I understand that the property market is terrible, but you need a house one way or another. And sooner than later because property won't magically fall with the enormous amount of immigration and already-low supply of housing which has been decimated even further. It will keep going up. Each 10% rise in a 900k property will mean you need to save $90,000 more from your wage (which likely requires $135k of pre-tax earnings, and which will likely mean 3-4 years of saving as the property growth outpaces your savings rate).
Retiring without a house is a recipe for working until you no longer physically can and then becoming destitute. The age pension for people without a home is nowhere near enough to help pay for rent.
At 37, this should be your highest priority.
If you have not owned a home before and have been making voluntary contributions for years, you may have up to 42.5k (plus deemed earnings) that you can access from your super for your first home (see "FHSS').
You will likely need to live further out of the city, but that is far better than what I mentioned in my second paragraph.
Start with three things:
* A budget so you know where every dollar is going, and start aggressively cutting to save as quickly as possible for a home deposit
* Speak to a mortgage broker about how much you can borrow, and add this (and all home ownership costs) into a spreadsheet so you can see the cost of everything (it is a very high amount, but you need to know this in advance).
* After the second step, look for homes that are within your budget. Luckily, your partner is working, even for a modest salary. Otherwise, that would lower your borrowing power to a level that you may not be able to buy anything.
The housing situation is terrible. But ignoring it is going to mean so much more suffering.
It's also a possibility to consider moving or buying a retirement home elsewhere. But you absolutely need a home by retirement that is mostly or entirely paid off.
Retiring without a house is a recipe for working until you no longer physically can and then becoming destitute. The age pension for people without a home is nowhere near enough to help pay for rent.
At 37, this should be your highest priority.
If you have not owned a home before and have been making voluntary contributions for years, you may have up to 42.5k (plus deemed earnings) that you can access from your super for your first home (see "FHSS').
You will likely need to live further out of the city, but that is far better than what I mentioned in my second paragraph.
Start with three things:
* A budget so you know where every dollar is going, and start aggressively cutting to save as quickly as possible for a home deposit
* Speak to a mortgage broker about how much you can borrow, and add this (and all home ownership costs) into a spreadsheet so you can see the cost of everything (it is a very high amount, but you need to know this in advance).
* After the second step, look for homes that are within your budget. Luckily, your partner is working, even for a modest salary. Otherwise, that would lower your borrowing power to a level that you may not be able to buy anything.
The housing situation is terrible. But ignoring it is going to mean so much more suffering.
It's also a possibility to consider moving or buying a retirement home elsewhere. But you absolutely need a home by retirement that is mostly or entirely paid off.
Statistics: Posted by andrew99999 — Mon Apr 22, 2024 2:54 am — Replies 1 — Views 308