Why can't some people save for a house deposit?
It must be tough being a childless couple trying to buy a house these days. Especially when you`re earning $130,000 and can't even save 15 percent of that income towards a house deposit. Previously they were throwing "dead" money on rent, now they`re throwing even more" dead" money on interest payments and their loan could be worth more than their home for one reason: They didn`t save.
Heres a couple with a $120,000 income. They pay $900 a week to service a 375k mortgage.That's $48,600 a year. They have a 100 per cent loan because they couldnt save. And here is another couple on a similar income who say they can`t have kids because of their high mortgage.If they had saved just 40 per cent of their income, they could have had a 25 per cent deposit on their home in just two years.
Because they didn't save, they now have to spend more than half their income on mortgage payments.
I`d like to know this. Now they`re paying $48,000 a year on a mortgage, why couldn`t they save at least $500 a week for two years before spending $900 a week plus rates and insurance on a house. They`d then have a $52,000 deposit and much lower mortgage payments.