How to live
A Cheap Lifestyle
Alternative Housing Options: How do you want to live for the next 10 years?
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hey guys it's John Paul here and if
you're thinking about buying renting or
moving house over the next 10 years
wait let me run you through a few
different options because you are in a
unique time of your life right now to
think how do I really really want to
spend my time and money on putting the
roof over my head here boy you're a
man-child so here in Australia we've
fallen into a trap thinking that there's
only really two options that we have in
terms of housing we can either buy a
house or rent the house or apartment and
we really need to think outside of the
box because right now here in Sydney the
price of housing is about eight hundred
and fifty thousand dollars on average
which means that people are engaging in
30-year mortgages that cost them about
fifty percent of their income or more
they're working 20 to 30 hours of their
week just to service their loans this
leaves very little less for their
relationship for travel for adventures
for doing the things that they're really
passionate about so I want to run you
through ten different options to find
housing in Sydney or to travel around
the world it's really up to you 10 years
of your life so here's ten different
options starting with the most
affordable considering things like cost
per week the percentage of your waking
hours that you'll need to service the
cost of that assuming that you're
getting paid around $25 an hour
considering that this is over the next
10 years so it's not forever and finally
considering the pros and cons of each
different way of living starting with
number one van life all right so this is
totally crazy not that many people do it
but some people do and they live
fantastic lives they travel around the
world in their own mobile home and what
becomes their home is really their
village or the
countryside or the beach or the city
that they visit the home becomes the
entire world pretty much now what does
this cost well most people start off in
a budget of $20,000 that means that they
can buy a van for about 10,000 and after
that they only really have to pay for
parking which usually people pay in a
combination of free or paid parking so
let's factor on paying parking for three
days a week so that costs around $79 per
week to service your initial loan and
also for parking
that's created four hours per week only
or four percent of your waking hours
assuming that you would actually sleep
eight hours a day that's really
affordable and the return on investment
is about five thousand dollars at the
end of ten years of you choose to sell
your vehicle what are the pros adventure
and freedom it's a lovely way to get
around the world or around your country
and so many people are doing it nowadays
is unbelievable the cons cold winters
van maintenance less privacy use having
to use public transport and potentially
challenges if you're looking to raise a
family in a stable environment there are
some people who raise their families and
travel around for years with kids but
it's not really for the faint-hearted
option number two tiny houses okay so
this is my choice on how I'd like to go
about things some a little bit bias
maybe but what we're talking about about
tiny houses is counting houses on wheels
or ones that are not founded on
foundation the great thing about tiny
houses is that are transportable to
different places so you can rank our
plans or we can own your own it's really
up to you
this is definitely the cheapest way to
own your own home and design the home
exactly the way you want it all right
the cost I factor on an average of about
$60,000 to get to your own
professionally built tiny home you can
do it for less or you can do for more
it's up to you and let's say you get
that on a combination of loans and
savings that will cost you assuming that
you also pay for a little bit of ranks
for the land that you pass your time
home on $94 per week to service the
rents and the loan that's four to five
hours per week or five percent of your
waking hours what are the pros firstly
affordable housing housing affordability
is a huge issue as we'll get into a
little bit later on tiny homes are
really a great solution to not only
cutting down your cost of living but
cutting down the amount of time that you
spend on your living expenses minimalism
so living in a tiny home forces you to
live minimally which could be a good
thing or a bad thing it's really up to
you location flexibility the ability to
move your house according to where you
want to live and where you have to live
which might be due to work or a moba
good choice what are the cons well you
have less space of stuff so if you're a
hoarder or collector maybe byzant the
best way to go for you also it's a
relatively new concept so rental
availability is rather limited here in
Australia at this point in time and
things like getting bank loans might be
really difficult to get finally the law
so right now tiny house on wheels or
that's not cited permanently if you
don't apply for planning permission you
can only really live in it legally for
about 90 days every year now that's
obviously if someone complains so you
know you can get all over it maybe
that's what I'm doing personally don't
tell anyone there is a risk that you
might not be able to live as permanently
as most people do in normal sounded
permanent homes
third thing backpacking alright so back
to adventuring
now this isn't for the faint-hearted or
for everyone but hey if you're young or
maybe even if you're old go traveling
it's a lovely thing to do you'll have
experiences that you won't be able to
get in normal century life and hey we're
just talking about ten years so go for
it
but one thing to bear in mind we're
backpacking is that you can choose to
backpack literally and go from hostel to
