not. this brings things up to covid where my lab was one of many that was tasked with handling a massive influx of chemicals, blood, dna samples, bits of the virus etc. during that phase I slept in my office as I was working 14-16 hours a day. the government was paying the bill for labor so I made sure all of my staff were taken care of. the first investment I did was at the beginning shortly after the government shutdown. this was the amount that got me to a bit over 400m. I bought back in with all of that when some stocks plummeted again that was right before covid ended. after covid had ended I sold all I had since gas prices were starting to climb in the US. I hired 2 people to run my lab and we left the US as quickly as we could. we brought our 3 little ones with us and have been in Europe for the last several years. oh I also do not talk to my family anymore. not do to any animosity but I have moved on with my life and as much as I love them I have a feeling they would be less than thrilled with my choice to stop working

[JacobJordan]

well as the money we made had not been transferred to a bank it was listed as "unrealized gains" it is the same thing a lot of even richer people do to avoid taxes. you can not be taxed on unrealized gains. should those funds hit the bank account they are then taxable as capital gains tax (around 35%) we transferred them to a european bank account which converted it all to euros and was subject to different tax laws. after taxes we have enough to do whatever we want and largely we spend our time together and with our 3 children. I have taken up helping those in my community since I have the funds to help and I don't need all of it

[molonski2]

What a fantastic story , thanks so much for sharing.
That move tax wise would be impossible in Australia , would it not have been better to use a tax haven like all the tennis players do? And what a wonderful life for your 3 Children.
So really in the end , all that ludicrously difficult education expectations and work , did pay off , they paid off with more freedom.

[JacobJordan]

well fun fact about Europe is that the eu doesn't control the taxes it is each individual country and most of the countries don't tax transfers. as the money was a transfer and not an income we received no tax on the money. and yeah it was definitely worth the hard work at the end of the line as they say but upfront it was not fun at all.

[molonski2]

It sure doesn't sound like fun , you put in an incredible effort.
So any equities you fancy in the USA or Australia now?
I'm mainly in just financials , REITs , Big mining , and gaming , I run the portfolio via sector , its more about the income.

[JacobJordan]

fossil fuel things gas oil coal always worth investing in just have to combine it when gas prices are low and then sell when gas prices start to climb. renewable energy specifically wind/hydra over solar. paper was amazing during covid otherwise not normally worth investing. I tend to focus more on the world event influenced stocks as information constantly pops up even without looking for it.

[molonski2]

I had a win with Coal , 100% and a couple a great divs , but I sold because of Australian govts attitude towards Coal , but the few remaining companies have been great..
I always had a renewable focus , did wind , and plantation timber for a decade , did well with all that.

[JacobJordan]

smart. keep it up and you'll be fine. I will say that at least in australia your job market is far more fair than the in the US. few of my colleagues have kids turning 16-18 and trying to get first jobs they getting paid 11$ an hour from companies that can afford to pay them 35+ easily. my brother had went to work in australia following a world trip and entry level position paid him 24$ an hour

[molonski2]

Yes , thats correct there is living wage legislation although creeping in is a bit of " Geek " economy , some is okey , but too much is no good. I actually left some years ago , and I live in Hua Hin Thailand , vastly less expensive and better life.

[NathanDavis]

yes, with this very one in particular, the most possible plan would be to eventually sell it, to a family... this in the case I finally decide to move and buy somewhere else

the other option would be to just keep it in the family... and for someone younger to have it, eventually... most of it's worth is the location

[molonski2]

Where is it Nathan? Do you have a mortgage?

[NathanDavis]

no, it's all paid for... I do have a couple, around Texas

[molonski2]

See , at 33 years of age that would be absolutely impossible in Australia , unless inherited , well done , nice.

[NathanDavis]

I disagree... a couple of my friends bought property in California that was even more expensive than Sydney or Melbourne...

and they were aged 24, and the other 26

but, we are in business you see (and none of us went to college/careers for 6 to 8 years) so it is a bit different that working 9 to 5, on that I agree

[molonski2]

But do they have a mortgage?
Even with a great business with awesome cash flow , no college , it would be extremely difficult in Australia , borrowing the money is also much more difficult , and no 15 and 30 year fixed terms.

[NathanDavis]

no... they're paid for, you asked about owning a property

and yes, I have friends in Australia... and it seems to be getting out of control, especially with that trend of foreign people just throwing millions and overpaying with such an ease and no care, lol

[driven159]

I own my own 3 bed 2 bath home no mortgage I own it completely. I started by buying a house paid it off in 5 years worked every day didn't buy new cars didn't take vacations but was worth it in the end now. that Iam retired life is good with no worries

[molonski2]

Thats great @driven159 well done mate , nice.

