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


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


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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