I was working while doing both part time, and worked between the two too, so they got somewhat paid down as I was doing them. The second was a commonwealth supported place, so it was a lot cheaper.
So my debt is 40k, but the cost was obviously more than that. Worth it for me, as both resulted in pay rises that more than covered the cost in a couple of years.
It's probably for board & bills not rent. It's pretty easy to save 50k in a year if you have a pretty minimal fixed cost that covers everything, never do anything and only leave the house to work.
There's worse places to be mate. Don't pay off your HECS debt, honestly at the point it's at you'll likely have it forever. Mine is 1/3rd less than yours and I'm on a bit over 100kpa and have accepted that it'll be there forever.
When you apply for a loan they don't calculate the amount of your HECS debt, just if you have a HECS debt. 20k effects your loan the same as 200k.
Have have looked at any borrowing capacity calculators? On 75k the max you'll be able to loan is around 400k, you'll likely be lower be lower because you're self employed. Keep in mind that's the absolute max as well, with zero room for interest rate rises or emergencies. I got a place for 350k at the start of the year and some months I still struggle. After fixed costs + utilities I'm left with about $1k before I've driven anywhere or bought any food.
Before you think about buying a place tho, you're in a pretty good position to do a bit of travelling if you've thought about doing that? If you google 'Overland Tours Asia' you'll find a bunch of companies that run group tours that are super fun, like [these](https://madventure.co.uk/new-asia-journeys/). I was super super shy at uni, but worked two jobs and had a bit saved up when I graduated so went on an overland tour in Africa, never having left the country before. Since the itinerary was organised and the group was the same it suited me really well, as I didn't have to stress about organising everything and had time to get to know everyone slowly.
I too am a fan of David Attenborough, so going to on Safari all through Africa was absolutely amazing - Again if you google 'Overland Tours Africa' you'll find a ton of companies that run trips there.
There isn't an hope in hell you get anything close to 700k loan from that low income. Even if you have 200k in savings, you simply don't earn enough to even pay the weekly repayments.
Though no idea how you are saving 50k a year, after bill/expenses etc. While also earning 50-75k. Something doesn't add up there.
My guess is that they spent ages mucking around at uni, likely doing a non Commonwealth support place masters, in an area which doesn't make them employable in that discipline
Hardly surprising. Many Australians leaving university now have much higher levels of debt than did graduates 10 or 20 years ago (let alone those who graduated back in the early 1990s when HECS began). In 2005-06, they had an average debt of $12,557. From then till June 2023 inflation increased 57%, which would mean that had the average size of debt increased in line with inflation held by people in their 20s should be $19,546 – instead average debt has risen by 145% and is $30,763. As always, nothing is being done about it, and students continue to take on large American-sized debts and the country just acts like all of this is normal. Fortunately I have my own (mortgaged) home and business so don't have to worry, but it's bleak out there for many others.
I think it's safe to assume it's CSP, given no prior study was mentioned so it's probably undergrad, and the poster is probably CSP eligible. An expensive Arts major and minor could definitely push that to $90k.
Degrees currently cost up to $16K per year. eg Arts/Law is five years and $80K.
Medicine, dentistry and veterinary science degrees used to cost around $200K They were deemed 'essential' a few years ago and fees were slashed to $12k/year.
I graduated as a conservation biologist in 2013, got a consulting job in 2018 and into mining in 2022... Once I got into the industry I accelerated very quickly as the experience outside is still experience. Im 31 now. Dont give up trying to break into a role, move laterally if you need to nut perserverance will get you there.
Because companies only want experienced people. There's a glut of people with 1 - 2 years experience, then a lull of people with 3 - 9 years experience (cause people burn out or quit), and then niche market for people 10+ years who can be more selective about what jobs they take.
Also, nicer jobs seem to be given to people with the luxury of nepotism :(
I’d drop that he had a masters and just get his foot in the door. We are still interviewing for graduates and you can climb quickly if your heads screwed on.
You can literally apply to the gov talent pool as a graduate candidate
https://www.psc.nsw.gov.au/workforce-management/recruitment/nsw-public-service-talent-pools
Go get a cushy job
Sole trader Gardner.... do you 'earn' $75k or have a taxable income of $75k
$50-75k is a massive variance, maybe work out how much you earn as a first step....
I think for what you want to achieve you are short of income for servicing with HECS in place and short of deposit and the extra servicing required to borrow more if you pay off your HECS.... speak to a broker and get a gauge on what's realistic for you before you start making big plans
Wait until she gets a massive tax reassessment on her principal place of residence now she’s been using it as an income source to receive rent from her son and has to pay capital gains tax on the appreciation since the 1980’s… Bankruptcy in your senior years
Hello. Most of these aren’t answering the the root of your question which is:
“What are my barriers to buying a house given my financial situation?
And does my HECS debt present issues?”
So. The barriers that exist to you is your relatively low AND variable income. A bank will lend to you much more readily if you earnt a wage. Your income through your own business needs to be rock solid for it to get the same weighting in the banks eyes as someone in say a 60k wage from working admin FT.
