50 is the New 40
Hi Scott,
I am a recently separated woman of 50. After settlement, I might get about $140,000. First, what are the chances of me getting a loan at this age? (I earn $70,000 a year.) Second, if I do get a loan, am I better off buying two smaller investment properties to rent out or one to live in?
Thanks,
Donna
Hi Donna,
Fifty is the new 40! You’re still young, though a bank will look more closely at your ability to pay a loan than with someone younger. What’s more important to a lender, though, is having a secure income and a decent savings history.
Assuming you’re planning on working until retirement age (which is 67 for you), you have 17 years to repay a mortgage. That’s totally achievable, given you’ve got a very healthy deposit.
I’d ditch the idea of buying two smaller properties. Instead, buy a home for yourself and make getting rid of the mortgage ASAP your priority.
If you want a tax-effective way to secure your retirement (which you also need to do), start salary-sacrificing into super. Yes, that’s going to be tight on your income, but plenty of people have bought a home, and topped up their super, on much lower salaries.
Scott