hostel if you want or you can choose to
rent out in the apartments in somewhere
inexpensive in the world like when
assadís or berlin for less than you
would be paying in sydney for sure the
global average for accommodation is $25
per night 175 dollars per week so that
equates to at $25 an hour 8:00 to 9:00
working hours per week to service or
eight percent of your waking hours the
pros you get venture and freedom you get
memories and experiences that you will
not forget and you have no weight has in
the positions that you honor those that
you carry in your backpack or suitcase
or whatever it is the cons well there's
no return on investment really what do
you pay an accommodation is a one-way
street
also minimal privacy potentially
especially if it's staying in places
like hostels to stay on the cheap and
finally you could have pretty limited
income on the road unless you're lucky
enough to have set up some kind of
massive income or local business from
where you're actually from to service or
or pay for the cost of you traveling
around if you choose to live and work
then you could end up earning much much
less than most other people
number four share housing
all right so most people think about
share housing as something that you do
only when you're young but you can do it
when you're much older and I know a lot
of people who are doing this really
really successfully later on in their
life the costs are renting an apartment
or house in Sidney per room is about two
hundred and fifty dollars per week on
average and that will equate to about
eleven to twelve hours of work per week
or eleven percent of your waking hours
what are the cons good housemate if you
have good housemates you have a good
time simple as that also access to
affordable housing in desirable places
so sharing house might mean that you're
able to afford to live in a really
really nice part of Sydney in a way that
most people who are renting or buying
their own house or apartment can't
achieve what are the cons bad housemates
also there's no return on investment
when you're renting so unlike buying a
tiny house or any other home purchasing
options you really don't get back your
money you only pay the money for when
you're renting and it pretty much just
disappears at that point number five
caravan or RVing alright so back to
travelling this is one of those out
there ideas maybe it's not for everyone
but hey a lot of people do it and they
have a great time doing it and they have
the freedom to be able to travel around
the country or around the world in their
own RV or Caravan one of the cost eighty
thousand dollars would buy you a decent
caravan or RV nowadays all right so it's
quite a lot quite a lot not a small
amount and factoring also that you're
likely to pay something in regards to
citing so I'm factoring on seventy five
dollars per week on citing assuming that
you're free camping some of that time
per week the cost per week is four
hundred and twenty six dollars on
average and that's about 19 to 20 hours
of your work per week or 18 percent of
your waking hours
so we're getting up there we're getting
up there but the great thing about a
caravan is that it is an asset so you
can resell it after your 10 years or
whatever it is you want to use it for
and caravans usually attract about a
forty thousand dollar return on
investment at this point in time by the
way that's the same that goes for tiny
houses well you're looking at getting
about fifty percent back of the initial
amount that you paid number six social
housing all right so this definitely
isn't an option for everyone
social housing is reserved for people
who are on low incomes we'll have some
kind of social disadvantage but if you
haven't looked at it then maybe look
into it it might suit your situation at
this point in time in Sydney the average
rental for a one-bedroom apartment or a
studio or a bed sets is four hundred
ninety five dollars per week and that's
for your own place that equates to
around twenty two to twenty three of
your working hours per week or twenty
one percent of your waking hours
potentially offset by government
benefits of course all right what are
the pros well you pay lower than the
average rental in Sydney and you get
social support services usually
surrounding you also having your own
apartment means pretty much the ultimate
in privacy you get your own space all to
yourself no housemates no anything like
that what are the cons well it's not for
everyone absolutely not for everyone
living in social housing means that
you're likely to live in a place square
aesthetically speaking it's less nice
looking maybe just my opinion but I've
worked in social housing for over 10
years and I personally believe that the
quality of social housing in Australia
is not really up to standard it pretty
much equates to cheap apartment living
in Sydney or around the country which
usually means not very high quality so
bear that in mind alright number seven
renting an apartment in Sydney and so
let's get straight to the point we all
know what this is all about let's be
honest there are huge variances in costs
in renting places in Sydney so this is
my attempt at going right at the average
alright the average rental costs in
Sydney is $700 per week that equates to
about 32 work
or 29% of your waking hours now 32 hours
per week of work assuming that you work
a full-time role of 40 hours per week
that's a huge chunk of your money going
towards housing so this is where I'd
like people to really really think about
what they're doing here renting in it in
Sydney is freaking expensive all right
what are the pros the desirability if
you can afford to live in a great place
maybe paying more than $700 per week
then you could live in a fantastic part
of Sydney and by living in a normal
rental property you have the option of
earning more than a lot of the other
options so discussed earlier in this