So! If you want to buy a 700k house- I would first say, buy a 500k house. Leverage the govt schemes to get past stamp duty and having a high deposit. You can. With no stamp duty you realistically just need 6-7% of a homes value in cash and you can straight up buy that bish.
If you earnt 75k rock solid money (wage) you would probably be able to borrow like 300k? (Confirm via mortgage calcs- they are everywhere). So if you want a more expensive house, you either need a massive deposit- or grow your income. Massive deposit takes ages to grow on small salary- so earning more money just solves both of those problems.
IMO if you want a 500k house as a solo person, you need to be earning at minimum 6figures.
Ok- onto your next question.
A hecs debt only affects you by lowering your income. You have mandatory minimum payments to make as income grows. Bank views your loan power as “total after tax income - regular expenses (of which hecs payments are)” if you had 3k hecs or 1 million hecs, the bank views it as if you will have hecs forever. My bank encouraged me to polish my hecs off (was 5k left) to increase my loan power by like 50k.
I hope that helps.
PS it is possible to get a loan as a business owner- you just need great documentation of earnings for a few years (3+ I would say)
The bad: sounds like you screwed up on your education preferences. Just because everyone can go, doesn't mean they should. You are focused on property rather than trying to understand more about yourself.
The good: I can tell you that 30 is very much the equivalent of an 18 year old here in Australia. You aren't behind and you also have 60K net to your name. Keep exploring options as if you are fresh out of school. I have 35 year olds on my team who are pretty much like fresh grads. Only thing is they can't be bothered working at all. You are doing better already by just thinking you want to change something up in life.
You can either get into a DINK set up OR take some of that money and try and get some life experiences under your belt. I would consider you very green based on where you are in life and how old you are. In Australia, you are doing ok, so don't panic. Most people at your age are similar.
40 years old here, It's something that you realise when you are near 40 that your 30 year old self was really just a baby, at least that is the consensus me and my friends have come to, sorry that doesn't really explain it but I don't know what else to say.
Thanks 🙏, this hit home. I will use that money to gain more life experiences, I have never been abroad before. Recently I made new friends who are going to take me to Bangkok , I hopefully will improve my outlook then!
Awesome. It is important to meet others from different backgrounds and cultures. I do not want to sound like a snob here, but you should try and meet educated people. They can teach you a lot of things to improve yourself, live better lives and manage the many obstacles life will throw at you. You may also learn you aren't suited to the narrowly defined path and ask for complete compliance here in Australia, so getting out and meeting people is important for you to reflect and learn.
Always remind yourseld that you are doing ok and as I said, I have entitled 35+ people on my team that still live at home and they lack motivation to do anything. You are much better and have some fight in you.
Have you seen how much a broker can loan you if you have a 140k debt?
It will definitely work against you also, they typically loan less to single people vs a couple as your more of a risk defaulting. As a sole trader how long have you been running your business because that will take effect of your loan application too.
I don’t think I was even asked how big my hecs debt is when I applied for a home loan, just if I had one. On $50k the hecs debt will mean almost nothing since it will barely effect his income. His biggest problem will be his earnings and that he is self employed.
how the F did we end up in a society where we went from paying $200 a year for uni (1980s) to having 20 year olds $140,000 dollars in debt?!
Dear OP. You can def change your life but I hope that you can make use of your degree perhaps by moving somewhere that has more of an environment near it ..
People here lampoon the OP, but the truth is many young people get easily sucked into the marketing/hype/pseudo-promises that universities sell on their masters programs.
There's some value to them, but not this way and not to all - we forget they're also income generating revenue streams. They also still create real debts (whatever people might say about HECs being 'good' debts).
Yeah you're not getting a 700k apartment as a sole trader making 50-70k a year lol. Even if you dumped your entire savings into the deposit, the repayments would be like 80% of your income.
I think regardless of how much you have saved, the banks might be tough on your serviceability of the loan. I would speaking a broker to see what you can actually borrow first.
If you have a gardening business why an apartment? I understand it could be all you could afford but I couldn’t imagine having dirty equipment and tools and having to live in an apartment. Unless it’s a decent spaced ground floor one with a shed or big garage.
You could start talking to banks about serviceability before you start putting offers in on property. Sounds like you're in a good financial position aside from the hecs so fingers crossed!
Look. You’ve got a masters degree in a field that can, if you break into it from the ground up, give you a great job and high income, especially in a mining environment. Especially with experience.
My advice is, don’t waste the time, work and effort that has gone into your education. You’ve worked so hard for that and have incurred HECS as a result. Maybe start the process of again applying for jobs in your field, give it another go mate.
I’m gonna give you honest feedback. Good stuff that you saved up. You just need to get a higher paying job. Can’t you scale your business to make more? If not you have some degrees, try get a job with that. You just have to bulk apply for like 50jobs. No point talking to banks etc your income is low. If you can’t be bothered then use that savings to invest in something, maybe your business?
