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Is it worth it?

May 30th, 2021 at 04:49 am

Anyone who lives on a fixed income knows how frustrating it is and can be...I haven't been able to work in 8 years and I hate it...hubby is retired and had a stroke and 17 tias and just finshed cancer treatment a couple months ago and I have spent thousands on specialists which haven't really done much I am getting better but not a lot...we are wanting to buy a home...which is so hard here with all the fees you have to pay up front...and our oldest daughter also has a chronic illness and will live with us for the rest of our lives...which is fine for all of us..she will be having a child next year (getting pregnant this year) and yes she will be doing it on her own (her choice)...she has her own income and helps pay bills etc....it seems like everytime we get a bit ahead something else always comes up...my issue is...with me and my daughter not being able to work (right now hopefully in the future) and with my hubbys age it will be hard to buy a house in the long run (I'm hoping in 17 months) or we just won't be able to due to lending guidelines and they have become stricter since the pandemic and people struggled....sorry I'm just rambling probably but I will show you some figures and see what your thoughts are

home loan will be around $500,000 (aust $ and no that isn't a great big house either)

so for a low deposit (3%) you need $15,000 deposit

on top of that you need to pay $29,526 in fees 

so that equals $44,526 deposit to begin with....

That is where the hard part is saving $15000 isn't to bad its the fees that are hard to save but you have to pay up front....so do we just keep renting and just hope we can save and buy or just rent for the rest of our lives...although we hate that idea...

Also looking into how to make extra money from home but not that much opportunity here in aust that I can see

5 Responses to “Is it worth it?”

  1. lots of Ideas Says:
    1622393232

    I don’t know how old everyone involved is, but if your husband is retired, I am going to assume you and he are over 50.

    I also don’t know what kinds of financial assistance Australia provides to parents of young children.

    It seems like three of you are dependent on your husband’s pension for income, and your daughter is planning to incur expenses to have a child she/you will have to support.

    For you to save $40,000 in two years, you need to save $20,000 per year, $1750 per month. When you subtract all of your expenses from your monthly take home amount, do you have $1750 to save and not touch no matter what happens? If the answer is no, how much can you reliably save? Divide that into $40,000 and that is the number of months until you can buy a house - and the amount will keep rising so add a month a year for every year over two.

    In the meantime, does your husband’s pension continue if he should pass away? If you also die, can your daughter support herself and a child? Would a house be a burden to her and you would be better off to save money to buy her an annuity?

    This is a math exercise, not an emotional decision.

  2. ceejay74 Says:
    1622400184

    lots of Ideas, it sounds like the daughter does have her own income. But I agree it's best to run all sorts of scenarios before deciding.

  3. LuckyRobin Says:
    1622404926

    I'd also take into account that owning a home means you are responsible for things you are not when renting, like painting or roofing it and maintaining a yard. Things like replacing a broken water heater or the plumbing being fixed will fall on you. As you get older or more disabled upkeep will become harder and harder. You might not be able to keep up with it and will have the expense of hiring people. At the same time, with a rental you are at the whims of the property owner and you had a cruddy experience with the last one.

  4. Carol Says:
    1622416047

    Does Australia have condominiums? It might be a compromise between a single family home and a rental.

  5. mumof2 Says:
    1622431103

    Yes my hubby and I are over 50, he has SS and a pension, I am also on DSP so have some income...my daughter also has her own income and pays her own bills etc and yes in aust she will get some money for the child...we can save the money...in 18 months, we are pretty frugal...and what we will do is we will pay the morg and our daughter will put money away for rates and yearly things that need doing...we will also have an acct that we will save for things that may go wrong

    Carol, we like to grow our own food so no a condo won't work and I don't want someone on the other side of my wall...and they are just as expensive or more because they are new

    Its just the money up front that worries me getting it in time....will keep looking at each option...we want to buy so we don't have to move all the time...we will continue to look and search out all options before we decide...we do have time on our side (for now)

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