Hi, I'm new to this forum and I am inspired by the many success stories i have read of Humble beginnings and determination to eventually achieving financial freedom!
I am a late starter and been keen to buy our first home. I am the sole income provider and we have 2 children. We have been renting for the last 8 years.
Because of our commitment to pay off credit cards and other loans, we struggled to save for a deposit.
After alot of will power and determination, eventually we manage to save about 15k and I recently decided to do some hard core research on our First Home...but it left me even more confused and dismayed.
I earn around 85k and with that income the bank says I can take a conservative loan amount of <385k. Then she started crunching numbers and my hopes just Shattered. Our deposit now seems like piggy bank savings compared to what is expected to fork out on the extra costs plus the deposit. It would be a struggle to pay off the loan repayments of $530 (ATM we pay rent of $380)
Are we doomed to pay rent to someone else's mortgage for the rest of our lives?
Then I came across this forum and somehow there seems to be a glimmer of hope.
My question is this, is it a wiser move to purchase a more affordable unit as my first IP and continue with renting.
If so, what price should I be looking at considering my goal is to get a positive rental yield( I can't afford to fork out any gap) and still be able be able to achieve a good CG in the near future and eventually get some equity for my First home?
Please forgive me if my questions seems trivial and completely amateurish. I am super new in this, as I write this I am still referring back to the glossary of abbreviated words like LVR and CG!
Anyone have been in similar position like me or have any tips for a first time future investor? After the many late night reading of this forum, I am so keen to start somewhere....but where and is it possible?
I am a late starter and been keen to buy our first home. I am the sole income provider and we have 2 children. We have been renting for the last 8 years.
Because of our commitment to pay off credit cards and other loans, we struggled to save for a deposit.
After alot of will power and determination, eventually we manage to save about 15k and I recently decided to do some hard core research on our First Home...but it left me even more confused and dismayed.
I earn around 85k and with that income the bank says I can take a conservative loan amount of <385k. Then she started crunching numbers and my hopes just Shattered. Our deposit now seems like piggy bank savings compared to what is expected to fork out on the extra costs plus the deposit. It would be a struggle to pay off the loan repayments of $530 (ATM we pay rent of $380)
Are we doomed to pay rent to someone else's mortgage for the rest of our lives?
Then I came across this forum and somehow there seems to be a glimmer of hope.
My question is this, is it a wiser move to purchase a more affordable unit as my first IP and continue with renting.
If so, what price should I be looking at considering my goal is to get a positive rental yield( I can't afford to fork out any gap) and still be able be able to achieve a good CG in the near future and eventually get some equity for my First home?
Please forgive me if my questions seems trivial and completely amateurish. I am super new in this, as I write this I am still referring back to the glossary of abbreviated words like LVR and CG!
Anyone have been in similar position like me or have any tips for a first time future investor? After the many late night reading of this forum, I am so keen to start somewhere....but where and is it possible?