Stay home and save and work on skills
Australia has gotten expensive and you truth be told you arent making enough relative to the debt and skills you currently have to build momentum if you were to move out
Your 5 year plan should be to increase income and bring down hecs debt
Also I would look at hiring someone to work for you outsourcing you work. This may mean less income from that business but will allow you more time to pursue other revenue sources or upskilling
Email a bank like Westpac etc, or a mortgage broker and ask for their thoughts, they should be able to give you an estimate.
Gotta adjust for having savings for maintenance, strata, council rates, utilities, vacation, hobbies, social, and emergency fund.
Might be worth going through your transaction history and putting together a spreadsheet of all your expenses.
That's a lot of rent to your Mum. Is that actually board and lodging? - i.e. rent + utilities + food + services like washing & cooking & cleaning?
Saving about 50k a year after tax, bills and expenses on your income of 50-75k is amazing. Your rent or board and lodging is $15600. You must be very frugal.
How do you do it?
Do you not have much of a social life? That might be something to consider working on. Do you have any hobbies or interests - they can be good ways to meet people.
It seems like you have kind of two good options:
One is to scale up your business. Perhaps offer new services like landscaping? Hire employees?
The other is to try again to get jobs with your degree.
Also...
Have you ever taken an AQ test?: https://www.wired.com/2001/12/aqtest/
1. I wouldn't pay HECS beyond the required payments, because 1) it's adjusted for inflation only each year, so will be the lowest interest rate you will pay, and 2) you only pay if you earn. If you lose your job, you will still have to pay your mortgage and other living expenses. Your HECS repayments go on pause, without penalty. You'll be glad of that if you get in financial trouble down the line.
2. Still on HECS - how did you rack up $140,000? Seems high.
3. $50,000 a year saved - champion, especially on your income. No other debt, also great.
4. 4.9% is a low return. If you decide not to buy a house in the near future after all, you may want to consider investing some of it in something else. Over the long run, it makes a difference.
5. I don't think you should buy a $700,000 apartment on your current income. It's too much. If you're happy living in an apartment, you can get something nice for much less than that. Also, I'm assuming an apartment works with your gardening equipment? You must have a trailer, right?
6. The housing market's kind of crazy right now. Consider waiting a few years and continuing to build your deposit. You could end up buying a comparable apartment at a lower price and with a larger down payment, meaning much less debt.
Faaaarrrkn hell 140K for hecs, what on earth? I used to think my hecs was too high, about $30K when I finished my grad doing electrical engineering in 2006, all payed off I think in 2016/17.
But $50-75K income from running a gardening business, OK. However, being able to save $50K/year while you are paying $300/wk boarding to your mum doesn’t sound right mate. Even after tax all expenses are taken out it is too hard to believe that you are saving $50K/year on that income regardless if you are completely writing a lot of the expenses on tax which I am assuming you are doing is still hard to believe. Your pre-tax earnings would def be much higher than $50-75K if you are saving $50K/year, probably best that you double check again.
Anyways, I don’t think you are any chance of servicing a loan for $700K. You may be able to find loop hole with a broker for the hecs debt part when applying for a loan I dunno as I can’t recall if I did report my hecs a long time ago when getting my first place, but still it’s a massive stretch as your loan to income ratio will be about 10:1. Normally you’ll need to be no higher than about 4 or 5, some lenders may accept upto 5.5. You possibly can purchase it on an investor loan which will still be difficult as most lenders will do for a LTI ratio upto 7 (or seldom 9) which is still going to be a battle for you to get which I wouldn’t recommend for you especially on that low income.
Time for a hard reset. Using your experience try get an sdr sales job, fix ur sleep schedule if needed, hit the gym, try to make ur business as least dependable on you as possible. Eventually buy an apartment rent out a room and go from there. Should take you 1-2 years.
OP, you are lying. You tell us you make $50-75k a year. Presumably, before tax.
Let's say, it's 50k after tax.
You pay $300 /week rent. That's $15k a year.
I assume you also buy groceries, petrol, clothes, pay bills, get haircuts etc.
At the lowest estimate, that's another $10k a year.
At most, you are saving $25k a year, not $50k.
Keep living with mom. Keep saving money.
Get a higher paying job, or start a side hustle. Your income needs to go up. Owning your own place a A LOT of bills.
Three hundred dollars a week is very cheap rent?
Very cheap rent to Mum and Dad was like forty bucks. I have a mate in my spare room and he pays two hundred.
When the economic disaster lots of broke homeless women will see you as her white knight or king king, but my best advice is to keep your trap shut go FIRE and Stealth Wealth, can you max out your super so you are below HECS payment thershold your debt wont grow faster than your property put it in your property pay it off in 10 years and retire and earn below the HECS debt theshold
2nd thought if ive stayed a virgin i would have not been scammed north of $50k from women extra $500-750k in personal wealth today, because now im single and happy, but would be nice being worth a $2M+ net worth than $1.2M, your small brain leads the big brain with massive costs, stay a virgin sex is so over rated and what to bust a nut
I don’t think there is any shame of living with your mum In todays financial crisis it’s the sensible thing to do. You may be helping your mum out financially too. I have adult kids living with us and I’m grateful we have the space to enable that.
