Young singles in Australia have never found it harder to buy into property and whilst it’s a common goal, it should be well considered as any purchase at current prices will require significant cashflow and for a single earner – this equals risk.
For this young male, he has the ability to save $25k in the next 2 years and with the support of the FHOG, could afford a $300k property and enjoy stamp duty concessions. He will save $15kpa in rent and pay a minimum of $17.5k in interest only mortgage repayments. In paying interest only and parking additional savings in offset against the debt, it allows you to convert the property to a rental in future and maximise the tax deductible debt, using the cash in offset as a deposit for the next primary residence. Download to read more…
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