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i think the figures you based this on are per week but my post states that the rent i pay is per month, as i now pay just over 1k per month in rent, we are looking to buy a property in the west, sunshine , hoppers xing, caroline springs area, thanks Neil
duckster wrote:Neil,
Another way of going which is what I have sort of done is you buy a lower priced house say in Cranbourne around the $240,000 mark and travel into work on the train. The loan repayment would be approx $610 a week and it costs about say $100 a week for the train. so you are $290 a week better off. If you put the extra $290 onto the loan repayment you will pay off the house in may 2019 with total interest at $194,000. Where as if you pay $610 a week interest would be $336,000 and it would be paid off at may 2029. This is based on 12% interest rate rather than 9% as interest rate at a possible worse case scenario.The main thing is to get your foot into the property market as property values go up while you are trying to save the money and rents are going up where as the mortgage payments stay the same if you calculate the worst possible scenario of what you can afford . Like say a 16% interest rate the repayment is $770 a week. Or say a 18% interest rate the repayment is $855 a week. At 20 % interest rate a $240,000 loan is still cheaper than $1000 a week.
Hello , thanks for your ideas, i don't know much about state laws & regulations regarding this situation, but i can tell you some things that may help, i am based in Victoria i have almost 30 k saved & not sure how best to go about it, whether i keep saving ,the thing is i am paying 1k p/m in rent now. the bottom line is i desperately want to get out of the rat race, but can not afford the high repayments on a loan, i know the old saying is you can't have the whole cake & eat it too, but i am just looking to see if any one can best advise me as to which way i should go, any one with help in this regards would be very much appreciated Regards Neil