The amount of HECs debt is irrelevant.
The bank only looks at how much you will pay per year then multiplies that by roughly 10 and decreases your borrowing capacity.
So I wouldn't pay it off, but on that income they'll probably lend around $250-300k
Earns 50k- 75k per.a pays $300p.w to mum Saves $50k. Bruv got some hydroponics growing in the basement too?
I'm more interested in how he has 140k hecs debt lol
It's from the masters of gardening
Masters in hydroponics
140k HECS and only earning 75k must hurt a bit. I have $40k after doing 2 masters, I really do wonder what OP studied.
Unlikely to be Sexology.
Bscience, doctor of Physio (incomplete) and masters of environmental management
Still seems like a lot. Where they all full fee paying and have you not paid any of it down yet?
The latter two were full fee paying , and yeah haven’t touch them voluntarily , maybe a few k from tax
Jim Penman of Jims Mowing got a PhD he managed well too
Can you expand on that? The masters I’m looking at (2 years masters course) are all way about that.
Look a Commonwealth supported places. Not all masters offer them, but they make a huge difference.
I was working while doing both part time, and worked between the two too, so they got somewhat paid down as I was doing them. The second was a commonwealth supported place, so it was a lot cheaper. So my debt is 40k, but the cost was obviously more than that. Worth it for me, as both resulted in pay rises that more than covered the cost in a couple of years.
Oh, got it! Thanks for the explainer :)
Right?! I just crunched the numbers my undergrad + post grad + masters wouldn’t even run me that much
The interest on their $200k would cover half their rent. Paying $300/week to live at home is not "very cheap".
He's paying the entirety of her rent I believe.
It's probably for board & bills not rent. It's pretty easy to save 50k in a year if you have a pretty minimal fixed cost that covers everything, never do anything and only leave the house to work.
Yep, confirmed. I help her maintain the garden which is extensive , but mostly reside in the basement watching David Attenborough
There's worse places to be mate. Don't pay off your HECS debt, honestly at the point it's at you'll likely have it forever. Mine is 1/3rd less than yours and I'm on a bit over 100kpa and have accepted that it'll be there forever. When you apply for a loan they don't calculate the amount of your HECS debt, just if you have a HECS debt. 20k effects your loan the same as 200k. Have have looked at any borrowing capacity calculators? On 75k the max you'll be able to loan is around 400k, you'll likely be lower be lower because you're self employed. Keep in mind that's the absolute max as well, with zero room for interest rate rises or emergencies. I got a place for 350k at the start of the year and some months I still struggle. After fixed costs + utilities I'm left with about $1k before I've driven anywhere or bought any food. Before you think about buying a place tho, you're in a pretty good position to do a bit of travelling if you've thought about doing that? If you google 'Overland Tours Asia' you'll find a bunch of companies that run group tours that are super fun, like [these](https://madventure.co.uk/new-asia-journeys/). I was super super shy at uni, but worked two jobs and had a bit saved up when I graduated so went on an overland tour in Africa, never having left the country before. Since the itinerary was organised and the group was the same it suited me really well, as I didn't have to stress about organising everything and had time to get to know everyone slowly. I too am a fan of David Attenborough, so going to on Safari all through Africa was absolutely amazing - Again if you google 'Overland Tours Africa' you'll find a ton of companies that run trips there.
Thanks for the advice, esp on travelling didn’t expect that but that makes sense.
I’m not here to offer any advice other than to say I wish I had 200k in the bank, a lush garden to maintain and David Attenborough in the basement.
There isn't an hope in hell you get anything close to 700k loan from that low income. Even if you have 200k in savings, you simply don't earn enough to even pay the weekly repayments. Though no idea how you are saving 50k a year, after bill/expenses etc. While also earning 50-75k. Something doesn't add up there.
And having such a big HECS debt.. what
My guess is that they spent ages mucking around at uni, likely doing a non Commonwealth support place masters, in an area which doesn't make them employable in that discipline
Hardly surprising. Many Australians leaving university now have much higher levels of debt than did graduates 10 or 20 years ago (let alone those who graduated back in the early 1990s when HECS began). In 2005-06, they had an average debt of $12,557. From then till June 2023 inflation increased 57%, which would mean that had the average size of debt increased in line with inflation held by people in their 20s should be $19,546 – instead average debt has risen by 145% and is $30,763. As always, nothing is being done about it, and students continue to take on large American-sized debts and the country just acts like all of this is normal. Fortunately I have my own (mortgaged) home and business so don't have to worry, but it's bleak out there for many others.
one degree costs $30k. This dude must have spent the last 10+ years at uni getting multiple degrees or failing one continuously.
