Ashley is a 27-year-old dental assistant who lives at home with her parents and is looking to purchase a property of her own. She is cautious about purchasing a home, but wants to move out on her own and set herself up financially for the future.
Ashley earns $62,000 gross per annum and has focused on her finances the past few years to save a $5,000 deposit. She also has a $10,000 car loan.
Through HomeSeeker SA, Ashley has located a brand new two-bedroom home in Elizabeth Park worth $260,000, which she feels would be a great first home as it is located between her parents and where she works.
The property developer has a requirement to provide at least 15 per cent of the homes in this apartment building at an affordable price, and these are exclusively available to eligible buyers through HomeSeeker SA.
Ashley is eligible for the First Home Owner Grant and a Starter Loan that contributes up to $10,000 towards fees and charges.
Ashley worked out her finances as follows.
|Monthly household income after tax||$4,178|
|Home purchase price||$260,000|
|Stamp duty + other fees||$15,514|
|Borrowed amount ($275,514) – deposit ($5,000) + FHOG ($15,000) + starter loan ($3,314)||$252,200|
|Monthly repayments on loan||$1,327|
This fictional case study is based on real life experiences of home buyers. Before buying a home, it is strongly recommended you seek professional advice on your personal financial circumstances and your ability to pay a mortgage.