If you cant afford a car or rent. You can rely on the government !!!!!!
ABS says house prices have fallen
- Thread starter Tehanu
- Start date
If you cant afford a car or rent. You can rely on the government !!!!!!
You couldn't borrow that much on 30k.
If you buy on much less, the risk of default increases dramatically. You also need an interest rate buffer. Assuming repayments are about $800 per week, $600 per week is a decent amount of money for living expenses and putting extra into the mortgage.
I'm also assuming you'll rent out the rooms making it even more attractive and paid off faster to the point where your rental income would meet repayments if you re-finance.
I don't see much point from a making money perspective in buying something you can only barely afford and will never pay off and just hope you are never out of work or that interest rates hit 10%..
All those people saying you should buy a complete dump on a low salary... well, that may have worked back when those dumps were actually cheap.
250k for a 2 bedder x-commish housing unit is a waste of money an even bigger waste b.c u'd never be able to rent out a room in it.
IF you want to be a slum lord and hope to make money on the sale of it in a couple of years, that is a different story, but they're not POPR material for a home buyer. The value for money just is not there.
Buy a proper house, where you can rent out rooms and have a decent backyard is the only way to do it.
I have said it before, and wonder if you even read it. My son borrowed $292K on a salary of $38.5K, with offers from two big banks.
This was based on a lease being in place. Rent was $280pw (I think market rent would be $320) and his repayments are just under $400 per week.
I know I shouldn't engage with you because you just don't want to hear this stuff, but there you have it......
And that last bit is EXACTLY why you will never do it. You just are not thinking outside the box. Your narrow mindset is holding you back.
But you know that, don't you?
what is it with the room argument? why don't you understand that no family, no matter how big or how small in ANY PART OF THE GOD DAMNED WORLD rents out a spare room willingly. it's called "personal space" and does not adhere to economic theory 101.
they only do it for cash needed or to help out a friend or relative.
you can tell it's a student on the keyboard talking from a sharehouse perspective.
the "decent backyard" the the land component talking. land is the underlying issue here - always has been.
is it possible you're actually listening and learning instead of spouting uninformed opinion of your economics lecturer?
Got any evidence that economists are poor? Methinks punters with degrees in economics earn more than the average.
They probably do. The question is whether they manage to amass more wealth than others who earn similarly but in different fields.
I know several economists, and lots of accountants, and other than a couple of accountants who are partners in big 4 firms, none are what I would call rich, or even appreciably better off than any other professional.
Fine effort. Both No true Scotsman and burden of proof logical fallacies in one post.
Leave out the bit about guarantor nicely and the fact it is interest only don't you........ and the bit where you'd help him out.....
I don't put much faith in boarders.
The way I see it.
If you earn 1400 a week. 800 goes to the loan. You have 600 left over. You put as much as possible of that into the loan. You put in an extra 300 a week from renting out rooms into the loan too.
That means you are paying off about 57000 - 77000 per year ($200 per week to not die).
Beats the hell out of a 30 year interest only loan where you depend on a freakin boarder to make the payments. Your son should be living at home cheaply (instead of buying fancy cars) and savings a 70k deposit to put on a house, instead of prescribing to the MUST BUY IT NOW attitude and buying a house on 38k a year without even having a deposit. Probably a shitty unit too that will only drop in value or underperform the market.
Actually the unit is quite nice, quite spacious, and the identical one under it was valued two years ago at $320K so I think he has bought very well. His little bit of elbow grease and a new bathroom will bring the value up. It is a good value, solid 70s double brick unit with lovely breezes and a very nice outlook over the suburb in three directions.
He has actually bought a demo model car to replace the big mistake he made on buying his "must have" European car. He will lose on that, but it is a good lesson. This "demo" car will be cheaper to run (diesel), cheaper to service and he will not have to wait for expensive parts, which he has had a taste of already with the first car he bought. I tried to convince him to buy a two or three year old car, but he didn't want to buy another "lemon". Buying a demo model meant he only paid the same as he would have for a two or three year old model anyway, so it is hardly a "fancy car" and probably fairly sensible.
If only he had done that for his first car. But young men will be young men....
You sound bitter.
So far you've told me your son debt financed a brand new car he couldn't afford and had to sell and got in over his head, then you bailed him out so he could go into more debt and buy a house he shouldn't be able to buy and can't really afford (especially without depending on a boarder).
Right...
Whatever happened to saving ?
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