Quote:
Originally Posted by Franco Cozzo
Looking at the cheap end of the market here, did the loan repayment calculator thing and on my wage even with the deposit, its not really enough to live solo and pay off the mortgage on a $400K property 120km out of Melbourne, unless I want to be eating vegemite on toast for breakfast lunch and tea 
The weekly repayments were going to be over 60% of my weekly wage - assuming interest rates didn't go up again and a 240km daily commute to work and back.
Realistically I don't think I could live that far out because I'd be spending 2 hours+ commuting to work assuming it was smooth on the freeway out of Melbourne, and how much fuel would cost me, that same coin buys a 1 bedroom apartment in some of the inner Melbourne suburbs.
Its one of those things where I need to jump $20K+ in wages so change industries or partner up for it to be realistic.
The deposit isn't a big deal, its just not really viable for the repayment side of things. |
So granted things were a lot cheaper in 2012, but i pay a 460k mortgage in sydney, 25km from the cbd as the crow flys, 36km by car. Granted, when i got the loan i was on only $25 an hour but had a wife to feed me. The whole time i have paid the mortgage. So i offed the wife a few years back, kept the house and yes my rate has gone up, i manage to pay the house and associated costs, and live a life perfectly fine on my income alone. Well, i cant afford a drug addiction or anything like that, but i do ok on a pretty average income. I have a nice boat and crap, but in my favour, whilst i own a car, i drive a work car with a fuel card and work pay for a few other things for my private use. So, thats in the realm of a few grand of my income saved per year. The first few years of a mortgage are crushing, but after that, wages go up, however the price you paid for a place does not change. So it does get easier in time. And when you buy a house to live in, its to live in, not an investment, so current values mean nothing. If it tanks who cares, the market always picks up in time and well, you need somewhere to live.