I earning $70000/ Annual. My partner is staying home to look after my baby daughter.
I am living in innerwest area Sydney. Surround here all the 2brm apartment is around 400k+ , the weekly repayment will be $700+ if I borrow 320k for 30 yrs.
How can I afford $700 per week for a 2 Brm apartment if only I am working?
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You can get up to 85% LVR without LMI with a few non bank lenders.
This will reduce your deposit required by some $20,000
This saving of $20k upfront will cover your 6.5% I/O on the first years repayments....give or take a couple of k.
That would provide you with a secuirty buffer, so long as you keep making the repayments, sit the 20k you didnt put in, into a high bearing term despoit or the like, to futher reduce your repayments or recoup some repayments made (about 2k savings per year)...
Go I/O for first 5 years at 6.5% variable is 22k on 85%/340k
On your 70k income, you would recieve about about 50k net or 961 week net less 460 = $500 week to live on.
Less takeaway, buy a unit near transport saving on travel costs and $500 week net should keep you well and truly off the poverty line.
Your rent would have to be close to $400 week I would think (innerwest Sydney)
So for $60 week you can move to ownership status....or keep renting.
In 5 years time when the I/O repayments turn to P and I, hopfeully Mum is back working to cover the increase in repayments, and by then some equity has been built in the property.
