I'm going to be as simple, open and brutally honest as possible… I would like to introduce myself,
I'm 26 Years old, I'm a graphic designer by profession, I've just landed a new job, after all my travels, I would love to move out of home preferably a two bedroom house by the beach Chelsea area (close to work). Now i have no idea in real state investing, all i know is that i have allot of faith & I'm craving to get my own house. Now i have done research in regards to the value of properties in the Chelsea area which are 200K + let's just say my income is 30k annually what can i get for something like that?? advise will be greatly appreciated!!!! many thanks.
If you earn 30K you can afford a home of MAXIMUM 110.000 AUD$.
Please stay with 'momie' for a little longer, you really don't want to burn your little designer hands on this crisis.Bush in 2002 : "Poor people should be able to live in a house just the same as rich people"
Bush in 2002 : "I have told Fannie and Freddy to lend more money to poor people so they can buy a home"
Bush in 2008 : "Oh fuck , our economy is completely ruined, what the fuck happened ?"Monkey say , monkey do. Then monkey realize that poor people maybe cannot afford a home after all.
Maybe a shared (rental) house arrangement would suit while you build up a deposit and hopefully increase your salary over the next few years
hehe thats great advice thanks for that!! much appreciated
if you need any advice in the love,general department let me know thanks guys I'm open to listen… lol or if u need any Graphic design work ! anyway thanks again any help is a bonus
Build up a deposit, wouldn't be surprised if you need a 20% deposit on your mortgage soon.
Credit is tightening, houseprices are tumbling ( already dropped 10% in perth and 30% in some area's in Sydney ) but that's just the start. In 6 months you will be able to buy a lot more for the same cash. That also gives you time to build up a little deposit.Scamp wrote:Please stay with 'momie' for a little longer, you really don't want to burn your little designer hands on this crisis.Come on Scamp, I don't care about your views, but lets treat new comers to this forum with some respect
The fed govt. starts its first home saver thing next month. They'll give you $850 each year if you put $5000 in an account. Small numbers but guaranteed 17% interest on $20000 over 4 years. Better than the banks are offerring.
Downside is you have to wait 4 years to use it as a deposit. Unless you have a partner ready to but, then you can add your savings to theirs.
Add that to the $7000 FHBG and its $30000 which is enough for the bank to let you get any $300000 place. Has to be a PPOR though.
lol yeh scamp!
thanks ummester
Here's an idea Benny. A young professional like yourself probably knows heaps of young single people. They don't want to live at home but can't buy their own home. This is a scenario where someone with balls and clarity of vision can get ahead.
Buy a house. Get lodgers in at $100 a week for example and use their lodgings to help pay the mortgage. Buy an affordable house with a few rooms. Don't get greedy.
The other thing you could consider is stay at home and buy a property to negative gear. In 5 years you may have built up some equity and had time to save up a depositI would work on laying down a savings plan and a goal of how much you will save by 6 month, 12 months and work on the budget to cut back on everything you can including different mobile hone plans, bills, bank account fees etc etc every little thing and start from day one TODAY.
Write in down on a goal today. Pin it up on the wall show mum and tell here what you plan to do she might even help you with some savings if you show you comit to it after a while.
Then in the meantime. Start looking through and searching for houses you will get one that is less then 200k if thats the going rate. Since you are a designer you will have a creative eye, view the property as a blank canvas and again be creative as to how you can increase the value of the property by adding value with not using much money. Research more in this forum about that. As it is improtant to making the money.
You might just want a house to live in but why not make money at the same time. We are not the US and do not nearly have as much economical problems as the us. the problems most people come into comes down to budget people are just way to spoilt so if you know your plan and your own budget and you do the numbers to what you can sustain within that budget then you are one step smarter the millions of people that lose there house because they buy smoke, beer, petrol, they drop into the shop on the way past to buy a picnic and the paper and a packet of chips then a few gadgets and run up high power bills, then they get hungry and go to Macca's to fund Mcdonalds investments with $10 worth of burgers and all the other hundred of things peole can waste there money on. Then finally they get home cry because they have to sell there home because hey have spent all there money.
That was a long paragraph you get the drift…
Another idea in a similar direction to what CHIS suggested is finding a couple of mates and go thirds in buying a 3 bedroom place. This way the banks will look at 3 incomes to service the loan. Depending on the interests of the different parties can come to an aggrement to hold it for a set number of years and then sell and use equity to buy your own. Or it could be a start of an investment group for later years
If you are really committed put $200 a week into a savings account straight out of your bank account automatically.
If you can do this for 2 years you will have $20,000 saved up not including the government home savers account co-contribution.
Plus at the moment $5000 in term deposit earns 8% p/a interest.Do not go on any more holidays and do not buy anything that goes down in value like $20,000 cars, ect
If you have savings already then you could buy something smaller or further away in the $110,000 range and put a tenant in it and live at mums and put every spare dollar into paying it off.
When you have paid off a good amount or it has risen in value you can either sell it or use it as co-lateral for your house you want.
It is extremely hard these days to get into the property market but if you start small it is easier than trying to pay off a $220,000 mortgage.A $90,000 mortgage costs $200 a week over twenty years to pay off.
A $110,000 mortgage costs $245 a week over twenty years to pay off.
A $220,000 mortgage costs $490 a week to pay off over twenty years
based on a 10% interest rate for a worst case rate.You may be able to do a joint investment with a really good friend who you can stand living with.
This way the loan would be $110,000 per person and you can both contribute to paying off the loan quickly.
If you both had $40,000 deposit between you both the loan would be $90,000 each.Much apprecited !! thanks thats brilliant!!
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