So basically my renting situation is about to change, which was a very good deal during my university studies and starting my 1st job. I'll outline my current one and then look at a possible case, if I go to buy a house.
Few other things to consider, I have a HECS loan (from uni study) around $30k which will start to be paid off automatically next July. Which I think will be about 3% of my total income.
Edit: Forgot to mention, I have no other debts currently.
If I were to buy a house, my calculations don't include the possibility of renting out a room to cover a bit of the costs. Also any First Home Buyers grants that I might be eligible for aren't included either.
I think I would need basically all new (or secondhand) furniture and electronics. Dryer/Washer, Fridge, Bed.... etc. Some of this I could get for quite cheap, however it still adds to the initial cost.
Income (Monthly) ~ $3200 after Tax
Current Savings: Just over 20k
Expenses of current renting situation (Monthly):
Rent - 280
Electricity - 200
Mobile - 50
Internet - 70
Fuel - 240 (varies a bit)
Lunch - 120
Groceries - 200
Total Expenses ~ $1160
Left over (Profit) ~ $2040
Expenses if I got a loan (Monthly):
Loan - 700
Electricity - 200
Mobile - 50
Internet - 70
Water - 100
Fuel - 240 (varies a bit)
Lunch - 120
Groceries - 200
Total Expenses ~ $1680
Left over (Profit) ~ $1520
The loan that I have chosen here will give me roughly $350k to buy a house with, with repayments of ~ $1300 a month for 32 years. This is my worst case scenario in terms of how much I get a loan for.
Properties around my area go for anything in the range from $200k-400k for a decent house. The current buyer atmosphere is pretty good too, so might be able to negotiate prices down a bit.
So my question, does this seem like a good idea, to be buying this early? Anyone else been in a similar situation, did you have to really increase how much you watched your money?
Any other advice that might help me, relating to buying a first house?
Submitted September 05, 2017 at 09:57AM by throwawayfinance07 http://ift.tt/2vI22xE
