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Discussion in 'The Pub' started by Rajesh Koothrappali, Oct 27, 2015.
The auto leccies ? That's its second home anyway.
Buying a house is a crappy experience to go through unless you've just won Powerball and walk in with a suitcase of cash to buy a place. All banks and real estate agents seem to do is judge and look down on you.
Congrats Jecs, hold onto that home owner pie as long as you can.
That's awesome jecs. Motivates me to spend less on cars and save more
Looks like great value for money too!
Well done mate . Just think in 25 - 30 years it will be all yours ha ha . My son just bought his house after 8 months of looking and stressing and moves in this weekend . Its amazing the speed at which the prices have risen in those 8 months . He was looking at a few properties in Ferntree gully to start with and 6 months later that suburb is out of his price range . Again congrats
Prices are getting scary for any area half desirable. Even buying a shack anywhere near melbourne's impossible.
Overseas buyers will pay $1 million for a tiny piece of land and a rooted house just to knock it down and build their multi level mansions.
It's looking like we'll need to be looking at houses further out or apartments/units closer to the city. Not much half decent out there for under 500k within a 60-70km radius of the city
TBH Jecs has been very smart - it's cash positive so the purchase price really doesn't mean ****. It's been pretty universally accepted that interest rates are far more likely to head up rather than down however after a year or 2 even a significant rise (unlikely to happen most would think but possible) is more than going to be covered by rental growth.
I might add to this too. The mrs and I have our deposit, and pre approved from the bank. So we went and looked at some houses suited to our price range. And the properties that were the "good" ones needed another 30k spent to get them up to scratch again, such as fencing, trees, kitchens, roofing and bathrooms all being problems at different properties, they all needed some sort of work that would go over our budget, So we thought we would go have a look at the sales office in the new estate to see if we could build for the same price. 40mins later we decided and put a deposit down on a block.
Too many pros for building, being new etc and not have to worry about it for a while, first building grant of 20k. Amd all for the same price of a 20 year old property.
Its a tiny block in a new estate being developed still. Can't even see what we bought since its still being cleared etc, but we got the last lot in that stage. Investors are grabbing these fast !
Big enough though to build a 3 bedroom basic home with in the land requirements, Thats all we need since its just us and our daughter.
Just organised the building and contracts, just waiting on the final approval for finance. Its definitely been a interesting few weeks with planning with changes and extras added to make it our home, Cannot wait for it to start. We all have to start somewhere.
Wait wait, being Generation Y i was suppose to buy a 800,000$ home and then figure out how to pay it off right ?
And this is the biggest problem, too many people which unfortunately I am a part of that generation, want it now and don't want to be patient and over time earn it.
What I really cannot wait to see is, when interest rates do eventually go back up and see how many people get absolutely bent over by it by not looking ahead and preparing for the worst. I know in my scenario I always keyed in a rate of 8-12% interest when looking at loans and similar. I was lucky with work and managed to have a very nice house deposit, this is after buying the toys/tools/bikes and setting out a few other goals, yet always wanted to be reasonable with the value of a house while also making plans for a worst case scenario (ie being out of work for an extended period of time like now).
But as you have said, it is better to start somewhere and go from there. Sure its nice to have the latest and greatest, but in my mind, it is better to have something small that you can build from then to go too big too quick and cause no end of headaches. So congrats Edals in that regard
Our first place was a 2 bed + sleepout 50's fibro shack on 354m2.
And when I say 2 bed, I really mean one as we used one of them as the dining room coz it didn't have one, just a small area in the kitchen for a small table.
No a/c and a shitty built in gas heater.
Freezing in winter and a sweat box in summer.
But it was ours and got us on the property ladder.
20 years later, and another place in between, we now have (hopefully) our forever place.
It can be a hard road but well worth it imho. It also makes us appreciate what we have now so much more.
And Drawn, totally agree with working out proposed repayments on a much higher amount than current interest rates. It might mean that you can't necessarily purchase the home of your dreams today, but it does mean that you are more likely to keep your home when (i.e. not if) interest rates increase.
