The First Home Buyer Has Left The Building...Here's Why!

The First Home Buyer Has Left The Building...Here's Why!: April 07, 2014

Usually have a good feel about what’s going on in our economy, guided by media, conversations and personal experience. But there is nothing more sobering than to have some brutal statistics land in your email box confirming what you instinctively knew all along. The cost of living is crushing the ambitions of a whole generation of homebuyer. The following is a report released by ING Direct. It is little wonder that people have modified their expectations and beaten a hasty retreat to the rental market. Read these stats then read the solution that seems to escape so many…Home Addressed has declared it many a time and continues to advocated the most obvious way into the housing market…CO-BUYING!

Borrowers who are struggling to save a deposit are probably spending half their income on rent, utilities and groceries, according to new research.
A study by ING DIRECT found that Australians on average spend 20.5 per cent of their salaries on rent and mortgage, 15.5 per cent on utilities and 12.1 per cent on groceries.
Australians also save just 6.2 per cent of their salary, with 18 per cent of households spending more than they earn.
Western Australians were found to pay more than any others on mortgage and rent payments, spending an average of $1,249 per month.
South Australians came in last by spending $787 per month on mortgages and rent, while also having the nation’s highest saving rate at $416.
The report also found that Australians devote the second biggest chunk of their salary to household bills, spending an average of $633 per month.
New South Wales tops the list at $682 per month, while Victoria comes last at $585 per month.
WA residents buy the most groceries at $562 per month, while Queenslanders buy the least at $509 per month.
The average Australian also devotes $428 per month to credit card repayments, or 9.9 per cent of their salary.
The rest of their salaries goes to transport at 6.9 per cent, holidays at 5.8 per cent, entertainment at 4.3 per cent, health at 4.2 per cent and clothing at 3.2 per cent.

These statistics would take on an entirely different complexion if they went down the road of home co-ownership. For instance, the poor West Australians would be paying $625 on their mortgage if they were sharing. Imagine being able to put away the other $625 that would have otherwise gone on rent. Come on! It’s a no brainer isn’t it?
Method for Success:
• Buy with someone,
• Take out a contract that will give you even greater peace of mind,
• Bide your time, two years as a minimum and
• See how much can be saved,
• See how much can be gained through capital growth,
• Then sell.

Voila, you end up with a great deposit and able to manage your own solo mortgage comfortably. And this my friends is how the smart people get ahead…
Who will you choose to be, the naysayer, the procrastinator, the what if person, or the person who is decisive in thought and action and gets ahead?

Register at homeaddressed.com and find out how you can by your first house with half a mortgage. It's a free webinar that will education and enlighten you. Then register at the Home Addressed site and find yourself a co-buying partner or investor. It just makes sense.