Giving up buying a house
Answered 6 months ago
Ok so I don't want to get into our circumstances other than we don't have a large income & we have sacrificed & saved but after seeing a mortgage broker I've lost all hope. So now what? Trying to figure out a financial plan for our future now. Rent & invest all extra money in the stock market & hope for the best? Can anyone offer any suggestions?
Have an answer?
My bet is in a few months the RBA will raise interest rates (which they will do when they see the unemployment rate staying low because the economy isnt as weak as the media makes out). Once that happens, all the people that have borrowed up to the hilt will come under pressure and there will be more defaults, plus people wont have the ability to service massive loans so they wont be prepared to spend as much - so the pressure will come off house prices and I bet they come down a bit.
We are in a similar position - we have a 3rd kid and have massively outgrown our very small house. We wanted to buy a bigger one but are priced out. We are trying to make do - converted the garage into a 2nd living area for example - and are saving hard while we wait for a price correction.
And you don’t have to buy a house if you don’t want to.
Have you heard of rentvesting? The idea is, if you can’t afford to buy near where you work, buy somewhere cheaper and rent it out, like somewhere more regional, and try to rent it out. Not without risks of course, but if all else fails at least you have a house somewhere?
They may require some TLC, but if you're not afraid of DIY they could come up really nice.
Personally, I love the idea of that. My husband knows that if I ever win $50k+ on lotto, I'm retraining as an accountant, and uprooting our lives to move rural again.
It's worth considering.
As for the stock market, hold off a little there. You need to wait for the share price to dip low enough to buy in. And be prepared to think of the money as "lost". As in, you should aim to hold on to your shares for as long as possible, and reap the dividends. It's much less volatile than day trading, but you can have a fairly stable return over time. It also helps if something you invested in suddenly skyrockets in price. Who knows, maybe a $1000 investment, could lead to a $1m offer to buy you out.
Crypto currency is risky, IMO. It started up out of nowhere, and given the projected recession and market collapse, it's not a very stable investment. Plus, notice how everyone seems to be getting into it - that means its devaluing. Which means, it'll be harder to sell for a profit.
But, these are just my opinions, and I'm not a financial advisor, nor a stockbroker. I'm just a housewife, really. Take what I say, at your own risk.
Ps i don't think you give yourself enough credit you're not just a housewife, you sound like a pretty cluey lady, i'm sure you're rocking this life 💟
Talk to a different broker & ask the question of what you need to do to buy a house in the future.
Otherwise talk to a financial advisor about investing that money. They'll do a profile based on your lifestyle, investment amount & goals (early retirement, etc.) and recommend different options & explain them to you. It'll cost but do you want to risk your savings on uneducated advice?
I say this as my DP is in the industry. Almost half his clients are people who jumped in without understanding the risks what they were doing, proper tax structure, got into trouble & come to him looking for help.
Iv made about 40k off 1500
Friends of mine have made 230k off about 45k
My hubby has made like 4K off about 500 I think? Not sure about him I know he was pushed he didn’t dump his super in it
Op what I’d suggest is dipping your toes in.
Start with 500.
Anything your willing to take a chance on and lose.
Or not. It was just a suggestion to add money onto where your at.
I for one never invested in shares because I couldn’t get my head around it, and crypto was much easier to get and actually fairly sinple.
Good luck op.
Don’t take a random stranger on the nets opinion sure, but might be worth looking into it yourself x