Single buyer looking to retire

Household income $62,000/year, $15,000 deposit

Peter is a 58-year-old, with a full-time job earning $62,000 a year. He has a car loan balance of $5,000. As Peter is hoping to finish working in the next 10 years, so he wants to buy a home that will give him some security in his retirement. He is also sick of rental inspections and having to move to a new house every time the landlord puts the rent up.

To help him save money, Peter has been sub-letting a spare bedroom at the property he is renting.

Through HomeSeeker SA, Peter finds a three-bedroom home being sold as a house and land package priced at $260,000 in Elizabeth Park. This is an easy commute to his workplace in the Salisbury. The home is being built by the SA Housing Authority under the Affordable Housing initiative and is exclusively available to eligible buyers through HomeSeeker SA.

Peter is not eligible for the First Home Owner Grant, but through HomeStart Finance he can access a Starter Loan, which will help him with upfront costs. 

Peter worked out his finances as follows.

Monthly household income after tax

$4,178

Home purchase price

$260,000

Stamp duty and other fees

$8,732

Borrowed amount ($268,732) less Starter Loan ($8,732) and deposit ($15,600)

$244,400

Monthly repayments on loan

$1,286

Disclaimer

This fictional case study is based on real life experiences of home buyers. Before buying a home, it is strongly recommended you seek professional advice on your personal financial circumstances and your ability to pay a mortgage.