I am in the same boat

thanks so much for all the responses, some great advice! i have spoke to ANZ briefly while i was doing some banking and they consider my centrelink benefits an income (albeit a low one!). i will be meeting with them next week to get at least get an idea of what rental income i would need in order to support mortgage payments. i will certainly be giving centrelink a call and checking their website. i am not too worried about losing benefits if it means getting myself into the market and eventually having a house to buy. thankfully i have a very supportive family to help me out, and returning to work next year will boost me up again. but definitely some homework is in order! thanks again everyone, all comments and advice are much appreciated!

Start researching lenders and then see what they offer and if they are willing to lend to give you an idea, also seek financial advice as it is a big step in your life

Talking to a financial advisor is a must, they can tell you everything you need to know.

See a financial planner the bank offers a service or go independantly. What happens if you get sick are you able to pay the mortgage. Interest rates wont stay low forever.

As mentioned numerous times again it’s wise to crunch numbers and seek professional advice from a Fin Officer esp one who understands Centrelink payments, income and assets test affecting your Single Parent Payment. I agree with Kristie Rivette, check out the website

talk to a financial advisor who can put you in the right direction

We are in Victoria, and with my husbands income and me with no income other than centrelink and classed as low income earners, banks were funny on giving us a loan to buy so we never got to buy, even though we could actually afford the costs of what we were looking at. They are harsh on single income earners especially with dependants as it is, let alone I dare say ones not with full time employment. I think your safer waiting until you return to work, it will give you better options. Maybe there is something out there that can help you, but it will definitely pull you back to limit choices on loans / interest etc

Your bank should have a financial advisor that woild charge you for advice I would talk to them

Good luck

also, once your child turns 6 your payment change dramatically, depending on your situation, but something you should look into, as many single parents have been caught

good on you for saving, but remember the money you save is taxpayers money. It is a safety net to ensure you get by. Just remember there will be some very upset people out there that would be very upset to know their taxes have purchased your home, whilst the rest of the people go to work and have a family to support while they build their home portfolios.

You can always make an appointment to talk to a financial advisor at the bank and see what they come up with.
From my knowledge centerlink reduce payments for any income you have and also assets…an investment property will be classed as assets so be a little careful. its differant to having a property that you plan to live in.

most of the big 4 banks will consider you a viable option especially with a large deposit hun.. Shop about and just see what they can offer.. If you negatively gear it, even though the rent is income – it wont effect Centrelink greatly.

As far as I know, as soon as you have another income, Centrelink will reduce or stop your payment. I suggest you should see a Finance broker. It’s worth the money for some expert advice, that knows all the in’s and outs, each bank and their different policies and also can advise you on property investment, etc.

If you jump onto the Centrelink website and look up the payment you receive it will tell you the eligibility criteria is, what assets you can own and how much you can earn before your payments are effected. You may get away with an investment property as you don’t already own a primary residence. If it is rented it might be just a matter of declaring your income from the rent (minus all your tax deductible expenses, so basically you claim rent as: Rent money minus expenses such as rates, water, repairs, maintenance, real estate fees (if you don’t go private) insurances, depreciation on hot water systems, carpet, appliances etc) So even though your rent may be say $200 a week, once you minus the claimable expenses you may only receive $150 which is the amount you have to claim to Centrelink as your income. You’ll need to crunch some numbers and see if it suits you to do it now or once you go back to work.

Contact yellow brick road they give advice not just brokers

They say now is the time to buy, rates are low, you can lock in a good rate and earn decent rent. As long as you have a great Accountant to help you.And always remember, even if you only have it for a year, you can always sell it if you need to. Goodluck.

another thing to consider is how long you are eligible for the sole parent pension and if it dropped how would it affect your ability to pay the mortgage. I have a friend who had her sole parents benefits drastically cut when her son turned 8. Don’t know if there are different classes of sole parents pension so worth finding out how long you are eligible to receive it.

I would wait. Having a low income you don’t have heaps of room to move if interest rates go up. Once you have an income from work you will have a bit more security. Also remember the costs of looking after the house if things get damaged or broken will need to be covered, and if you don’t have a renter in the property you will still need to pay mortgage. Maybe consider a defence house – they do all the maintenance for you and guarantee rent even if house is empty.

Wait….it really is only worthwhile to have an investment property whilst employed……you are better to look at higher interest bank accounts like ING….and then at a later date review your options. Maintaining an investment property can also have other issues and surprise expenses – it will not be just the cost of the loan, you will have addition costs and potential issues – there are other ways of building wealth – a financial advisor is worth a visit.