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Be very careful with rent to buy. A lot of it is scams. I would go and see your bank take all your figures down and ask for their help. And don't over borrow. Borrow much less than what you can afford so you don't over stretch yourself
I'm the original poster... I don't necessarily want the short cut I just don't get how people manage. We don't have cable we only have my phone (i could cut back on data usage and save little there) no Internet we only have 1 car. We might get pizza once a month if groceries was cheaper than expected. Groceries are very basic already (might try aldis again). Hubby takes leftovers to work for lunch. We're looking for cheaper rent and I'm wondering if hubbys loan repayments could be lowered.... Going to write every cent we spend over the fortnight/month down and see what we can cut back on.
Look into some work from home options. Hubby could get a second job. Any extra you earn goes straight to savings. Cut back on what you can and save save save. It IS doable. You may just have to settle for less with your first home and work your way up. Maybe move into a cheaper rental for 12 months. Make sure you pay off the loan before anything else as it will be higher interest, then concentrate on saving. Might be an idea to do some study so that you are more employable when you can go back to work.
We were lucky enough to live in my MIL town house in QLD, while she was in NSW. We did not have to pay rent-only upkeep and rates/water etc of the house. So we were very lucky that hubby and I were able to start a family and live on a reduced wage, but still save monies to buy a house. We lived there for about 10 years. In that 10 years we took, 5 over seas trips, had a wedding, had 2 kids, bought 2 brand new cars and saved $75k for our deposit and $35k for some simple additions-a deck to the house we did buy. We now live in our own home, however we now have 3 kids and our main aim is to pay off the mortagage as fast as we can. We were putting away close to $700 per week while living in MIL house and we did use 10k of our deposit late last year to go on a dream holiday with our 2 kids-which is how we ended up with 3 kids-lol. But in the end $75k was a good deposit. We put away the same amount of money for the mortgage per week!! I know that with out my MIL generosity and allowance to live rent free in her home for 10 years, we would not have been able to afford the lifestyle and the house we have currently bought. In the end I guess my take home message is, if you can, live with your parents to save some money first and then with a good deposit, better houses/better suburbs will be more available to you. I was prepared to buy into a higher socio economic area, for the safety and better schools for my children.
Now after writing this posts, I am thinking of all the trolls that are just waiting to put me down for the amount of $$ I have written about and about the fact I am probably and upper class bitch, because I refuse to move to dodgy suburbs.....well let me say it before you get to it, water off a ducks back my friend. This is my story, I am grateful for my MIL help and I know not everyone can have it.....but as I said my message is-it might just mean you have to live with your parents first to save some money-that is all.
Rent to own? Buy with no deposit? Apply for down payment grants? Borrow against your retirement for down payment?
The other option is to downsize you current place, cut everything not a necessity, and work opposite shifts doing any job you can get. That's how we did it. 3 people living a studio apt. Me working nights, him days. Never going out skipping every birthday and holiday for us and skimping on what we did for our son. Never buying a meal out, brown bagging every lunch, making pur own coffee, no cable or web services, one cell phone for emergencies and oNE car to share... The hard way is obvious, I just assumed the asker wanted the short cut.
You still needed some money though (we had to try and convince a developer to sell us land on a $1000 deposit and you need to be able to pay the mortgage drawdown repayments and still pay your rent which is tight) but I would definitely do it again.
Our house is tiny but it's ours and I'm glad we did it.
There may still be some builders around that do it
It's not as good as saving a deposit but we're in the market now
I only made a phone call expecting to be turned down so might be worth making a phone call
Not sure how much this helps but just wanted to tell you our experience.