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Gardening / Landscaping

edals

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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.
 

EYY

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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
 

edals

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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 !
 

Sandman

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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
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.
 

Drawnnite

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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.
 

Batca

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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.
 

VS 5.0

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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.
 

VS 5.0

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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.


 

Acryna

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Wow, the difference is very nice. It looks way better than just black soil.
 

losh1971

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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
Your probably not looking to buy at this stage, since I think you're at uni now but I think the go is to buy a block and build. If you but a block you only pay stamp duty on the land as there is currently no SD on house builds. It is also easier to get your foot in the door as you only need a 20% deposit on land not an entire house and land. I've built twice, once as an owner builder and I am currently in the process of building a new larger brick home. Melb prices these days will be close to a $1mil, so I think land is the go.
 
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