video so potentially you can reduce the
amount of time that you spend paying for
your rent by earning higher income than
$25 an hour but that might not be
possible for everyone all right what are
the cons short term leases now I've
heard about a lot of people getting
kicked out of their house because the
rent price has gone up and they can't
afford to pay the rent anymore so at the
end of a six months or one year lease
they're out of there they have to find
some wraps so that's not really
stability in my point of view also
increasing rent prices rent prices are
going up all the time and land owners
wants you to pay so if you can't stand
you're out of luck high cost of living
again going back to having to work
around 32 hours sometimes more sometimes
less to just rent your own apartment to
me that is absolutely ridiculous money
and it is one that you won't get any
return on investment for moving right
along number 8 building your own
permanence professionally built eco
house all right so this idea is a little
bit out there not too many people think
about it but it is an option eco housing
is becoming more more popular over time
and there is a growing industry here in
Australia to build things like
treehouses and earth ships and contain a
home prefabricated homes etc etc either
way this is a more affordable way to
build your own house whatever cost
$600,000 would probably be a good
starting point to build your
own house and cited on your own land
that you own so you're going to have to
get a 30-year mortgage here and at this
point in time that's like four point
five five percent so you'll end up
paying about 714 dollars per week to
service that that's thirty three working
hours per week or twenty nine waking
hours now the great thing about owning
your own home is that you get a huge
return on investment potential at the
end of ten years or whatever it is you
choose to sell it and my calculation is
that you'll get one point three million
dollars back after ten years if you pay
six hundred thousand dollars for a house
at this point in time all right what are
the pros eco luxury you could be living
in a beautiful beautiful beautiful
architect-designed home for yourself eco
housing means lower running costs over
the lifetime of that house meaning lower
energy bills lower gas bills etcetera
etcetera what are the cons well building
and financing eco homes is not as easy
as normal homes at this point in time
we're talking about issues of planning
permission and getting home lines there
are also a few eco inconveniences for
example you might need to reduce the
amount of energy that you consume in
terms of electrical power so if you're a
tech geek or somebody who likes their
gadgets and big TVs etc then you might
be out of luck also this is the first
option we're talking about that gives
you a massive mortgage all right now
let's not take this lightly a big
thirty-year mortgage that you have to
spend 714 dollars on per week to service
that's a lot of money and just like
apartment rental you could be spending a
huge huge chunk of your waking hours
towards servicing the loan and this
really raises the question is buying a
home or even renting an option only for
the rich now including number nine
buying an apartment all right so we're
back to normal now this and the next
option are your usual ways of securing
your own home through buying the cost
seven hundred thousand dollars would get
you an average apartment here in Sydney
Plus strata fees of course so at a
30-year mortgage at four point five five
percent that will set you back about
eight hundred dollars per week or thirty
six work hours or
32 waking hours per week let's be honest
that's a shitload of time and money the
great thing is that your ROI will be
about 1.4 million dollars at the end of
ten years alright what are the pros you
get your own place what are the cons you
lose your life in all honesty renting oh
sorry buying an apartment in Sydney is
really really expensive you're getting
two long-term debts and you'll get
strata fees all right finally building
or buying your own house at a cost of
eight hundred and fifty thousand dollars
on average in Sydney that will set you
back 1019 dollars per week that's 46
work hours or 41 waking hours now 46
work hours so if you work of normal
full-time job at 40 hours that's more
than you would normally earn so think
about that for a sec the silver lining
on this though is that at the end of ten
years your return on investment will
potentially be if housing prices
increase at eight point three percent
per year about 1.8 million dollars what
are the pros well you get to have a home
that you can call your own and that's
what we've all been brought up to once
you potentially also get lots and lots
of space and you get that reputation for
being a home owner and very importantly
you get the stability of owning your own
home what are the cons well plenty of
bills and ultimately the bank owns your
house not you until you pay it all off
it's expensive you get into a long-term
mortgage and you'll have no time or very
little time your four weeks of annual
leave for travel adventure family
friends and relationships and all those
nice things and also you'll pretty much
need full-time work with it alright so
thank you for listening I hope this has
been useful what I want to achieve out
of this is just giving an idea what the
different options are in your life and
how you can choose from a position of
knowing how you can do your own research
and find out what really suits you so
how do you really want to spend your
life over the next 10 years do you value
time relationships and experiences over
possessions and do you really need or
want to live in Sydney or could you
consider less expensive places around
the country ask me anything
like and subscribe thanks very much guys
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