When joining the military, you can sell your house, rent it out (self-manage or use an agent), or even use it as an investment property, but you need to balance this with potential moves (PCSing) and military housing benefits like BAH (Basic Allowance for Housing) or DHA, often requiring professional financial advice and landlord insurance to manage the risks and opportunities of being an out-of-state landlord.
The Army will provide you housing while you're enlisted, or give you BAH (an allowance to live off base)if you qualify. Most of the time you have to be married/have a family to qualify for BAH, and the BAH you receive depends on the price of living in the area.
I would store your stuff in a storage place where you are and when you are moving to your first duty station pick it up or have it shipped. I know some storage places will hold onto your stuff for a short period of time and then ship it at a later date.
Defence offers housing options and assistance for members and their families. The options and assistance available depend on your rank, your family circumstances, and if you own a suitable home in your housing benefit location.
The Home Purchase Assistance Scheme (HPAS) is a one-off payment to help buy a home in your current or next housing benefit or family benefit location. The Home Purchase or Sale Expenses Allowance (HPSEA) is a reimbursement for some costs related to selling a home as well as buying another.
For a house priced at $800,000, this means you would need a minimum deposit of $160,000. This 20% deposit reduces the lender's risk and eliminates the need for LMI, which is an insurance policy that protects the lender if the borrower defaults on the loan.
Is $30,000 enough for a house deposit? It can be, especially for properties under $500,000 or if you're eligible for First Home Guarantee or First Home Super Saver Scheme. You may still need to pay Lenders Mortgage Insurance (LMI).
To buy a $650,000 house in Australia, you generally need a gross annual household income between $100,000 to $140,000, with figures varying significantly by location and lender criteria, requiring a strong deposit (around $130,000 for 20%) and managing loan repayments to not exceed 30% of your income to avoid mortgage stress, often necessitating a joint income or substantial savings, as highlighted by financial experts and data from sources like Fundd, Finder, and Real Estate.
Cheapest housing options include renting subsidized/social housing, becoming a caretaker, or alternative structures like tiny homes, RVs, or container homes, while for buying, look at fixer-uppers or remote rural properties, modular/prefab, or barndominiums, with cost-saving strategies focusing on location, condition (e.g., fixer-upper), and non-traditional builds like steel frames.
With a $1,000 weekly income, you can generally afford $250 to $300 in weekly rent, based on the common 30% rule (30% of $1,000), but some sources suggest a lower amount (25%) for more savings, making $250 a comfortable target, while prioritizing your overall budget is key. Aim for around $1,080 to $1,300 monthly, but this depends heavily on your other expenses like food, utilities, and debt.
By law, a Soldier with over eight years of active Federal Service is eligible for disability compensation even if the condition is Exist Prior to Service (“EPTS”). The eight years of active service do not have to be continuous; however, you must be on active-duty orders of more than 30 days for this rule to apply.
Prohibited items include: weapons, ammunition, drugs, alcoholic beverages, photographic equipment, and recording devices.
A military "klick" is a colloquial way to express the distance of one kilometer, or about 0.62 miles.
Debt limits vary by branch, and policies may change over time. According to retired servicemembers: Air Force: Debt may be an issue if monthly debt payments are more than 40% of expected military pay. Mortgages and some student loans may be excluded from this calculation.
The Army Housing Online User Services Website provides Family Housing floor plans under the AFH floor plans tab. Will military members still have the option to live off-post? Yes.
Living in unaccompanied housing, or barracks, as a single service member. During basic training and initial job training, all enlisted service members are required to live in the barracks. When service members move to their permanent duty station, only single members are required to live in barracks.
Choose cheaper recipes
We're not suggesting that you eat beans on toast every day, but following budget recipes is a great way to live frugally and save money. There are plenty of money-saving meal ideas available online. You may even want to plan your meals around current supermarket offers.
Bonus tips on how to buy a house with a low income
A $1 million retirement fund in Australia can last anywhere from under 20 years to over 30 years, heavily depending on your annual spending, investment returns, and whether you receive the Age Pension, with $40,000-$50,000/year lasting longer (30+ years) and higher spending (e.g., $60,000+/year) depleting it much faster (20-25 years), while combining with the Age Pension significantly extends its longevity.
In Australia, the middle-class income range is generally considered to be between 75% to 200% of the median income, which translates roughly to $48,000 to $130,000 annually for individuals, though figures vary by definition (personal vs. household) and year, with some placing the core middle at $90k-$140k household income, supporting a lifestyle of home ownership and family activities, but facing rising costs.
It's often cheaper to build a new home in Australia if you're a first-home buyer due to significant government grants (like stamp duty exemptions) and long-term savings from energy efficiency/fewer repairs, while buying an established home can be cheaper upfront, especially in established areas where land is expensive, though it comes with higher initial repair costs and less customisation. The final cost depends heavily on location (land value), house size, materials, and the quality of finishes, with building costs generally ranging from $1,500 to $4,000+ per square metre plus land.
The 50/30/20 rule in Australia is a simple budgeting guideline that suggests allocating 50% of your after-tax income to essential living costs (needs), 30% to lifestyle expenses (wants), and 20% to savings and debt repayment, though many Australians find they need to adjust it due to high living costs, sometimes shifting towards 60/20/20 or similar ratios.
3.5% down payment options
You can buy a $300,000 house with just a $10,500 down payment using an FHA loan. These loans are easier to qualify for than conventional loans, especially if your credit score is lower.
A strong credit score could help you secure a lower mortgage rate. You generally need a credit score of at least 620 to qualify for a conventional mortgage, though every lender is different. FHA loans, which are backed by the federal government, may be an option for individuals with credit scores as low as 500.