[LazerBean]

We have a house now, but we would like to upgrade in the future. It's going to be tough finding something we like, though, after living in such a convenient location.

[molonski2]

Where is it? and what do you love about it? Mortgage?

[LazerBean]

Well it's exactly 6 mi between both of our parents' houses, plus it's in a really nice neighborhood that is secluded but still close to everything we need and want in town. Still paying it off, but it's not much

[molonski2]

Thats awesome , see at 22 years old that would be virtually impossible in Australia even in a provincial town.

[LazerBean]

That's too bad, but just another thing I love about American. My husband was 18 when he bought this house

[BoopBoopBeep]

own a primary and a couple rentals. the primary is my forever home because i have too many memories here of great times with my rescue kittens, and my mom did all the builtins (she's a carpenter) throughout the house and i'd hate to lose them

[exitseven]

I own a primary residence and a vacation house. I plan on selling them both and moving to florida.

[molonski2]

Florida is more expensive right?

[exitseven]

No I want to buy two houses in Florida and rent one out. I live in omne of the most expensive states in the country.

[Sour-rose]

Nah, i don't own any propery as of yet. But when I do, probably gonna make a farm on it. Then when i get more land, design my dreamhouse.

[matchrestore]

My wife and I own a house, and I own 80 acres of farmland that I rent out.

[RealMarek]

Divorce and unemployment left me without property. I’m locked out of the market and, unless my start-up is a home run, probably won’t buy unless there is massive deflation after the dollar loses reserve currency status.

[Dargil]

I own a middle class home. It or its replacement will be my retirement fund.

[RavVid]

Yes. Housing is very expensive in Australia. The US looks very cheap.

Fortunately I have my foot in.

[molonski2]

Well done..
Me also ( In Australia ) , but that's just as well at my age.

[RavVid]

Given how cheap housing is the US I am pretty interested in what you get.

[molonski2]

Yes , it certainly seems inexpensive and not such a big deal in USA , so many regulations and rules in Australia just pumps the price of land.

[RavVid]

It wood be good to know how that happens and to fix it. It does seem that people want to live inner city so less stock of housing is a factor.

[molonski2]

They can't fix it now , too much at stake , including the big 4 banks , they just keep increasing building regulation , permitting.

[RavVid]

yes reducing prices would be trauma

[Drewtate]

Yes. I own 4 houses. The rent pays the mortgage.

[molonski2]

I own 3 also..
Thats impressive at your age , Where are the houses?
What kind of mortgage did you take out?
What do you estimate ( nett ) your portfolio is worth?
Again well done indeed

[Nikki1989]

No, there is no incentive to buy anymore, especially if money is tight.

[molonski2]

At your age you would not consider buying or trying to?

[Anonymous]

I have three houses
It kills me that my wife will get half if we break up. She paid zero.
☹️

[molonski2]

I had this same situation years ago and had to start again at 38 years old.

[Opinion Owner]

At least age 38
You have time to start over

[molonski2]

Yes , to a degree , with 2 kids ( young ) 5 and 2 , it was not easy with Australian Child support , and fighting for 50/50 which I got , and still had to pay , that marriage was a bad mistake by me.

[Anonymous]

Nope. Not many people can afford to pay for million dollar homes in Australia. It's even getting to the point rent is becoming unaffordable

[molonski2]

Very much so in Australia , I worked in property for 30 years there , I'm fortunate to have purchased a couple long ago.

[Opinion Owner]

How though when most people can't get a home loan because banks have admitted they will not grant you any kind of home loan unless you are earning around $150k a year. This was the ceo of a major bank In Australia who said this just last week on the news. Half of Australia don't even earn $80k a year.

Homes where I live in western Sydney are now selling for a million dollar some are even selling for more than a million dollars.

Rental properties are even becoming expensive

[molonski2]

Virtually impossible anywhere in Sydney , I was from Melbourne.

[DextroShade]

I own a house, got it before Biden jacked up the interest rates because his globalist masters don't want the peasants to own property.

[Sparkie460]

My house will be paid off this month. Yay me.

[molonski2]

@sparkie460
Well done mate , great achievement !

[Sparkie460]

Thanks @ molonski2. Now I get to spend the money I was using for the mortgage on major repairs like a new roof, windows and boiler

[molonski2]

Yes , well there is always that , but the repairs will also make things a little more comfortable too , new boiler will be nice , you must live in a cold climate?

[jahaims]

Yeah, to use it

[Anonymous]

No and no