Practical Solutions for Younger Homebuyers

MelbourneFHP

At James Buyer Advocates we are looking to help younger homebuyers where we can.

We now believe in a PAUSE in rapid population growth through immigration (family reunions excepted) from 2020 to 2025/2030?

Why? We would like to see our community have a discussion and consider infrastructure solutions to better house our young people, who already live here.

When our community thinks it’s right to go again, press the migration re-start button.

We continue to support and feel we should improve our actions with refugees and overseas aid.

Our current tax laws are really hurting young people!

When our negative gearing tax laws allow me to buy a $million home with $8,000 after-tax dollars and no deposit AND yet that same home would cost a young couple $50,000 in after-tax dollars and a 20% saved deposit, then we have major inequities and unfairness in our Australian society.

Tenancy laws

Whilst we act for investors and acknowledge there are problem tenants, we also feel that no-grounds evictions and unreasonable rent rises adversely affect the psyche of many younger Australians whose only now, is to rent. It also weakens the argument that “carte blanche” tax incentives to investors are good for renters.

However, many in our community do not agree with the above sentiments.

So, we at James Buyer Advocates are looking for and presenting new ideas on a micro basis, for making significant changes to the way young people are “housed” in the future.

We think there are better solutions to house young people, than an isolating 52nd floor, a divorce enhancing mortgage or an infrastructure-free zone, 6 miles west of Woop-Woop.

Our plan is simple –  to practically show and encourage you – including plans, costs, council battles – many of the issues we run into with our project to house 5 on a 700 sqm site in .

  •  (feels like a home)
  • Position (near an Inner train station and within cooeee of each other and no 60/90 minute, times two, daily work commutes) and;
  • Price (mortgages that don’t kill families and ruin health)

We at James are helping a number of families at least discuss and plan. Some families we have begun buying for.

One (not the only) possible solution: why not live together, but also live apart – it’s a century old idea, can it work in ?

  • Grandad helps looks after grandchild for son/daughter, while son/daughter earns money to help look after grandad and grandchild.
  • Like the Greeks, Africans, Indians, the Jews/Arabs and Aborigines sort of do – like the Anglos, Americans and some Aussies sort of don’t.
  • At times families want to live together and at other times, families are the last people any of us want to see.
  • But if we are all going to eventually live in smaller spaces, why not have a family as your neighbours – OMG – separate entrances and privacy – but some communal living.
  • Protection of family wealth – a family farm concept can be 1000 acres in Horsham – can it be 700 sqm in Bayside and then possibly, other sibling farms coming off this one piece of wealth?
  • Inner Melbourne is regarded as one of the most liveable cities and with all my travels, I agree (for oldies). However, for young people, it is fast becoming one of the more unliveable cities, due to mortgage/traffic/future fear stresses.This will only get worse, if we oldies, don’t wake up; put our bank accounts, super fund balances and growing old fears to the background of our minds; and bring our families into the foreground of our hearts, by finding ways for the young and the old(er) to work and live together in meaningful and happy ways.

At the latest meeting with young architect student James Hayward, on-site at the Bayside block we discussed:

privacy and divorces and communal sharing of solar, carpooling and laundries -

whilst separating entrances and individual family living spaces

and not being fortune-tellers we mostly talked about the ability to build flexibility into the future.

Possible additional 3 homes to make 5 family homes on Bayside site

Possible additional 3 homes to make 5 family homes on Bayside site

We are trying to bring you practical ideas and coverage on how we can all help our young people, better house themselves.

Over the next months, you will see plans and issues with:

 

James Hayward and Mal James discuss initial planning of 5 family homes on a 700 sqm site in Bayside

James Hayward and Mal James discuss the initial planning of 5 family homes on a 700 sqm site in Bayside.

Housing 5 families on a 700 sqm site in Bayside.

This is what we call the James Melbourne Family Home Project.

Current Housing on James Family Project 700 sqm duplex Bayside site

Current Housing on James Family Project 700 sqm duplex Bayside site

YHBG2In 2014 – The Age. , James Buyer Advocates Young Homebuyer series is designed to take homebuyers through the entire homebuying process from the inside. The article series has become the biggest read online series of its type. It has been published throughout Australia and internationally.

Article One: Good Home and Bad Homes – Simply your decision. Glen Iris gain a $million – Southbank lose a $million CLICK HERE

Article Two: Clarity Plan – PPP’s – get the best out of now  CLICK HERE

Article Three: Futureproof your plan FFF’s and put a $million into your pocket – CLICK HERE

Article Four: Due Diligence. Boring but very profitable. Great hourly rate work – CLICK HERE

Article Five: Value Concepts that can work for you – CLICK HERE

Article Six: Practical Valuing – CLICK HERE

Article Seven: Negotiation at the Pointy End – CLICK HERE

Article Eight: Walking the Walk - below

So the talk is over, now its time to walk to the walk.

