To rent or to buy??

[Sammy76]

I have to do a lot more serious research about this, but I am just thinking out loud.

I am not sure where to go with this...firstly, where could I go to speak to someone about my future when it comes to buying my first home, $ deposits, mortgage repayments etc and also about how is the best way to go about buying my home and selling, and how to make the most money??

I am a single Mum, living with family for a few years, saving I hope around $10,000-$20,000 as a deposit for a home.

Basically, all of my (married) friends have bought a home, and I feel really overwhelmed the thought of buying my own home as a single Mum, but SO desperately wanting to get ahead to secure a future for my son and I. I have no expertise in this field, so would love to speak to someone who knows how to go about things.

It feels like everyone one I know is buying, and I fear that if I don't, I will be never getting anywhere just by renting, and would love to hear the argument that maybe renting is better than buying for now.

Fact is, by the sounds of mortgage repayments, I really couldn't afford $400 per week!! Definitely around $250, but anymore than that, it's difficult!!

[andie_pandie]

Hi Sammy

Thanks for your post.

As far as finding out information about mortgages, lending, repayments, borrowing capacity I can help you with this information. You are welcome to PM me with the information that you require.

As far as making money out of property I am unable to assist here sorry. You are best talking to a financial planner as they look at options that best suit your needs for the future.

With renting vs buying there is no right or wrong. Everybodies situation is different, I know there is a lot of pressure to buy however sometimes people are not in a position to do that. I have had clients whom have owned homes for years and then sold and rented for a few more years as they found the pressure of a mortgage just too great. Then clients in the same situation as above desperately trying to get back into owning however the house prices have soared making it again impossible. The rental market in several areas around the country is also getting very high and out of reach which is also scary.

With regards to repayments on a mortgage, if you can cope with a loan around $250pw week then with the current interest rates this would mean a mortgage approx around $150000 which does not buy you too much particularly in Sydney. Having a good deposit will help increase that amount, ie: $10K means a purchase around $160K etc. If you are a First Home Buyer then you should be eligible for the Grant available.

I is great that you are looking out for the future of your son, very admirable.

Regards Andrea