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  1. #31
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    Quote Originally Posted by shelle65 View Post
    Yeah but overall it's comparable to what you would pay in rent, but some of the money is invested in an asset, rather than the landlord's asset.

    Hehe I'm one of the suckers who had a tiny deposit and could just afford the minimum repayments, but perhaps my situation is different as I have had a couple of significant pay bonuses and have paid an extra $10k off.

    I haven't done the calculations as to whether I should have held off two years and saved the difference between rent and mortgage as I know I probably would have been better off if I had done that and been able to buy something way better now... but in that 2 years I have had my very own house that DD and I can do whatever we like with and that has been priceless!
    No but I reckon you made the right decision. You have paid off an extra $10k in the first 2 years and that's huge. You have a good career with good, stable employment.

    Until now, a mortgage has not been comparable to rent for me at all. I lived with ex for 5 years and didn't pay rent, and before that lived with another ex and rent was much less and shared between us. Now though, the amount of rent I'm paying I should be paying off a loan! Thge problem is, where a little house around here could be picked up for $275k 5 years ago, there's now nothing below $400. I would want capital gain and I'm not sure the market can get too much higher at this point (?). I don't like units as investments either). The lower end of the market is also the toughest to get into, depends where you live I guess, but I could only afford a property in an area where there's no work in my field :/

    Also, there's lots of other fees associated with home ownership, but not rent: rates, body corporate (if applicable), landlords insurance, other insurances, repairs and maintenance, management fees.

    I almost bought a property with my ex years back (second property for ex) - we had the deposit down but I pulled out at the last minute. I hated my job back then and didn't want to be tied to it forever. The property is now worth double!

    PS. If I had have had a mortgage when I had DS I would have had to return to work much sooner... Espec if I had only been making the minimum repayments. As it is I had almost 2 years off after he was born. Yes there's always the option to sell if you need to, but selling a property within a short period after buying it (5 yrs or so if memory serves) you almost always end up worse off financially after costs etc. property is a long-term commient for investment purposes. There's lots to consider.
    Last edited by Ellewood; 24-10-2012 at 11:55.

  2. #32
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    Default First home, deposit? How much do you REALLY need?

    Just an update for the OP. The Campbell Newman state govt has removed the FHOG as of oct this year.

    We just scraped in with receiving the FHOG with the house we bought. 20% deposit and our repayments are 950/fn on a 320 000 loan.

  3. #33
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    Default First home, deposit? How much do you REALLY need?

    20% to save you paying mortgage insurance. Most banks like 20% specially these days. But some banks will allow 10% and very few allow 5% but you need to show a good sign of savings also plus many other requirements.

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    Default First home, deposit? How much do you REALLY need?

    My experience. 2010 bought a house for $365000 had $57500 deposit including 1st home buyer grant. Stamp duty was exempt as first home buyer (Qld) legal fees $800. No mortgage insurance.

    2nd house. April 2012. Bought $250000 deposit $69000 this just covered 20% avoiding mortgage insurance, stamp duty and legal fees.

    You can do it for less but mortgage insurance costs on anything under 20% deposit and can be expensive.

    I suggest talking to a mortgage broker, finance man asap

  5. #35
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    Default Re: First home, deposit? How much do you REALLY need?

    Quote Originally Posted by Benji View Post
    That's really the only thing that stood out for me in your post. I think if it's going to cause financial stress, it might be better to wait until you're in a better position, when kids are in school and you're two income family if need be.

    I do believe it's ok to not have 20% deposit, but if the repayments you can just scrape by I don't think it's a good idea. Imagine if things changed and you had to give up your house
    Ok.... But the average family in Australia couldn't afford 650 per week either... Yet they do it. We would rather be paying 450 repayments than 350 rent... Thats what I'm getting at.

    We won't be looking at buying a house for a couple of years yet, but I just wanted an idea of how much we should be saving. At the moment we're putting away 200 per week (and have been saving every single week for a year now, some times more, sometimes less) ... Surely that will get us a house eventually!

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    Default Re: First home, deposit? How much do you REALLY need?

    So what I'm taking out of everyone's posts is around 60k is what we'll need. Bummer. It's surprising anyone owns a house.

    Combined we earn 60k a year... I thought we were your average aussie family, yet it seems almost impossible that we will ever own a home. We are both in our mid 30s and thought it was about time we look into it.

    We also have NO debt... Not a single dollar... I thought we were doing pretty good.

  7. #37
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    Default First home, deposit? How much do you REALLY need?

    Quote Originally Posted by Happy2be3 View Post
    So what I'm taking out of everyone's posts is around 60k is what we'll need. Bummer. It's surprising anyone owns a house.

    Combined we earn 60k a year... I thought we were your average aussie family, yet it seems almost impossible that we will ever own a home. We are both in our mid 30s and thought it was about time we look into it.

    We also have NO debt... Not a single dollar... I thought we were doing pretty good.
    You could own one sooner of you choose a house that's very affordable. Ie we bought a house for $250000 ok needs work but it's only really cosmetic stuff. BUT our repayments are $292 a week which is cheaper then rent. We did have 20% deposit but even do with a 10% deposit ($25000) on a $250000 house you are looking at a mortgage of $225000 which a month is $1335.00 in repayments a month with a variable loan of 5.9% which smaller banks are offering.

    The fact you can easily show you have managed to save that much over a full year on top of rent and cost of living shows your capable of making repayments. But be realistic and look for a house within your means. Just think ok it might be solid and good but if you can pay it off real fast you can then sell it use that deposit and any capital gains to then buy the home you really want (advice not to do before 2 full years of ownership)

    Before you feel you can't ever do it please talk to someone. You will be surprised

  8. #38
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    Quote Originally Posted by Happy2be3 View Post
    Ok.... But the average family in Australia couldn't afford 650 per week either... Yet they do it. We would rather be paying 450 repayments than 350 rent... Thats what I'm getting at.
    I was doing some calculators online this morning and I think the average was about $560 per week repayments for *I think* about a $330,000 property. So not even $100 per week more than I pay in rent. The thing I worry about is things like leaving room for rate increases, if one loses a job, maintenance, insurances, etc. But If you can pay $350 rent + save $200 and have enough money to live and for the added expenses of having a mortgage well there you go

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    Some others may know the answer to this, but I was pretty certain that a lot of places will take into account the amount of rent you pay.

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    Default Re: First home, deposit? How much do you REALLY need?

    I'm gonna throw another option in.

    Not sure if it of done in all states but there is an option for low income earners of the government 60/40 deal. Not sure on the details just that the government allows you somehow to borrow 60% and they do the remaining 40. Google keystart 60/40.

    Sent from my magical black talky thingy using BubHub


 
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