Hey, I’m Property Jim, 25 and looking for my first home in Sydney/Parramatta. I only have $16000 ($10000 in a Term Deposit that expires in September) in the bank and am on a limited way of $35000. My net income is $150 a week after expenses. Looking to move out of home by 1 January 07, any ideas of how I could achieve this, please?
Thank you
Property JImSome basics…
Do a budget and analyse where all your money goes, so that you can maximise your savings before you move out of home.
A mortgage of $220,000 will cost you around $1500 a month, so start by saving this amount (less any rent or board you need to pay currently). (Or alternatively calculate how much your likely mortgage and resulting repayments may be and pay that to your savings account). That gets you into the “paying a mortgage” mentality.
Consider buying an investment property that is positive cashflow (if you can find one… or make one…) and just rent when you move out, as the cost of renting is roughly half of the cost of owning.
Invest in your education. Read books about mortgages, real estate, making your money work harder, different types of investing, etc, etc… This may expand your mind to see opportunities that you couldn’t see before.
Hope some of this is helpful for your situation…
Kelly
Originally posted by PropertyJim:am on a limited way of $35000. My net income is $150 a week after expenses.
No offence Jim, but if you only have $150pw after expenses, I strongly suggest you examine your expenses. Paying through the nose for an expensive mobile phone and broadband habit, have an enormous car loan, credit card debts or some other kind of wasteful addiction? If so, deal with that first.
$150pw will only get you about a $80,000 mortgage, and even then you’d need to come up with extra $$ for the rates, insurance, BC etc which would likely run into a couple of thousand per year…
Cheers, F.[cowboy2]
Thanks foundation and kelly. I have devised a better budget and have far greater disposal income then I previously thought. You guys rock!
Thank you
PropertyJimGood on you, Property Jim
Is there any particular reason you are looking at buying in Parramatta? More than likely the property will be negatively geared. You can look at some cashflow positive or neutral property in some strong regional town for lower investment.
Regards
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Sadly PropertyPower I need to move to somewhere I can get to my place of employment. And Parramatta is more affordable than somewhere like Epping.
Thank you
PropertyJim
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