I don’t know what this man did to rack up so much debt but my degree will be close to 90k 🥲 (arts law)
Is that full fee paying or HECS supported?
I think it's safe to assume it's CSP, given no prior study was mentioned so it's probably undergrad, and the poster is probably CSP eligible. An expensive Arts major and minor could definitely push that to $90k.
Oof. Seems high to me, I thought HECS supported places were a lot lower for undergrad.
Masters is like 65k
Degrees currently cost up to $16K per year. eg Arts/Law is five years and $80K. Medicine, dentistry and veterinary science degrees used to cost around $200K They were deemed 'essential' a few years ago and fees were slashed to $12k/year.
"hardly surprising" lol. 140k is just a little bit above the average of 30k don't you think?
lol thats great and all. This dude has over 4 times that ?
This bloke clearly doesn’t know how small service businesses operate 😂
How much for a lawn 2000 cash. Always a sucker
How do they operate?
Nice try ATO
Write everything off on tax? Laugh to the bank?
Not paying tax as a sole trader?
On the third tax bracket
Well the math isn’t mathing is the main issue
[удалено]
If you don't do anything it's not that hard to save money. He gave you most of his expenses, 300 for everything probably meals included
He's saving more money than he takes home... You can't do that unless, you know, you've not disclosed a source of income.
Sure, if they’re not paying taxes?
Probably could have asked the question without need to state you are a virgin, lmao. But hey
Vital ausfinance bit of information, my missus would be the top expense on a spreadsheet.
Other way round for me. She’s the tight one and I’m the 32 year old man with no children that has every toy you can think of haha
How does she allow you to have every toy conceivable? 😂
It's better to ask for forgiveness than permission would be my guess 😆
Vital? Na, goes without saying on this sub 😂
They were just saying what we all knew already, mums basement is code for virgin.
I'm more interested in the Australian house that has a basement.
It must be in a cold place. People put in basements when they have to dig deep foundations below the frost line.
Actually, it's good for escaping the heat too. OP could be in Coober Pedy.
It's like the age old question, what is the sound of one hand clapping? Is it a basement if the whole house is underground?
The Australian Antarctic Territory?
he didnt need to say he's a virgin that's the assumed default for /r/ausfinance i wonder what car he has???
Subaru forester 😇
his post history he is giving sex advice? maybe hes just joking
Yeah sex advice on reddit is mostly a joke.
>Yeah ~~sex advice on~~ reddit is mostly a joke.
They're giving you some context for why it's important to move and not just bury their savings in etf's
Step 1. Spend $200k on orgy. First problem solved. Step 2. 😑
I thought it was the basement that was a virgin
Shows character op didn't spend a pineapple and become
Odd way to say they have no dependents perhaps??
I didn't realise gardening needed 140k worth of qualifications. Also your post history wtf. Time to leave the basement asap.
Yeah flunked a Physio degree and got a masters of environmental management 4 years a go which I never found a job for
How have you not found a job in environmental management? Crazy
I applied during covid and having no luck I decided to start a business , I haven't checked back since, but hearing this comment I will do so
I graduated as a conservation biologist in 2013, got a consulting job in 2018 and into mining in 2022... Once I got into the industry I accelerated very quickly as the experience outside is still experience. Im 31 now. Dont give up trying to break into a role, move laterally if you need to nut perserverance will get you there.
I concur. Nut perseverance will get you places
Just keep nutting and eventually something will stick.
We’re looking for environmental advisors in my company all the time
Because companies only want experienced people. There's a glut of people with 1 - 2 years experience, then a lull of people with 3 - 9 years experience (cause people burn out or quit), and then niche market for people 10+ years who can be more selective about what jobs they take. Also, nicer jobs seem to be given to people with the luxury of nepotism :(
I’d drop that he had a masters and just get his foot in the door. We are still interviewing for graduates and you can climb quickly if your heads screwed on.
I know 2 people with that degree that claim they can’t find work in it
Go to networking events and hand out your card. Membership is 160 a year and they usually run monthly one night an evening.
You can literally apply to the gov talent pool as a graduate candidate https://www.psc.nsw.gov.au/workforce-management/recruitment/nsw-public-service-talent-pools Go get a cushy job
Maybe they meant $14k
Sole trader Gardner.... do you 'earn' $75k or have a taxable income of $75k $50-75k is a massive variance, maybe work out how much you earn as a first step.... I think for what you want to achieve you are short of income for servicing with HECS in place and short of deposit and the extra servicing required to borrow more if you pay off your HECS.... speak to a broker and get a gauge on what's realistic for you before you start making big plans
140k HECS is insane
[send help](https://i.imgur.com/QWot3fq.png)
His HECS is a dark souls boss.
I can’t believe your mother charges you $300 a week!! Go rent a room.
He's 30 she wants him out
Yeah that must be it lol
She ain't italian
Legit. $300 is not cheap rent for someone on that income, especially considering it’s family.
Not paying taxes runs in the family apparently.