Excellent point on the interest rates. This is why I was firm with locking in at current rates for 3 years. I absolutely hate the unknown feeling and having to worry about if rates were to rise.
We could survive with up to around a 8 % interest rate, but much more than that I would hate to think of the struggle. But you find ways to pay this bills.
My parents when they built, the Interest rate was around 13%. Plenty of toasties and going with out alot of things for a fair while until they finally went back down. They got through it with 3 kids on a single income.
What do you guys consider a decent house deposit? I know of friends that have had only 20-30k between them as a couple and have purchased properties for 350k-380k which surprised me a bit.
Anybody here use an offset account? Currently trying to figure out the best approach. I understand it's a bit personal so I understand if you want to keep it to yourselves
You need at least 15% for a bank/broker to take you seriously.
We tried the 5% approch before, and they want you to have at least 80k a year income and that was with my mother being a guarantor. It all depends on your circumstances.
We got away with only 14% due to being a smaller loan. And the bank also took our rental history as savings also.
But, also take into account, if you are renting, be prepared to be paying a mortgage and rent at the same time if you don't have the option to stay anywhere and it might take months for a lease to be taken over. I have enough to pay the mortgage for a year to ensure I can cover both if not everthing goes to plan. If it does, bonus !
Where are they finding houses at that sorta price, nothing remotely close out this way for that price unless you wanna live in the crappy-er bit of Dandy. Eyy knows but I'm in a similar boat so any insight to this is always helpful folks so cheers.
I got told, don't bother til you have a 20% deposit.
Purely because it saved on a few insurances and extra fees.
At the same time don't forget to have calculated in the conveyancing and legal fees along with any other extra costs that can arise as this will bring up the expected amount to be a bit higher, while it is good to have another nice chunk there as a fallback if anything were to go wrong.
obviously it may not be practical for everyone that scenario but it is a good practice to try to achieve.
20% is nice though not essential. It opens up more lender options and avoids LMI - a good broker goes a long way getting the loan. Employment can be a factor some self employed guys can struggle to satisfy proof of income. We experienced this first hand selling our place the highest offer guys we had their finance fell through for that reason.
Fees are a killer, we are settling our place Monday bought elsewhere and moving -agent fees to sell, conveyancing, termite inspections, building reports, repairs to a few bits and pieces to sell etc etc and the worst of all stamp duty is running us to nearly 50k. That is all gone before the deposit.
As a couple of other guys have said, this will be my third home where we intend to be for 20 years. I have lived in a couple of dives to reach equity to where we want to go. Want decent school zones for the kids.
Save as much as you can and get into the market if you want to -worst thing to do is do nothing IMO.
For the uninitiated, LMI is Lenders Mortgage Insurance which the financier requires the borrower to pay if they have an LVR (Loan to Valuation Ratio) greater than 80%. LMI covers the financier, not the borrower, in the instance where everything goes tits up and the financier sells your property for less than the outstanding debt.
Depending on the financier's policies and your LVR, you may be able to include the LMI premium in the loan amount. If not, you will have to cover that as well.
Stamp Duty is the other killer as Batca mentioned. Each state varies to some degree so check your local jurisdiction for applicable rates. Again, you may be able to have it included in the loan amount dependent on the financier's policies and LVR.
Our last buy/sell in 2015 cost us ~$70k in stamp duty and agent selling fees alone plus the other add ons that Batca mentioned. It is an expensive process to change homes.
Did some planting this morning.
This garden bed is outside our bedroom. South facing so fairly sheltered from the sun....gets a little in the morning.
When we bought the place, there was a small tree planted there which is a member of the ficus family. Ficus can have very invasive root systems and are no good near buildings so we dug it out, planted it in a pot and have that sitting in the dining room.
Removed the remaining bark mulch, turned the soil with a pitchfork, added a bag of soil improver & turned that through then applied a liberal dose of soil wetter.
Planted, mulched and gave them a good drink.
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