My sister has just signed a contract for her first ever house! [biggrin]
It’s just a modest little 2 bedder timber house for $80k.
She has previously been renting a house for $120pw but she knew the rent was going to rise again soon. Her wages pa are approx 29k and she has a 15yr old daughter to support.
What really makes this amazing is that by getting the FHOG of $7k and adding $1k of savings, she only has to borrow $72k. She has enough savings to cover the insurance, legals and loan costs herself. The repayments on the 30yr P&I loan at standard variable rates are only $460 per month or around $106 per week. Council rates are around $1000pa or $19pw.
So essentially, my sister has a free house![cap]
If you want to get out of a hole, first stop digging.
Hi Brenda,
great story… but i dont see how the sums, work out and add up to a free house… but great to hear the excellent news for your sister.
Cheers,
sisSIS,
I think it adds up to a free house as she was paying $120pw in rent whihc was due to go up and now she’ll be paying $125pw in mortgage and expenses, therefore the cost is relativley the same but she’ll own it instead of it being dead money.
Regards
PK
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