How much of your income (%) does your ppor cost you a week?

OP, don't forget to add in childcare fees.

If your wife returns to work and you have two kids in full time say care in Sydney - that's close to $50k a year AFTER tax gone. What does that do to your numbers?

Also, rather than 4% I'd use long term average interest rates around the 7% mark. It's great that they're lower now, but you can make hay while the sun shines and pay things down (or offset) more aggressively until the rates hit the long term average - and if it even shoots over to 9% - at least you'd have built up a buffer.

 

My PPOR is nearly a hundred years old. No need for a baby sitter. Perhaps an aged care nurse?

 

I did this for most of last year after my husband lost his job. It wasn't ideal but was still quite doable

 

Mine is currently 25% although I'm going to increase this to 35% to pay down the mortgage faster. Original allocation was 30% of income based on 8% interest rate. The banks could've lent me more but like @gman65, I'm old enough to remember 17% interest rates and I'm a big believer in buying what you can afford. Plus I like to have a bit of money left over for the occasional smashed avocado breakfast.

 

I REALLY did not want to read this thread as I have avoided doing the sums:

29% of two incomes before. 47% of one income after (now).

We are very fortunate and doing ok - not investment bankers - but for the average young family in Sydney, it must be very difficult. I think the rent + invest strategy would be the right way to go (which we did for a long time to get this far).

You do get a max of $7500 per child back in childcare (which in the above example would bring the $50k back to $35k). Would still be cheaper to buy a childcare centre... hmmm....

 

EDIT: I meant buy a childcare centre not run childcare centre

 

Rent is about 25%. When I had a job it was 10%.
I have almost always rented, so can live in much better places for the same money as owning.

 

@ IR 3.88% with both incomes our IO payments make up 22% of our income.
With only my income, 54%.
With only my Partner's income , 37%.

We've just purchased and there's something about the idea of "owning" your own space that I quite enjoy. Renting didn't suit us.

 

Be careful about dream homes...

True story: a few years ago, friends of ours came to visit us in our humble suburb....single income family..if they had bought here, they would be mortgage free or at least service the debt quite comfortably..instead the hubby had his snooty antenna up and chose to buy in a suburb with twice the mortgage...

Years later (now actually), hubby is 57 and highly stressed , still servicing that bloody mortgage with NO INVESTMENTS to boot, house is too nice to rent out, very expensive to upkeep...impossible to put in a dual grannyflat for extra income ..in other words, the only alternative is ...to downsize...and guess where they are looking at now?

Now, if they had done things the other way round...

 

Oh...to answer OP's question, PPOR payments as a % of my income is NEGATIVE...go figure...

 

Are you renting part of your home out? or maybe solar panel

 

27% if considering all investment income
33% for just mine/wives income
57% of just mine income (did this when planning to have second child)

 

20% of my take home pay. Interest is P&I at 4.11%.

 

None as its 100% deductible debt (used for investment purposes) with a personal split of 100k as a buffer thats just about always fully offset. Some of the deductible debt is offset at times as well. Happy days

 

31.3% based on PPOR P&I interest / income per week.
I can bring it down to 19.3% as soon as I switch it to IO (in progress).

 

To clarify - I included the $7,500 deduction you get

I used a rate of $140 a day for 5 days a week for 48 weeks. That leads to $33,600. Minus $7,500 - that's $26,100. For two kids that's over $52k. Rates do come down a little though the older your child gets.

 

Now we know what you guys do with all our money, err your commissions.

 

Oh I could tell you stories that have left battle scars and most who have achieved a level of success would likely have faced a similar fight.

The spoils are there for those who persevere, making adjustments along the way and most importantly never give up. Aint denying that but that can be said off all endevours in life.

 

2.5% on net - I hate PPOR debt

 

Well we didn't feel comfortable committing to the house after running all figures. It sold on the day and feel disheartened actually. Never cared for ppor prior as I've always seen it as a basic need and any clean house was ok. Not meant to be.
This was the house, photos don't do it justice as so much detail up close.

https://www.realestate.com.au/prope...e.com.au/property-house-vic-macedon-123849350