Possibly includes food and bills.
I’m guessing that includes everything, food, utilities, and mummy cleaning up after them
Don’t forget the home cooked meals
All this demonstrates is that financial scruples are not genetic.
😂😂😂 He definitely didn’t get the tight arse from her.
Sounds like you’ve sodomised the both of them with this comment 😂
Haha yes, it does sound harsher than I intended! Just jokes op! 😬
It’s hilarious and funny. You’re great 😊
Plus maid service
Wait until she gets a massive tax reassessment on her principal place of residence now she’s been using it as an income source to receive rent from her son and has to pay capital gains tax on the appreciation since the 1980’s… Bankruptcy in your senior years
75k only lets you borrow around 400k.
Even that can be tough as a sole trader now. He'd want to have very stable earning history.
Hello. Most of these aren’t answering the the root of your question which is: “What are my barriers to buying a house given my financial situation? And does my HECS debt present issues?” So. The barriers that exist to you is your relatively low AND variable income. A bank will lend to you much more readily if you earnt a wage. Your income through your own business needs to be rock solid for it to get the same weighting in the banks eyes as someone in say a 60k wage from working admin FT. So! If you want to buy a 700k house- I would first say, buy a 500k house. Leverage the govt schemes to get past stamp duty and having a high deposit. You can. With no stamp duty you realistically just need 6-7% of a homes value in cash and you can straight up buy that bish. If you earnt 75k rock solid money (wage) you would probably be able to borrow like 300k? (Confirm via mortgage calcs- they are everywhere). So if you want a more expensive house, you either need a massive deposit- or grow your income. Massive deposit takes ages to grow on small salary- so earning more money just solves both of those problems. IMO if you want a 500k house as a solo person, you need to be earning at minimum 6figures. Ok- onto your next question. A hecs debt only affects you by lowering your income. You have mandatory minimum payments to make as income grows. Bank views your loan power as “total after tax income - regular expenses (of which hecs payments are)” if you had 3k hecs or 1 million hecs, the bank views it as if you will have hecs forever. My bank encouraged me to polish my hecs off (was 5k left) to increase my loan power by like 50k. I hope that helps. PS it is possible to get a loan as a business owner- you just need great documentation of earnings for a few years (3+ I would say)
The bad: sounds like you screwed up on your education preferences. Just because everyone can go, doesn't mean they should. You are focused on property rather than trying to understand more about yourself. The good: I can tell you that 30 is very much the equivalent of an 18 year old here in Australia. You aren't behind and you also have 60K net to your name. Keep exploring options as if you are fresh out of school. I have 35 year olds on my team who are pretty much like fresh grads. Only thing is they can't be bothered working at all. You are doing better already by just thinking you want to change something up in life. You can either get into a DINK set up OR take some of that money and try and get some life experiences under your belt. I would consider you very green based on where you are in life and how old you are. In Australia, you are doing ok, so don't panic. Most people at your age are similar.
Pls how is a 30 year old basically an 18 year old?
Testosterone deprivation epidemic
I have very high testosterone , almost as high as my HECs debt
40 years old here, It's something that you realise when you are near 40 that your 30 year old self was really just a baby, at least that is the consensus me and my friends have come to, sorry that doesn't really explain it but I don't know what else to say.
Thanks 🙏, this hit home. I will use that money to gain more life experiences, I have never been abroad before. Recently I made new friends who are going to take me to Bangkok , I hopefully will improve my outlook then!
Awesome. It is important to meet others from different backgrounds and cultures. I do not want to sound like a snob here, but you should try and meet educated people. They can teach you a lot of things to improve yourself, live better lives and manage the many obstacles life will throw at you. You may also learn you aren't suited to the narrowly defined path and ask for complete compliance here in Australia, so getting out and meeting people is important for you to reflect and learn. Always remind yourseld that you are doing ok and as I said, I have entitled 35+ people on my team that still live at home and they lack motivation to do anything. You are much better and have some fight in you.
Get into landscaping thats where the money is, clip on your masters credentials and gets some gov contracts to work on.
140k HECS debt to mow lawn
Have you seen how much a broker can loan you if you have a 140k debt? It will definitely work against you also, they typically loan less to single people vs a couple as your more of a risk defaulting. As a sole trader how long have you been running your business because that will take effect of your loan application too.
I don’t think I was even asked how big my hecs debt is when I applied for a home loan, just if I had one. On $50k the hecs debt will mean almost nothing since it will barely effect his income. His biggest problem will be his earnings and that he is self employed.
Didn't happen on ny 1st loan, but did happen on my loan this year. Hecs debt is more of a factor these days.
how the F did we end up in a society where we went from paying $200 a year for uni (1980s) to having 20 year olds $140,000 dollars in debt?! Dear OP. You can def change your life but I hope that you can make use of your degree perhaps by moving somewhere that has more of an environment near it ..
