Few Questions

[Good Win]

Hi all, I'm 18 and studying Podiatry at uniSA and am looking into getting into the property market and buying my first house (hopefully within the next year or two). I'm a total newbie to this caper so any help would be appreciated

I have some questions regarding home loans and deposits.

I don't have a 'real' job yet (I just work at a local newsagency and tutor for cash-in-hand as well as making money from the stockmarket) so how would this affect whether i get a home loan? What circumstances are required? eg. do i need to prove i have a steady income?

I have about 40k saved up and am making about 10k a year profit. I heard i need at least a 10% deposit to buy a house? So therefore i can look at houses up to 500k ish (with FHB grant)?

Given my tax-position, would it more beneficial to positive or negative gear? (I just learnt these words this week!..) Of course my tax position will change in about 3 years when i actually get a real job.

Cheers

 

[Lyyynnnchy]

Hi all, I'm 18 and studying Podiatry at uniSA and am looking into getting into the property market and buying my first house (hopefully within the next year or two). I'm a total newbie to this caper so any help would be appreciated

I have some questions regarding home loans and deposits.

I don't have a 'real' job yet (I just work at a local newsagency and tutor for cash-in-hand as well as making money from the stockmarket) so how would this affect whether i get a home loan? What circumstances are required? eg. do i need to prove i have a steady income?

I have about 40k saved up and am making about 10k a year profit. I heard i need at least a 10% deposit to buy a house? So therefore i can look at houses up to 500k ish (with FHB grant)?

Given my tax-position, would it more beneficial to positive or negative gear? (I just learnt these words this week!..) Of course my tax position will change in about 3 years when i actually get a real job.

Cheers

To borrow $450,000 @ an interest rate of 7% you will need to earn a minimum of $71,000pa as long as you have no credit cards. A credit card, even if you don't owe anything on it, will significantly reduce the amount you can borrow. Repayments will be a little bit over $3,000pm.

You will need a job history of min 6 months with most lenders requiring 12months +.

I suggest with what you are currently doing for work and uni you look towards the $200 - $250,000 market and then when you have had a full time job for 6 - 12 months you start looking at the higher bracket

 

[Frodo]

IMHO no chance at all

Put it into the stock market and buy a house when you've held down a job for a year.

And buy the cheapest house in the best area.

Don't forget that your own house will be a liability for most if not all of your life. It only becomes an asset if income producing.