QUESTION:
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My partner and I work full time, with combined earnings of $167,000. We have $170,000 in savings save $5000 each month, and have no debt. I contribute $350 a fortnight to super and have $40,000 in my fund; my partner contributes 15 per cent% and has $60,000.
We currently rent, paying $1950 a month, and hope to start a family within the next two years when my partner will stop work. We are thinking of investing in the share market and property, and would like to buy our own home, but are worried about being over-committed. We have met financial advisers and found they did not seem to have our best interests as their primary focus. Any advice on the best options to build wealth would be great.
ANSWER:
Your best course of action will depend on your goals. Based on what you have said it would seem that acquiring your own home is your favourite option. If this is the case you should do a budget on the assumption that you have just one income and work out how much you could afford on loan repayments. Add another $2000 a year for home ownership costs such as rates insurance and maintenance. Once you've done that, talk to a lender to find out whether you can buy property in the price range that your savings and repayment capacity will allow.