People here lampoon the OP, but the truth is many young people get easily sucked into the marketing/hype/pseudo-promises that universities sell on their masters programs. There's some value to them, but not this way and not to all - we forget they're also income generating revenue streams. They also still create real debts (whatever people might say about HECs being 'good' debts).
I doubt you will get a loan of that size... so keep saving and go pay a professional if things are that dire..
Change your profile photo asap
It looks like a hair is on my screen. Kind of cool
Yeah you're not getting a 700k apartment as a sole trader making 50-70k a year lol. Even if you dumped your entire savings into the deposit, the repayments would be like 80% of your income.
I mean with OPs maths of, I earn 50-70k a year, pay 300 a week in rent but somehow save 50k a year. I'm sure they could manage
I was thinking exactly this! 😂 Hopefully a typo in OP’s description.
Guessing 50-70k is the reported income and he pays the rent with his cash on the side jobs?
Just move into a sharehouse for a bit or something mate.
I think regardless of how much you have saved, the banks might be tough on your serviceability of the loan. I would speaking a broker to see what you can actually borrow first.
If you have a gardening business why an apartment? I understand it could be all you could afford but I couldn’t imagine having dirty equipment and tools and having to live in an apartment. Unless it’s a decent spaced ground floor one with a shed or big garage.
Average ausfinance enjoyer
You could start talking to banks about serviceability before you start putting offers in on property. Sounds like you're in a good financial position aside from the hecs so fingers crossed!
No need to pay your hecs off but your wage of 75k won’t be enough to borrow 500k
Why is your HEC debt so high?
Look. You’ve got a masters degree in a field that can, if you break into it from the ground up, give you a great job and high income, especially in a mining environment. Especially with experience. My advice is, don’t waste the time, work and effort that has gone into your education. You’ve worked so hard for that and have incurred HECS as a result. Maybe start the process of again applying for jobs in your field, give it another go mate.
I’m gonna give you honest feedback. Good stuff that you saved up. You just need to get a higher paying job. Can’t you scale your business to make more? If not you have some degrees, try get a job with that. You just have to bulk apply for like 50jobs. No point talking to banks etc your income is low. If you can’t be bothered then use that savings to invest in something, maybe your business?
If your addicted to porn stop
I read manga hentai, does that count as pork?
Stay home and save and work on skills Australia has gotten expensive and you truth be told you arent making enough relative to the debt and skills you currently have to build momentum if you were to move out Your 5 year plan should be to increase income and bring down hecs debt Also I would look at hiring someone to work for you outsourcing you work. This may mean less income from that business but will allow you more time to pursue other revenue sources or upskilling
$300 per week. Surely OP can do better than that.
Email a bank like Westpac etc, or a mortgage broker and ask for their thoughts, they should be able to give you an estimate. Gotta adjust for having savings for maintenance, strata, council rates, utilities, vacation, hobbies, social, and emergency fund. Might be worth going through your transaction history and putting together a spreadsheet of all your expenses.
What’d you accrue a 140k hecs debt from?
That's a lot of rent to your Mum. Is that actually board and lodging? - i.e. rent + utilities + food + services like washing & cooking & cleaning? Saving about 50k a year after tax, bills and expenses on your income of 50-75k is amazing. Your rent or board and lodging is $15600. You must be very frugal. How do you do it? Do you not have much of a social life? That might be something to consider working on. Do you have any hobbies or interests - they can be good ways to meet people. It seems like you have kind of two good options: One is to scale up your business. Perhaps offer new services like landscaping? Hire employees? The other is to try again to get jobs with your degree. Also... Have you ever taken an AQ test?: https://www.wired.com/2001/12/aqtest/
300 rent to live with your mum? Wow
1. I wouldn't pay HECS beyond the required payments, because 1) it's adjusted for inflation only each year, so will be the lowest interest rate you will pay, and 2) you only pay if you earn. If you lose your job, you will still have to pay your mortgage and other living expenses. Your HECS repayments go on pause, without penalty. You'll be glad of that if you get in financial trouble down the line. 2. Still on HECS - how did you rack up $140,000? Seems high. 3. $50,000 a year saved - champion, especially on your income. No other debt, also great. 4. 4.9% is a low return. If you decide not to buy a house in the near future after all, you may want to consider investing some of it in something else. Over the long run, it makes a difference. 5. I don't think you should buy a $700,000 apartment on your current income. It's too much. If you're happy living in an apartment, you can get something nice for much less than that. Also, I'm assuming an apartment works with your gardening equipment? You must have a trailer, right? 6. The housing market's kind of crazy right now. Consider waiting a few years and continuing to build your deposit. You could end up buying a comparable apartment at a lower price and with a larger down payment, meaning much less debt.
140 in HECS WHAT DID YOU STUDY
Nothing adds up How do you study so long that you have 140k in HECS And 200k in savings. How can you save 50k a year after everything, on **50**-75k.
