Should I buy a house without a partner?
I had the money last year and job salary 2 years ago
Through procrastination and fear of job security, I didn't do it.
I missed out a few houses I sorta liked.
I also got the pre-approval so easily meaning my fears (Given by my Parents and older brother and friends) were unfounded
Obviously I saved more money since then but I also payed rent.
Thank you for advice,
Only problem is the income from the house likely won't cover the cost of capital + expenses.
and i introduce negative gearing to you
There's always cocaine and hookers.
There's always cocaine headphones. Makes for a neat wedding present.
Just make sure that you can comfortably afford the repayments. Also make sure that if you were unemployed for 3-6 months that you would be able to afford the repayments.
I calculated for one year of unemployment for repayments and then I am broke (Numbers may vary due to interest rates),
Also my parents can easily bail me out but I don't want them to
Perfect, at least you have that fallback option.
I purchased an apartment in the inner west of Melbourne last year. Whilst it wont go up in price as much as a house its what I could comfortably afford. In addition to this its very easy to maintain and I don't have much to worry about. I do only intend to live in it for a year (for now) as my partner will buy an apartment in Melbourne this year so that we both make the most of the first home owners benefits.
The earlier you commit the better. I seriously wouldn't worry about it given that you have your parents to fall back on. I don't mean to sound like "YE RAIL THEM WHILE YOU CAN" but its a really handy thing to have. I too asked my parents if they would assist if things went pear shaped, fortunately I haven't had less than $10k in the bank since buying the property.
Also take into consideration that you only have to move into it within 12 months of settlement in order to obtain the benefits of FHOG. My place was rented out for the first 7 months after settlement before I moved in.
Maybe just wait until July 1 so that you don't have to pay any stamp duty..
". My place was rented out for the first 7 months after settlement before I moved in."
You're well aware of main residence tax exemptions right?
In my particular instance the property was already leased out under a contract.. And I was coincidentally spending half of that time out of the country anyway. In addition to this I do intend on renting it out again in the near future so it doesn't really help me.
Hopefully you are right. Main residence can count by living in it 6 months and 1 day from purchase, after that you can rent it out for the next 6 years and it will still count.
I'm sure, if you have received the first homeowners grant, your girlfriend actually becomes ineligible. She will have to disclose you've received it or she could face paying it back. That would be no fun.
How? We have nothing that ties us together in any way.. Maybe if we had a joint bank account or were on the same bills then sure but I can't really see how it would be an issue.
One thing to consider, if you are single now, eligible for FHOG. Best to get that FHOG if you find a house that you like and are comfortable to buy.
Down the road, if you have a partner, both of you are only eligible for 1 FHOG. Or worse, if your partner already claimed his/her (I'm open minded) FHOG, you won't be able to claim it.
That's one the problems I am considering as I am single now,
But my worry is that a future partner maybe unhappy that purchased a house already they didn't like.
Also my budget is only half a million in Melbourne which some people may consider cheap home
Well, in my book, having a property under your name prior to relationship is a plus. Not sure what's the general concensus is.
I bought a house years ago. My new wife hates it. But we are able to use it as leverage to buy a house for both of us. You can't really go won't imo
Assume interest rates will go up 5% at some stage and then ask yourself if you could afford to make the repayments in that situation. Simple.
90% of mortgage holders will be sleeping on street, if that happens. Highly unlikely, IMHO. Allow for 2-3% at the most.
timestamp
Also, when a poll on ozbargain tells you 23 to 1 to make the largest financial decision of your life you know it's pretty close to the top
Short bunds, long fed funds is an okay trade and has a positive carry of around 1.2% at the moment. It's also more liquid, has lower transaction costs and no one on ozbargain is talking about it.
I bought a fidget spinner the other day, Now im broke
That is also why I am so trepidatious about spending almost all my money,
No more fidget spinners for me for at least a decade.
While if I don't buy a house, I could afford a million fidget spinners
The fidget spinners will be worth more than 1 million bitcoin in under a year
Imagine what you could do with a million fidget spinners..
In same position, 27, on $130k a year, saving $6,500 a month (and dumping it straight into Rams as soon as it arrives) after moving back in with my parents and debating whether to borrow the minimum conservatively (maybe $370k) for as a decent one bedroom apartment that I expect no return on, or move out at the end of the year, rent at a reasonable rate, continue to save (a little less) and be patient. Once you start planning, everything feels like it's a rush. I'm getting tunnel vision around this topic.
RAMS?
The Rams Saver account.
130 a year and you'd only loan 370? I can get than on less than half you wage and still get by.
How are you considering only borrowing 370k..on the wage you have at your age, I'm surprised you don't already own a home or two. on a side note what industry pays a 27 y.o 130k?
I was living in SF for two years working where it was impossible to save. I'm work in tech as a designer, we are looked after pretty well on the salary front.
I'm looking at $370-$390k as I don't want to be able to manage repayments 100% and still enjoy life.
If you're a male. It's a bad idea.
You are only.putttinf yourself at a disadvantage
Trust me
OP…I sense your question is less around should I buy without a partner but more around should I buy now. Unfortunately no one knows what the market is going to do, go up another 20% or tank.
There is nothing wrong with renting, as long as you invest your savings wisely.
As for the partner bit, it has little bearing unless you want to combine buying power for something better. You could buy one now and it would be solely yours but if you enter into a relationship, they could take half.
don't buy it with a partner. just buy under your name, if you don't leave in it rent it and negative lag and claim back in tax
Why won't you buy it on your own? If you don't have a partner and need a roof over your head and are ready to buy…
You could buy one and rent it out, have someone else pay it off. Then in twenty odd years if you need a house you will have one.