Just got onto the property ladder at 48....after a career in banking

Wow...I read this story...and it astounds me how a woman in banking salary aged 48 did not get into her home .....she downshfted here career...but what about the 27-30 years she was working? In the end she bought a 600k property......just. It says she earned 6 figures previously but a home was only a consideration now. Seriously.....

Sydney woman buys first home despite losing ‘six-figure salary’

 

Yeah, I read that this morning and thought.. good luck paying the mortgage for the rest of your working life.

Assuming she retires at 65 (and assuming she paid a 20% deposit), she'll have to be paying $3,200 per month, to own the little house by retirement. Not including rates, water, elec etc..

She's not going to have much of a retirement..
What was she doing with the money whilst in banking?

 

From the article it seems her previous aspirations were just too high. She was sensible enough to understand that if she bought, she would be “trapped” in her high-income career to afford the mortgage and lifestyle.

Clearly, at that stage of her life, lifestyle was more important than home ownership. Not everyone has the same aims or priorities.

So she changed careers, saved, and bought a more modest first home.
Marg

 

I know someone who took out a $3M mortgage three years ago when they were aged 60 .

 

I'm surprised the bank would give her the money given proximity to retirement age (aka non-job-producing-income-age) and presumably a lack of passive income streams to help repay the mortgage... Maybe it was a low LVR.

 

Gulp! I never thought of 48 as being close to retirement age!

The good thing is no one has to retire at 67 - many people prefer to keep working.

 

Wtf, this is the saddest story I’ve read. This is what you read your kids at bedtime to ensure they don’t grow up to waste their lives.
And she worked in a bank on 6 figures until age 42.
Are these the people who ring you at work from “ABC Bank” to talk to you about better management of your money? The ones I reply with “What would you like to learn!”

 

Good point @Rolf Latham

@Joynz I meant more in terms of how the bank would see it. Potentially only 12 years remaining in the workforce for this borrower, and thus only 12 years of earnings to fund repayment of the debt

 

If only that were that easy now days

 

She should have bought up in the Druitt at the beginning of her career. She could retire in one of her IPs and run up and down her street yelling "I only paid $30K for my house, who's laughing now lol".

 

"She’s now the proud owner of a one-bedroom, one-bathroom apartment in Lewisham in Sydney’s inner west, which she bought for just over $600,000".

Not the best property choice either!

 

Mate she is inner city trendoid....the Druie would not enter her voculabary....dems why you da Boganaire!

 

Sorry Marg...have to disagree.....lots of options in Sydney within 15 klms near rail...for well under 600k...it would seem that these are not good enough.

I see a lot of professional men/women in Sydney who turn their noses up at a lot of things....they even turn their noses at people who are not mixing in the so called well paid financial services circles...it seems to be disease of elitism in Sydney.

You even see it out West....

 

The subject of the article didn’t ‘turn her nose up’ at mixing in non financial circles - in fact she switched careers to a lower paid but more worthwhile job.

 

It’s a PPOR - anyone is entitled to live where they want to, whether or not it is the “best” choice in someone else’s opinion. Saying other areas “seem not good enough” is a bit judgmental given that no reasons were reported for her choice.
Marg

 

Well...I am sure she did before ...otherwise...she would have got into property much earlier...there are affordable places even in Sydney.

Believe me..I understand these corporate types well....

 

Well....there are consequences...if it is not the "best choice"...then she made it on the property ladder late. I get irate when people say you got lucky.....you got in early...the fact is my first one was less than ideal 2 brm unit which was 52 sqm...

 

She works for a NFP - has the ability to take $ paid directly towards some expenses without paying FBT.

She qualified for the fhbg (no stamp duty either).

Not all pay packets are equal.