Hi, first post here.
I'm a 22 year old from Rotorua who has decided to go to university in 2017. I will most likely be going to Otago university where I hope to study med which is 6 years long.
By the end of next year, I should have about 35-40k saved up. I want to buy a house to live in when I move down to Dunedin and get flatmates to pay off my mortgage so I can live rent free. This will be my first home. My plan is to use 30-35k as a 20% deposit on a 3 bedroom house/flat which goes for around $160-180k.
If I bought a $180,000 house with a $36,000 deposit on a loan term of 30 years, then I would have $397 in fortnightly repayments based on a 6% interest rate. That's basically $200 a week. I would have to pay rates which would be around $35 per week off what I have seen. Plus house/contents insurance would be around $40 per week (not too sure on that one)? House maintenance costs, I'd factor in at $20 a week so total expenses weekly would be roughly $300 per week.
If I were to get 2 flatmates paying $120 each, that would be $240 weekly income. That would leave me $60 to pay myself. I believe that I would also be eligible for the student allowance which would pay me $210 per week which would make my total income $450 per week. I could probably work on top of that, although I don't want to if I don't have to, at least not for the first year as it is extremely competitive and I want to focus on studying to maximise my chances of getting into med. I realise that the rooms may be vacant during the holidays but I can make up for the shortfall myself as I will most probably be working during the holidays.
So I had a few questions that I'm hoping somebody could answer for me. These are:
Thanks in advance!
I'm a 22 year old from Rotorua who has decided to go to university in 2017. I will most likely be going to Otago university where I hope to study med which is 6 years long.
By the end of next year, I should have about 35-40k saved up. I want to buy a house to live in when I move down to Dunedin and get flatmates to pay off my mortgage so I can live rent free. This will be my first home. My plan is to use 30-35k as a 20% deposit on a 3 bedroom house/flat which goes for around $160-180k.
If I bought a $180,000 house with a $36,000 deposit on a loan term of 30 years, then I would have $397 in fortnightly repayments based on a 6% interest rate. That's basically $200 a week. I would have to pay rates which would be around $35 per week off what I have seen. Plus house/contents insurance would be around $40 per week (not too sure on that one)? House maintenance costs, I'd factor in at $20 a week so total expenses weekly would be roughly $300 per week.
If I were to get 2 flatmates paying $120 each, that would be $240 weekly income. That would leave me $60 to pay myself. I believe that I would also be eligible for the student allowance which would pay me $210 per week which would make my total income $450 per week. I could probably work on top of that, although I don't want to if I don't have to, at least not for the first year as it is extremely competitive and I want to focus on studying to maximise my chances of getting into med. I realise that the rooms may be vacant during the holidays but I can make up for the shortfall myself as I will most probably be working during the holidays.
So I had a few questions that I'm hoping somebody could answer for me. These are:
- Will the income from flatmates count as personal income? Meaning will I have to declare it to the IRD or Studylink? I asked a friend who is studying to be an accountant and she said that anything you receive from someone living in your house doesn't have to be declared.
- Should I use an interest only loan if I can? This would reduce my mortgage repayments to $166 per week. This would relieve pressure on my student budget and I can simply change to a P&I loan once I graduate and start earning a proper income.
- Will the bank approve this loan as I will be a full time student?
- In general, does this plan sound like a good idea? Or would I be better off leaving the money in the bank and renting down there?
Thanks in advance!
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