Hi ….
Recently I received 60,000 inheritance.
At the moment I have it stuck in some bank earning 4.75%.
I am a single mum, not working. Renting in Sydney, it’s killing me ! ! !
Income: I receive no child support – only $350 per week pension.
None of the lenders I have approached are game enough to touch me, am I looking in the wrong places.
Should I give up the idea of ever owning a home of my own, let alone investment properties. (Till bub is old enough for me to go back to work, at least)
You have a difficult situation.
I think the term positive gearing is important to you. Whatever that money does, it has got to be a tool for future opportunities.
It’s a difficult market for positive gearing now but it is possible. I would have recommended a unit or two in Cairns but they have jumped a little bit.
In this market, there are few options for you, especially in Sydney. Whatever you do, be patient and look thoroughly. For you, it might take only one good investment to send you on your way.
Seeing as how you receive no child support I would envisage that you are not tied to staying in Sydney. Why not move somewhere like Perth where properties are still affordable but are also aprreciating well all the time. FOr under $300,000 over here you can get a home on half and acre (great for kids) with panoramic views of the city (cheaper for just valley views or none) and about 25 minutes from the city….
Don’t tell too many people though!!![8D]Thanks guys,
Yeah Sydney seems a little out of my league.I have family in Grafton, so I am looking up there, still seems a hard road, lenders are just not too welcoming to single mums with no job.
Again Thanks
ps just reading this site is an inspiration.
Hello there,
You are not dreaming. You have to work out what is important to you most. Firstly if it is owning your own home, then you will need to contact someone who can help you attain this. If it is investing, then maybe a joint venture would be possible with someone who is willing to pay you more than 4.75% interest. I will be forward and say that I can try to help you with both options.
cheers [
]Hi there,
There are houses around in your price range if you look hard. We recently purchased a 3 b/r brick house at Tamworth {ex dept. of housing} for $69000. Spent a little on renos and it now returns a healthy rent of $150 a week.
Keep looking and dont give up.
BedeanHi there single mum
I am in a kind of similar situation as you – I can’t afford to buy where i want to live (inner city Sydney) and as a freelance self-employed muso I’m probably the average bank’s worst nightmare, hehe,
but like you I had a lump sum to start with, and after discussing it with Steve he suggested I buy with cash to buy a cashflow-positive property, get it rented, *then* go to the bank to get a line of credit against it. (use a good, recommended broker, because they know about all the non-conforming lenders too, or whatever you call them – they charge a bit more interest but they do lend to people the normal banks won’t.)
Anyway so let’s say you bought a 60K house somewhere as a rental, then you have the asset itself plus the rental income to show the bank. OK the amount of cash you have will limit the kind of place you can buy, and the areas, but I think there are still places available in Australia for under 60K that are CF+ve.
So let’s say they give you a portion of the value of the property as a line of credit, you could then use that as a deposit to get your next one, and so on.
It’s just another way you could do it.
Oh yeah, and I am still renting, and perfectly fine with it, my rent is partly tax deductible as I do my business from home and commandeer two rooms for the purpose….I have to be in the city for what I do anyway – also, my boyfriend and I calculated that if we bought the house where we live on a ten percent deposit (yah RIGHT!) we would be paying about 800 per week MORE than we are paying in rent. Also, it’s not so tax deductible etc if it’s your own house I think…???
I am pretty sure that even millionaire property moguls sometimes still rent their homes for that reason.
cheers-
MiniTiraJayne
Even if none of this advice helps you right now, NEVER stop dreaming.
One step at a time will get you there.
Cheers
Leigh KRead, learn, grow but most of all do it.
Hi TiraJayne,[
A syndicated investment (where you go into an investment with others into properties such as aged care or student accommodation) would be a solution. This would give you positive cashflow and may solve your problem.Bryce Inglis
Ph: 03 9530 2111
http://www.ipal.com.auHi ….
Recently I received 60,000 inheritance.
At the moment I have it stuck in some bank earning 4.75%.
I am a single mum, not working. Renting in Sydney, it’s killing me ! ! !
Income: I receive no child support – only $350 per week pension.
None of the lenders I have approached are game enough to touch me, am I looking in the wrong places.
Should I give up the idea of ever owning a home of my own, let alone investment properties. (Till bub is old enough for me to go back to work, at least)
[/quote]
Hi TiraJayne,
I think there’s some really sound advice given. I know you hate renting, but you really need to have a good think about buying an investment property which will give you instant positive cashflow, versus buying a place for you to stay in.
Firstly, if you can’t borrow any money from the bank, you can really only afford a $50,000 house (plus stamp duty and conveyancing costs). Can you really buy anything decent for that price?
And if you could borrow some money to add to your inheritance to buy a nicer house, have a think about what happens next – you’ll spend the next 25 years paying off the mortgage, since you’d already spent all your inheritance in the one hit.
On the other hand, if you use the inheritance to buy an investment property and install a tenant, you now have income! This makes you just a little bit more bankable, which would allow you to use your 100% equity in your first property to buy another positive cashflow investment property. And so on and so forth (only go as far as you are comfortable and able to). Once that’s done, you’ll have some passive cashflow, which will make live easier.
Of course, that’s not for everyone. But that’s what I’d do.
That’s my two cents worth.
All the best!
MIn someway Thank You doesn’t seem to say it – but that is what I would like to truly say to these people who have responded.
I am glad I came here and thought – ‘well it won’t hurt to post/ask’.
I recently visited the accountant who has done my tax returns (for the past 5 odd years) and while he was fixing my return I asked him “what should I do with the money”. He was in no way interested in offering any advice, this really puzzled me, and I thought – Ok I have to sort this out myself – next I was almost abducted by the bank manager where I deposited the cheque. I was not happy with the rate that was offered there, so I did some looking and found another bank (a/c) that offered the 4.75%.
This can’t be the way to make money ! ! !
So next I stumbled in here.
Your messages have inspired me to – keep looking for better options and opportunities. I was hesitant to looses the first home owner grant, but now after reconsideration it maybe the best option I have.
Again Thanks
HI Tira Jayne
I was single mum when I bought my first home so I thought I’d share my story.
I was on a pension after my divorce with a grand total of $2000 after the settlement
Not eligible for FHOG I got a crappy part time job and saved every dollar I earned for 3 months to get my deposit, then I went to the government sponsored lender in WA, Keystart, and got my loan. They would let me use centrelink income and 100% of part time wages for income assesment. NSW may have a similar scheme.I quit that awful job the day after we settled!
For $65000 I got a nice house in a run down suburb but it was not too far out of town. I lived there for 3 years before moving out and renting it out for a rent that was more than enough to cover the mortgage repayments and I just sold it for a very healthy profit.
For me living in my own home is more important than investment property, I just hate renting [
] maybe you don’t mind because it puts you in an area you love but can’t afford to buy in.What you have to consider is the centrelink income and how it would be affected by a) income from an IP, and b) losing your rent allowance if you move in to a house you are buying.
IF you buy an IP using all your cash and rent it out will you have enough income from your parenting payment to cover any repairs or emergencies? What will you do if the hot water system needs replacing or bad tenants trash it? A cheap property will probably come with a risk of needing attention sooner rather than later.
Contact me if you wish, [email protected]. I’m no property expert but I was on the single parent-go-round for a long time [
] I might have some ideas for you.
]
] I might have some ideas for you.The topic ‘60k – Single mum – dreamer ?!?!?’ is closed to new replies.
