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advice needed for a single mother

Discussion in 'General Investing Discussion' started by beautifulsoul, 16th Mar, 2010.

  1. beautifulsoul

    beautifulsoul New Member

    Joined:
    16th Mar, 2010
    Posts:
    2
    Location:
    Melbourne, VIC
    Hi, all. I'm new here. I am a single mother at my 30s. After years's working and saving, I have 40k in my bank account and have a job with annual salary 40k. Currently I am renting with my daughter (monthly rental: $1000) and considering to buy a property either for living in or investment.

    My affordability is not that high. I might only afford properties 200k-250k. Now I'm thinking to invest a property in Geelong (I'm in Melbourne now). Is it worth the money?

    Thank you sincerely.

    N
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Are there properties in the area you currently live which you could afford to buy?

    I think owning your own home (and striving to pay it off) is a good first step - gives you some security and an asset which will continue to provide you tax-free capital gains into the future. Nice way to build up a nest-egg.

    You don't want to over-stretch your finances, and there are additional expenses you will incur by owning a home that you do need to take into consideration ... but I think it is well worth exploring.
     
  3. beautifulsoul

    beautifulsoul New Member

    Joined:
    16th Mar, 2010
    Posts:
    2
    Location:
    Melbourne, VIC
    Hi, Sim. Thank you very much for your advice and suggestion.

    Units in my area are quite expensive now (300K+).
     
  4. KimandGlen

    KimandGlen New Member

    Joined:
    25th Mar, 2010
    Posts:
    4
    Location:
    Perth WA
    Hi Beautifulsoul,

    Good luck with everything. First thing you may need to do is to find out your borrowing power. Once you know that, you can do the sums to find out what is better, either to purchase a PPOR or IP.

    Basically, if you purchase a IP, you would have to be more financial than the $1000 a month of rent you pay now. Not an easy task when you consider depreciation, CGT and a lot else.

    Good luck