First Home Buyer - Commute and Buy or Rent and Save
Hi everyone,
This is my first time posting so I apologise if it’s a little clunky. My partner M29 and I F25 are finally getting serious about buying our first home, but we’ve hit a crossroads and could really use some perspective from people who are not our friends and family.
Income: $74k (him) + $60k (me) = $134k combined p/a, which I know is low, but both have confirmed pay rises coming soon.
Debt: I have a $55k HELP loan (currently under the repayment threshold). No other debts.
Goal Purchase Price: $600k–$700k.
Target Deposit: $50k+ (aiming for the First Home Guarantee/FHBG to avoid LMI with a 5% deposit).
The Dilemma:
Right now, we each live about 1.5 hours away from where we work (3 hours round trip, daily). To save as fast as possible, we are currently living apart with our respective families to keep costs down. We desperately want to live together and cut the commute.
We are debating two options:
The 12-18 Month Sprint: Stay as we are (living apart, massive commute) and try to save over the $50k in one year. It means another year or so of burnout and being apart, but we could get into the market by mid-2027.
The 3-4-Year Marathon: Move closer to work and rent together now. Our commute would drop significantly, but because of rent/bills, our saving capacity would tank. It would likely take us 3+ years to hit that $50k goal.
My concerns:
Is a $700k mortgage even realistic on a $134k income in today’s market?
Will property prices just outpace us if we spend 3 years renting?
Has anyone survived a 3-hour daily commute while saving?
We are curious about the FHSSS for the tax benefits, but I have concerns about the long term impacts on our super. Is it worth the risk, if there is any?
I’m wary of the government 2% co-ownership scheme (Help to Buy) and would prefer to own 100% via the FHB. Is that a mistake?
I would love to hear from anyone who has any advice at all, I’m feeling so overwhelmed with making the “right” choice.