Student buys first home for $1.094mill

[i-need-a-martini]

Not sure about other states but Sydney house prices have gone a little crazy in the last year and a bit.

Last weeks paper said that the average house was now $740,000. I am seeing it around me -  a dump of a house down the street sold for $1.1mill last week. The guy only bought it 5 months ago for $949,000. And this isn't exactly a swish neighbourhood.

But how does a student afford the repayments on a house over a mill??

http://smh.domain.com.au/real-estate-news/milliondollar-first-home-20131026-2w8ch.html

[imastawka]

If you watch the interview with said student, she says mum and dad bought it for

an investment and she's going to live in it

[the_bob_delusion]

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@imastawka wrote:

If you watch the interview with said student, she says mum and dad bought it for

an investment and she's going to live in it

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Ditto. Pay attention Martini. 

[i-need-a-martini]

I didn't watch the film. 

I took my cue from the article - the text said ‘‘We knew we had to contribute and try and make this happen for her,’’ Mr Crause said. That sounded like they were helping her, not payijg for it outright...

[cosmosgrove]

I can't fathom how anyone can afford the repayments on a million dollar house, do city wages really pay that well?

[*crikey*mate*]

trust fund

inheritance

[imastawka]

Drug Barons?

Possibilities are endless really

[cherry*135]

A lot of homes in Sydney in that price range and higher are bought by overseas investors (Asia). I think there was one sold recently for $10m, that the father (lives in Asia) bought for his kids to live in while they study in Sydney. It was newish,with harbour views.

[cherry*135]

We have houses in our little town (1.5hrs sth of Sydney) that go for $1m and above. Although the market has cooled down in recent years so a $1.5m house a few years ago may sell now for just over $1m. The buyers are from Sydney.

[crystal-gems]

The parents purchase the house as an investment (with a mortgage).  Charge their child minimum rent.

This enables them to write off the mortgage interest payments, repairs, rates, etc against the income at tax time.

A nice little earner for the parents.