Dink! According to the Macquarie dictionary it describes the act of sharing a bicycle with another person to make a journey.
Dink can also stand for- Double income, no kids! For the the purpose of this blog I can demonstrate the benefit of the two meanings when it comes to getting ready for the journey of owning your own home.
When a couple is starting out in life, there is the socialising and general life and memory enrichment going on as they fall in love while getting to know each other. After a period of time permanency, like marriage and a family are being considered. This needs to be thoughtfully planned and everyone's current and possible future needs are to be established.
In most circumstances, a couple starting out are financially independent and can provide for themselves. It is when they decide to live together, then finances become blended( hence the term Dink). If the couple decides that they are considering a long term future and want to buy a home. Establishing a goal for deposit saving is the most urgent priority.
This is where the other meaning for Dink comes in. Share the ride, I mean make use of the double income to save a basic deposit. Set up a joint bank account specifically for the deposit and make a 3 month commitment to either deposit one partner's entire wage and live off the other one. Alternately, you can make a 50% contribution from each others income.
It is simple math and you will be blown away how quickly your deposit will grow. You need to work out your living expenses accurately to establish which is the most beneficial strategy. Don't worry if the deposit isn't in enough for the home you are after, I can help you with that by assessing your servicing capacity later. After 3 months, take a break from the lean lifestyle, but keep putting in a smaller regular amount regardless. What you have done is passed the first qualifying criteria for pretty much every home lender out there. When a few months have passed again, hit it hard for 3 months and you are way ahead within 9 months and ready to get properly assessed for home finance.
You will get into your home. This is not a matter of if, but when. The next stage is considering that starting a family has certain financial obligations as well as the potential to reduce income, while one partner takes time off work. Again follow the Dink principle. If you have a correctly setup loan, you can make extra repayments, so do the 3 month entire wage repayments to get ahead on your home loan. I suggest 3 months on then have a break for 3 months and on again. By doing this over the course of 2 years you have effectively gotten most likely at least 1 year of home repayments ahead. This will provide a buffer for the time when income becomes a bit less during the birth of the child and establishing a family friendly household. As life progresses, consider trying it again for just 3 months of year to keep ahead of the game. A rough estimate would indicate that you could own your home completely within 15 years. A certain method is required to achieve this and I will help you understand it if you want to know further.
As Freddie Mercury once said: "So get on your bike and ride"! If you are still unsure, just ask me and I can help.