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Here is the thing. I live in land down under called Australia and property prices here are 12 to 15 times your average wages before tax. I am 32 and still renting and no hope in hell I can save 20% deposit to get loan even if I live off noodles for few years ( or may be I can if I only live off noodles ). There are many reasons for property prices so high here but I am just questioning what it takes to buy a first home ?
How long did it takes you to buy your first home ?
Thank you for your responses.
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I was 30 and a big chunk of the down payment was the only stock option grant that ever paid off for me. It turned into a money pit with neighbors from hell. I sold it at 36 and swore I'd never buy a home again.
37 years old in Columbus Ohio. My advice to you is wait until you get married, if you are not, because I learned the hard way, women HAVE to pick the house. I had a woman for 6 years and bought her a house and we broke up because she didn't like it; so now I am stuck with it.
Housing is fairly cheap in the mid-west U.S., but I'd almost prefer to live in an apartment. I am stuck with neighbors who throw trash in my yard and cutting the grass and other upkeep. I will admit that I put 20% down and have very low payments that let me buy a 9 month old car 1 year ago with cash and I'm currently on holiday in Thailand, living the life!
Good heavens, man. That is a fact that we, as men, have to learn very early in life. YOUR WIFE HAS TO MAKE ALL THE DECISIONS THAT AFFECT YOU BOTH, otherwise your marriage won't last long. I've been married for 53 years now and I haven't made an important decision in all that time. My wife even chooses what clothes I wear when we go out. It saves such a lot of arguments that way.
I bought my first home when I was 25. Actually, I bought 2 flats and converted the building back into the original house over the course of approx 7 years before moving in! The property was owned by a mother and daughter. The daughter (in her 60s) owned the upper 2 floored flat, and the mother(80s) owned the ground floor flat. They had reached a point they were downsizing and put both on the market together.
I was obviously fortunate enough to be in the heart of the Oil industry, so benefited from company share schemes etc. I dumped a load of them over the course of a few years to generate a deposit which was 26% of the purchase price of the properties, which meant that I also triggered a < 80% LTV band lower mortgage rate.
I was also in no rush to move (was staying at parents and was offshore half the year), so after seeing the property and then noticing it wasn't selling because of the renovation work required, I made an offer 5% below market value and gave them 5 days to accept or I walked away. They accepted.
I was also sensible in the fact I didn't cripple myself with an excessive mortgage, I only took 63% of what the bank offered me, and elected to fund the renovation progressively using maturing share schemes, and knowing that I could always go back to the bank for more mortgage if things became desperate.
This meant that now, I could if I wanted, pay off my mortgage tomorrow, but because I am using an offset account, I am effectively interest free on the mortgage and can use my capital for other investments as I see fit. As the mortgage rates fell over time, I also did not lower my monthly payments, this means that now for every 3 months mortgage payments, I actually pay for 4. so the capital repayment falls quicker. In all I am currently forecasting to pay my mortgage off about 7 years early and saved about 12to15K in interest payments. And with the housing prices increase, it is now about 3.5 to 4x the original value.
So, all I would say, is put a little aside each month (no matter how small) to get that deposit up, and then overpay or offset whenever possible.