Hi Guys,
I remember reading a while back what is considered the max percentage of your wage should be allowed to pay off a mortgage. As i will be looking to make my first puchase over the next 12 months I need to start considering. I earn approx 60K a year in Adelaide.
You need to work out TO THE CENT what your budget for living expenses is per month.
Every expense, spending money, pertol, insurances, curent loans, credit card balances; the lot.
After you've worked out what you can live on after tax, then you will have a figure left over for the mortgage.
Don't forget to include all the loans into that figure.
In my opinion, if your income is $60k, you wouldn't want to go much over 35% of your income for all loan payments, otherwise you will have no lifestyle.
Have a look at this site:
HI Marc,
Thanks for taking the time to respond. I have a savings plan in action, but it could be a little more aggressive. Currently only putting away $800 a month for a deposit, with a little over 12K in cash and a further 10K in stocks.
I can track my spending down to the cent, but its the things I will have to pay as a homeowner I struggle to budget for. Water rates, taxes, levies etc etc. I am a renter now so only really pay the elect, gas, phones and house contents insurance.
Working out what I would be in for if I were a house owner would make my situation easier.
Overall I would like to stay out of the market for now, with how volatile things are currently..From a lender's perspective, they will allow you to borrow roughly 5 times your annual income – including rents. Very rough guide.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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