Q&A

Bluey is keen to live in his own apartment, but …

Now is not the right time to buy

Q I am 48 years old, medically retired with a wife and a young child just starting school. My wife does not receive an income as she is not working.

I want to buy an apartment to call our own. I am open to using it as an investment and renting elsewhere. The asking price of this apartment is about $510,000.

I have access to my super of $540,000. I have shares worth $310,000, with $50,000 owing on the leverage account, so $260,000 of those shares are mine and paid for.

I also have $270,000 in a cash bank account. The only bills I have are for rent, food and other normal living expenses.

I do, however, pay $1000 child support every month and I have six more years to go. My medical retirement wage is about $60,000 a year now – a rather large drop, but I have saved a little.

So I don’t know what would be the most sensible thing to do here. Can you help me please?

Do I buy and live in the apartment now? Do I buy it as an investment to live in later? Do I use my own money or borrow? I am so confused. I just think I need to get a property under my belt now because I don’t want to be old and having to be at someone’s beck and call as a renter.

G’day Bluey. I totally agree, you are right to want to own a home. That is really the primary objective. The confusing stuff, such as whether you rent or live in it, is secondary.