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  1. #11
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    Quote Originally Posted by [Mod] Nomsie View Post
    How long has the house been in the market for? If its a long while, it's probably just a bluff to get more money.

    One of my biggest regrets in buying my first house is not saying no. I think I could have gotten it at least 12k cheaper, considering it had been listed for a good while.

    Counter their offer with 5 or so more than your original offer and then wait I see what they counter with. If its a decent drop they may be willing to go lower again. If they stay firm on the 40 I would walk away.
    House has been on the market since June - which is a long time for our market (average of 3 weeks). It's overpriced as is due to age, no pergola on entertaining area and location.

    We have the same regrets about our first house! The RE agent held a silent auction with another couple who didn't even have finance in the end and wasn't putting the figure to the owners each time like he should have. It was also the peak of the market in retrospect.

    We know that we definitely can't do the $40k. Another $10k at the most is about it with proviso of an extended settlement to try and cut down on bridging loan fees. ie. can go higher if saving in fees on our end.

    Our approval for a higher loan amount is currently in the system. Will know in a couple of days.

    On the other side of it all - we don't want to kick ourselves if it only goes $5k above what we have set our limit as!

  2. #12
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    I wouldn't go any higher than 30%. The cost of living is only ever going to increase, rates can really only stay steady or increase. I wouldn't be offering too much above what you can comfortably afford - other places will come up. We got our place for $30k under asking price - they kept telling us they had an offer $30k higher than ours but we didn't budge. In the end, we got the place - not sure what happened to that 'other offer'. There are a lot of games in real estate. Good luck.

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    Little Ted  (07-10-2014)

  4. #13
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    Quote Originally Posted by MummaOJ View Post
    I wouldn't go any higher than 30%. The cost of living is only ever going to increase, rates can really only stay steady or increase. I wouldn't be offering too much above what you can comfortably afford - other places will come up. We got our place for $30k under asking price - they kept telling us they had an offer $30k higher than ours but we didn't budge. In the end, we got the place - not sure what happened to that 'other offer'. There are a lot of games in real estate. Good luck.
    I usually love games...but not this one. Hate getting ripped off and I've scrimped and saved for years (except for DH's midlife crisis car). I just don't want the kids missing out on things for the sake of a house - there's more important things in life.

  5. #14
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    Quote Originally Posted by Little Ted View Post
    Thank you for your input. It's good to have some different perspectives and ideas to consider. I don't want to get caught short - Could I ask where the 80% comes from?

    We've been paying off our first home loan and then our second car. Tomorrow we will be in the positives by $1k.

    We are mindful of the rates - our other loan we paid off at 7%. Would try for the 5 year fixed at the moment. Planning on going back to work in a few years as we've just had our last bub. Not counting on government payments either due to what was proposed for the budget this year and may pass through government next year! Can afford repayments as is now and should have second income before rates go up if we fix it. What do you think?
    The 80% is something financial planner like to use to make sure you have some room for change in circumstances in your daily expenses.

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    Little Ted  (07-10-2014)

  7. #15
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    We bought a new house 6 months ago and are now paying just a hair under 40% of our combined salaries to the mortgage; we fixed for 2 years with Aussie because the rate was very attractive (5 year at the time was over 5%) and there's every likelihood we can re-fix at a similarly low rate for another 2-3 once that expires.

    The nearly 40% we pay is totally our maximum, and we have no vehicle finance or any other personal loans. We negotiated up to our maximum and said "final offer" and set a deadline for their acceptance of it, putting the pressure on worked.

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    Little Ted  (07-10-2014)

  9. #16
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    There is always another house. Call their bluff and walk away. I hate paying too much and learnt the lesson the hard way as it seems most of us did and payed too much for a previous house

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    Little Ted  (07-10-2014)

  11. #17
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    @GM01 what would happen if the rates go up to say 7%?

  12. #18
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    Quote Originally Posted by GM01 View Post
    We bought a new house 6 months ago and are now paying just a hair under 40% of our combined salaries to the mortgage; we fixed for 2 years with Aussie because the rate was very attractive (5 year at the time was over 5%) and there's every likelihood we can re-fix at a similarly low rate for another 2-3 once that expires.

    The nearly 40% we pay is totally our maximum, and we have no vehicle finance or any other personal loans. We negotiated up to our maximum and said "final offer" and set a deadline for their acceptance of it, putting the pressure on worked.
    Thank you. All we need is for no other buyers to come along for a while to give us more buying power...but then the owners are also thinking about renting it out if they don't get what they want.
    We have no other loans but will definitely need to replace one of our cars in about 5 years.

  13. #19
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    Quote Originally Posted by lilypily View Post
    There is always another house. Call their bluff and walk away. I hate paying too much and learnt the lesson the hard way as it seems most of us did and payed too much for a previous house
    We probably all bought our first homes around the same time!

  14. #20
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    Our mortgage repayments are around 15% of DHs income, I'm a sahm with 2 children. I'd definitely factor in a higher percentage of interest rates as you'll need to make sure you can afford them when they go back up.

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    Little Ted  (07-10-2014)


 

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