![]() A fixed-rate loan may limit your choice of lenders as your current lender may charge you heavy break costs. Your fixed-rate loan expires in January - consider leaving it variable. Offsets are a good idea are if you plan to convert your home to an investment property later. We have also owned acreage there - so we have done what you are wanting to do. Shares may not be the best vehicle for saving to buy property, says Steve Greatrex, founder of Adelaide-based independent financial planning firm Wealth On Track.Ĭlare and Michael, my wife and I also used to live in Orange. What should they consider when buying land and building a home? They would like to buy some land in the next five to 10 years. "Or should we just be concentrating on paying off our current mortgage?" But they are also quite keen on an investment property. They have been reading up on investments such as Vanguard's exchange-traded funds. They want to know what they should do with their finances, given that Clare will take a break from working. Their dream could take several years to become a reality, says Michael, who estimates they would need around $900,000. They would run a hobby farm while working in town. Ideally it would be a 20- to 30-minute drive from Orange. Michael says the median home price in Orange has jumped by $45,000 in the past 12 months, which is heartening as they bought a four-bedroom house there two years ago.Ĭlare and Michael have a dream of eventually buying two to four hectares, building a comfortable home - possibly self-sufficient and off the grid with solar panels, battery storage and water tanks. Gold and copper mining activity in the Cadia Valley has also spurred growth in the town. With a population of 42,000, it is the 36th largest town in Australia and is known as a food and wine destination as well as a medical hub with a recently built 200-bed hospital. Orange is experiencing a surge in young professionals moving to the area. ![]() It is not too far from Clare's family at Barellan. Clare is a primary school teacher and Michael a radiographer. This is what Clare and Michael have been doing: checking their health cover, making sure they have enough savings, as they will have to live off one salary, and increasing their insurance through their super fund Hostplus to cover the needs of a dependant and their debts such as a mortgage.Ĭlare and Michael chose to live in the NSW country town of Orange two years ago after working in the UK for a few years. When a baby is about to arrive, it is a great time to review your finances and goals to ensure you are on track. Instead, consider selling your home and buying some acreage with a home. Don't buy a block of land and increase your mortgage repayments. ANSWERS: Shares are not appropriate for your circumstances as a downturn will delay your plans to buy a farm.
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