Looking for advice on where/how to start.

[starchee]

I am looking for some advice, I have booked some time with a financial advisor but I believe multiple opinions are better. Hope someone can offer some advice!

I have no savings, I have been 'saving into my mums mortgage'. I am 26. Single.

At the moment I clear 2900 a month after my super contribution (100$!) comes out. Pay rise soon too, yay. My rent in an inner Sydney studio is 900$ a month. I can walk to work in 20 minutes, and I really don't want to give that up. I only have electricity and mobile phone as expenses.

I have considered buying a 2br unit out in Lakemba, Auburn, or Wiley Park. Ultimately I don't want to pay more than 160k and it needs to be on a train line. I don't care what I live in. Dingy little crampholes are fine. The reason why I need something so cheap is because I need to continue paying my mums mortgage - 1000$ a month covers her safely. She has 160k left on it - after a few refinances for stuff - a very lucky story buying in Kwinana in WA and mmm.. house and land was 140k, and 3 years later BOOM the house is valued at 350k+. Good on you train line

I am eligible for first home buyers, but the living there thing is bad. I considered buying property and not living there, but its hard to give up a "free" 7k.

As I see it I have 6 options.

1) buy & move out to Lakemba for a year
2) Pump money into my moms mortgage and pay it off heaps early
3) Buy investment property and not live in it. Rent it out.
4) look at other investment options, shares etc?
5) save save save.
6) combo of the above.

I am frustrated with where I am now, and want to get started on my own financial future. Any advice would be appreciated.

 

[Twitch]

Paying $1,000 a month on your mums mortgage is clearly hurting your ability to save. Can I ask why you are doing this?

Given you have no savings, what is most urgent is the need to pile up some savings. Broke people don't need to be buying houses as what tends to happen is Murphy moves in soon afterwards.

My advice is save save save. If you don't need to touch it for 5+ years put the savings into an index fund.

 

[duckster]

deposit from loan

You have 120,000 k of equity sitting in your mums house that your mum could possibly lend you by obtaining a small line of credit loan for the deposit for the investment house. $160,000k investment house say 30% deposit equals $48,000 loan . Why 30% because you need to pay stamp duty and legal fees.
What you need to work out is can you afford the repayment based on say a 12% interest rate to be safe and factoring in rent income from investment property minus property expenses. Also you need to factor in what happens if your rent goes up.
Or live in the house and pay it off to a point where if you rented it out it would be cash flow positive and cost you nothing to hold it.

Or live in mum's house and pay it off faster and then get a loan off mum.