Hi 82VHSLE, I know how you feel. I am a 30 year old bloke with 1 kid and another one on the way. I am renting a tiny house for $375 a week (going up to $400+ new renewal).
I think Ormeau is too far out of the city (if you are a city worker). Houses are cheap out there for a reason - it is in the sticks. There is a lot of land out there, so you will probably get very little price growth for a very long time. It may even turn into a bogan slum like parts of Springfield.
I am spending $475k on my first place, and for that I can get within 8kms of the city with 4 bedrooms and a media room. Yes the place is older, but it is quite nice. It is less than 40 minutes (door to door) to get to my CBD workplace.
My deposit is a little lower than I would like ($30k), but I am keeping $30k in an offset account to cover the unexpected. I also have no debt at all and the repayments are less than a 3rd of my after tax income.
I would not even consider getting my in-laws to go guarantor unless it was for an astoundingly good deal with good prospects to increase equity (which you will not get at Ormeau).
If I was you, I would wait a bit longer and pay down all debt - then save enough of a deposit to not need the inlaws help.
With the global economy being what it is, I would not be surprised if prices continue to drop and more forced sales appear. Can you sign a 6 month lease to give yourself more time to get into a better buying position?