For 20 minutes a week over the last 7 weeks of this series you have been given the keys to a happy homebuying life.

You have been given a million dollar gift as promised.

Question is; will you take that gift, open the door and walk into a life of reasonable affluence or will you remain a victim of your upbringing, your educational environment and your everyday habit energies.

Right now it’s your choice.

Are you are chocaholic decision maker/homebuyer or do you have inner gumption (love that word) to do the right thing for you and your family?

My after dinner routine goes something like this: around 8.00pm I feel like a chocolate – I tell myself that I’m overweight and that chocolate is not helping me, but then I go to the fridge, get a chocolate and eat it.

I’ve received a cue, I’ve made a decision, I’ve acted and I have achieved an outcome.

I’ve made a decision, but is it a good one?

Is making a decision on buying a home for you much like deciding to eat a chocolate?

Or are you prepared to break your habitual chocolate cycle by making some good decisions?

A quick recap on what we’ve learnt

  1. There are good homes and bad homes for young homebuyers. Southbank v Glen Iris.
  2. Your good decisions, nobody else’s, will get you the good home. The internet is not a solution, you’re the solution. The selling agent is not the problem, you’re the problem.
  3. A good FFF AND PPP plan for 10 years rather than just your “PPP Now” plan will give you lots of free money
  4. Try and buy an older home in Inner Melbourne with land and ok floor plan to live in for 20 years. As you go through the 9 stage life cycle, from no kids to young kids to older kids back to no kids again and you will receive a million dollars (tax free) by doing nothing. It will eat your super for breakfast.
  5. Go through the proven due diligence process BEFORE you buy – its great hourly rate work.
  6. The only person that decides good value is not me, not the agent, not your dad – it’s YOU (providing you are informed)
  7. Engage a suitable experienced professional, such as a buyer advocate to Value and Negotiate for you.

What’s this $1,000,000 in my back pocket for free stuff again Mal.

Apartment In 2000 a young home buyer bought an apartment in Docklands at 15 Caravel Lane for $507,500 and resold it for $576,000 in 2014.
Money in your pocket – Zippo

Inner Melbourne Around 2000 a young home buyer spent similar money on a family home in Celia Street Glen Iris $493,000 and sold again in 2014 for $1,500,000.
Money in your pocket – $1million

Outer Melbourne Around 2000 a young homebuyer bought Barrington Drive Pakenham ($134,000 around 2000 and resold for $285,000 around 2014).
Money in your pocket – not much, especially if you now want your kids to go to school near Glen Iris.

Lets deal with the excuses as to why you cannot be the Celia St buyer.

Excuse 1) I don’t have any money – I’m struggling to get a deposit and once I do then Barrington Drive (Outer Melbourne) is all I can afford?

Do not make this excuse please. Read these books please.

  • The Millionaire Next Door – Thomas J. Stanley, William D. Danko
  • Your Money or Your Life – Vicki Robin Joe Dominguez

Excuse 2) I’m an unlucky person – my lot in life is set and I can’t change.

Do not make this excuse please.

  • Youtube Tony Robbins or read some
  • Thich Nhat Hahn Books – both very real and ethical motivators.

Excuse 3) It can’t be this easy – it has to be hard to buy well and make a million dollars.

Do not make this excuse please. Read these books please.

  • Read the Australian Author – any Jan Somers property book or
  • Brian Tracy (Goals)

If I can leave you with my strongest six pieces of homebuying wisdom

  • Happy life – happy wife
  • History repeats itself unless you break the cycle by breaking your habit energies.
  • Good decisions and bad decisions take the same amount of time and angst – only the quality of the prep is different.
  • Time heals or hides nothing in Melbourne property, it only accentuates.
  • No definition of value maintains its rigor for all men and women accept value to you.
  • In negotiation the closer you are, the more you talk about money and the more you talk about money the further you drift away from getting what you really want.

Thank you for reading and good luck never hurts, so good luck to you all as well.

Thank you’s for a lot of people that helped put the Young Homebuyer series together.

The idea’s girl and driving force behind me writing it: Eileen Berry

My editors: Jane Hutchinson and Karin Derkley

Key Publishers: The Weekly Review – Eileen Berry. The Age – Alice Stolz. James

And finally thank you to the hundreds of wellwishers, phone callers and note senders supporting this series for Young Homebuyers.

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