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  1. #1
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    No help on the income side of things. Sorry.

    Things to think about.

    Deposit - you will get your $7000 government grant (1st home buyers available for 1 of you only). If you build a new house you can usually get another government grant (at the moment it's $10,000 till april) but the one before that was $21000 to new owners. So that usually available often. Also some builders match that deposit so instead of only having $10,000 you have $20,000. Iykwim?

    You don't have to pay stamp duty which will save you a few thousand dollars.

    Solicitor fees are anywhere between $500 to $1500 unless it's really full on.

    With the government grants and perhaps some of your own savings you can manage to get there fairly quickly depending on how much you save.

    A friend of mine got the $21000 from the government and only had to pay an extra $4000 to have a $400,000 house built. They are on a similar wage to you. However they do find repayments really hard.

    Depending on the bank they require 5%, 10%, 20% deposits. To avoid mortgage insurance you need to have 20%.

    The cheapest loans are you interest only, which mean you never pay off your house. You bank on the fact that your house will increase in value.

    Your dh will need to have been in his current job for a minimum of 6 months or they won't bother taking you on (this happened to us once, regardless of our financial situation)

    Save as much as you can, even if it's $10 (every bit helps) put it into a net bank saver or something similar as they earn you interest on interest and the interest rate on them can be quite high.

    Just a heads up. Owning a home is actually really expensive. For a $300,000 home it's just over $500 a week in repayments (variable and changes a little between banks) you also have rates and water which can be anywhere from $1500-$2500 depending on location, property etc. Then you have house insurance which is a must or banks won't lend to you, that goes for life and income insurance aswell.

    Hope this has been some help.

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  3. #2
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    Don't count on the FHOG if it's going to be sometime before you get into the market. It's currently only guaranteed until June 2013. It may go up or get cut completely, so please don't rely on it.

    Everything else said above is correct. Each bank is different, low deposit loans are becoming more common again these days.

    If you aren't planning on buying for a while, it may be worthwhile looking into the First Home Savings Accounts which are a government initiative.

    Otherwise, open an online account (higher interest) and bank away even $10 as pp said. It all adds up, especially over time.

    I would advise calling a broker (Mortgage Choice don't charge) and having a chat with them, even now, as they should have some great advice for you and a better indication of where you stand re income etc.


    Mummy & Daddy - expanding our family! Our little man born April 2011 and now expecting another munchkin in August 2012! Loving it!!!!!

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    Definitely think about all the 'other' costs that come after the mortgage. Rates, water, electricity!
    Our mortgage is around $400,000 and we pay $630 a week. Rates, water and electricity are roughly $300 a month!

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    Our inlaws went guarantor for our deposit so we didn't need a deposit or mortgage insurance.
    DH earned 50K and I was on approx 25K and the bank lent us 280,000.

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    No help on the deposit as ours was gifted but definately agree with preparing for other costs. Insurance, rates, legals, removalists etc. I think all up all those other bills came to arpund $6k. We hadn't really planned on that side of things and it meant that money we were gifted for deposit was reduced which also meant we needed mortgage insurance which was I think another $4. We were given $30k and then eith grantsit ended up just being enough for everything we needed.

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    did you see the story about renting vs home ownership

    if you not already in the market these days you might us well keep renting is you want any type of lifestyle or you may as well pay your whole wage to the bank and power companies

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    No help on the deposit as ours was gifted but definately agree with preparing for other costs. Insurance, rates, legals, removalists etc. I think all up all those other bills came to arpund $6k. We hadn't really planned on that side of things and it meant that money we were gifted for deposit was reduced which also meant we needed mortgage insurance which was I think another $4. We were given $30k and then eith grantsit ended up just being enough for everything we needed.

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    The best way to budget and save is to calculate what your mortgage, rates, water etc would be per week and then start 'paying' it each week
    i.e. $300,000 mortgage is approx $450 per week at current rate, water charge and rates is usually $2k per year but depends where you live, so say $50 per week to be safe. So at a minimum for those amounts it would be $500 per week.
    Pay your $300 pw rent and then save the remaining $200 pw religiously, so that you get used to have an outgoing of $500 pw, just like it would be if you went and got a $300k mortgage.

    At $200 pw you will save $10,400 per year. Some banks will allow you to put down only 5% deposit, but then will require you to pay mortgage insurance (mine was $4,000 lump sum on first property, but was only $900 on this one as we had about 18% deposit). The only ways to avoid mortgage insurance will be to have a guarantor on the property (parent or someone with enough equity to do this) or to pay at least 20% deposit, which is pretty tough to do if you're at the start of your savings journey.

    As mentioned above solicitor or 'settlement' fees are anywhere from $500 - $1500 depending on what value the property is, but at the lower end you can assume $1000.

    So, say you are looking at a $315,000 home. You will need:
    Approx $15,000 minimum deposit, $2-4,000 mortgage insurance or guarantor plus up to $1,000 settlement fees. Approximately $20,000 all up. If you can save $200 pw, 2 years.

    That doesn't take into consideration first home buyers, and I wouldn't rely on it. If you do get $7,000 from the government you could use it for some new furniture and to start the rainy day savings fund.

    Good luck!

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    Also to add on to the bills that you will have to pay is upkeep and maintenance.
    You won't have a landlord you can call if something goes wrong-you need to be able to afford these things too! ( as an example we had our aircon die in the middle of a week long heat wave and had to get a new one >$1000, then a few days later out hot water service died and we had to
    Find money for that too)


    Sent from my iPhone using Bub Hub-that's why it's full of bad grammar and spelling mistakes!

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    Yes good call kezanazz! I remember first time something major happened when I was a home owner, the thought "oh my god why did I buy?" goes through your head!


 

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