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He don't only mow grass, he also sell it
Faaaarrrkn hell 140K for hecs, what on earth? I used to think my hecs was too high, about $30K when I finished my grad doing electrical engineering in 2006, all payed off I think in 2016/17. But $50-75K income from running a gardening business, OK. However, being able to save $50K/year while you are paying $300/wk boarding to your mum doesn’t sound right mate. Even after tax all expenses are taken out it is too hard to believe that you are saving $50K/year on that income regardless if you are completely writing a lot of the expenses on tax which I am assuming you are doing is still hard to believe. Your pre-tax earnings would def be much higher than $50-75K if you are saving $50K/year, probably best that you double check again. Anyways, I don’t think you are any chance of servicing a loan for $700K. You may be able to find loop hole with a broker for the hecs debt part when applying for a loan I dunno as I can’t recall if I did report my hecs a long time ago when getting my first place, but still it’s a massive stretch as your loan to income ratio will be about 10:1. Normally you’ll need to be no higher than about 4 or 5, some lenders may accept upto 5.5. You possibly can purchase it on an investor loan which will still be difficult as most lenders will do for a LTI ratio upto 7 (or seldom 9) which is still going to be a battle for you to get which I wouldn’t recommend for you especially on that low income.
Something doesn't add up bro Plus, $300/week rent is not excessively cheap, that's what you would pay for a room in a flat if you moved out
What a $140k Hecs debt gets you in 2024. The ability to run your own gardening business.
$250 bucks will shorten title, a little .
And I thought my HECs debt was bad….
How the hell did you get a HECS debt of 140K? You would have had to have been at university for over 10 years and studying law or something!!
Finance 101: Don't touch a large HECS debts, or a debt not soon to be paid off involuntarily, only make involuntary contributions.
average mpmd enjoyer
Derek here !
Try something more believable next time
Wtf did you do at uni that you have 140k in HECS
Focus on doing jobs for NDIS recipients and charge 4x your normal rate 👍that’s the Aussie dream
That’s not the dream, that’s the reality.
Time for a hard reset. Using your experience try get an sdr sales job, fix ur sleep schedule if needed, hit the gym, try to make ur business as least dependable on you as possible. Eventually buy an apartment rent out a room and go from there. Should take you 1-2 years.
200k sitting in bank ? Anything in stocks? Or managed funds? The savings account interest hasn’t been great for the last 5-10 years
Tell me your secret OP… I also wanna live in my mum’s basement and play MMORPGs errrrrday
That’s a large loan for someone on 75k annually dude. I would look at figuring out how you can make more money
Talk to a broker they will give you advice and tell you to do a budget to get an idea of how much you can borrow
How do you have 140k in HECS debt and earn that much.
But in your post history 2 years ago you claimed to be pretty sexually active with a couple of chicks. Something ain't adding up here
He’s a “born again virgin”
OP, you are lying. You tell us you make $50-75k a year. Presumably, before tax. Let's say, it's 50k after tax. You pay $300 /week rent. That's $15k a year. I assume you also buy groceries, petrol, clothes, pay bills, get haircuts etc. At the lowest estimate, that's another $10k a year. At most, you are saving $25k a year, not $50k.
You on the right path in life brother 👍
Make up for lost time and spend it on hookers 👌
Keep living with mom. Keep saving money. Get a higher paying job, or start a side hustle. Your income needs to go up. Owning your own place a A LOT of bills.
None of this adds up
Ausfinance, but "basement" dweller. Story doesn't check out seppo.
You should pay for a prostitutes
Should I do that before or after I pay off my hecs? Or concurrently?
Three hundred dollars a week is very cheap rent? Very cheap rent to Mum and Dad was like forty bucks. I have a mate in my spare room and he pays two hundred.
I actually don’t know any Australians with a Basement? 🤔
It’s more of an garage down a hill really, a glorified basement if you will
I lived in my Mums Garage in the backyard until I was 26 too ha ha
When the economic disaster lots of broke homeless women will see you as her white knight or king king, but my best advice is to keep your trap shut go FIRE and Stealth Wealth, can you max out your super so you are below HECS payment thershold your debt wont grow faster than your property put it in your property pay it off in 10 years and retire and earn below the HECS debt theshold
2nd thought if ive stayed a virgin i would have not been scammed north of $50k from women extra $500-750k in personal wealth today, because now im single and happy, but would be nice being worth a $2M+ net worth than $1.2M, your small brain leads the big brain with massive costs, stay a virgin sex is so over rated and what to bust a nut
I don’t think there is any shame of living with your mum In todays financial crisis it’s the sensible thing to do. You may be helping your mum out financially too. I have adult kids living with us and I’m grateful we have the space to enable that.
Take $1000 of that money and spend it on hookers.
Thank you, will claim for tax 😎
Use your savings to buy a nice prostitute
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The amount of HECs debt is irrelevant. The bank only looks at how much you will pay per year then multiplies that by roughly 10 and decreases your borrowing capacity. So I wouldn't pay it off, but on that income they'll probably lend around $250-300k
a lot of scrutiny on loaning practices unless it's the government giving you the loan.