ADVERTISEMENT

+ Reply to Thread
Page 2 of 3 FirstFirst 123 LastLast
Results 11 to 20 of 25
  1. #11
    Join Date
    Jul 2008
    Posts
    1,254
    Thanks
    17
    Thanked
    268
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    To be honest, if you are finding your rent around what you can afford, I would avoid buying until your income rises. Rates, house maintenance, insurance can become very expensive.

    Also, on a $300000 mortgage, it is around $500pw however that is based on interest rates now. I think you need to factor in interest rates rising and whether you can afford the increased rates.

    If you think it is all to much, maybe start saving for a deposit in a high interest account until your wage increases.

  2. #12
    Join Date
    Jan 2012
    Posts
    41
    Thanks
    0
    Thanked
    3
    Reviews
    0
    also look at a deposit guarantee ... Deposit Power can issue u a deposit guarantee (10% of the purchase price) for a small fee (there is a calculator on the website which will tell you how much). This guarantee just covers the deposit until settlement. You then pay the full purchase price (100%) in your homeloan.

  3. #13
    Join Date
    Jan 2012
    Posts
    871
    Thanks
    109
    Thanked
    465
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    It's a nice goal to have for the future

    There are so many costs involved not just paying a mortgage every week. A prime example yesterday our hot water service went to hot water service heaven and today our air conditioner has decided to break down on us in this awesome heat.

    Thankfully we have savings for things like this. Rates are also another added cost too!

    Saving for the deposit is like saving for anything, cut down on food, spending money, utilities usage etc.

    We have a 220k loan and our minimum is $340 per week! Maybe a good way to start is put away $50-$100 each week, what you would be paying If you had a home loan (on top of your rent) that way you get used to paying out that amount of money each week and can save for your deposit!

  4. #14
    Join Date
    Jun 2011
    Posts
    302
    Thanks
    93
    Thanked
    47
    Reviews
    0
    Only advice I can give you is that when DH and I were looking at buying our bank manager suggested having 20% deposit, be debt free, and that they home loan shouldn't be more than 33% of your wages.

  5. #15
    Join Date
    Jul 2009
    Posts
    1,913
    Thanks
    482
    Thanked
    552
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Oh, I do have another piece of advice... Just because the bank says you CAN borrow X amount doesn't mean you SHOULD borrow X amount!!!


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

  6. The Following User Says Thank You to kezanazz For This Useful Post:

    share a book  (29-01-2012)

  7. #16
    Join Date
    Mar 2008
    Posts
    3,532
    Thanks
    1,313
    Thanked
    1,390
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    We are under a lot of mortgage stress although it is slowly getting easier.

    But, if I had my time again, I would have been very thorough in working out *exactly* what our home ownership costs would be (ie, rates +++++) and then done a trial living on the income remaining.

    I think this would have given us a much better idea than the theoretical budget I put together.

  8. #17
    Join Date
    Dec 2010
    Posts
    8,790
    Thanks
    3,395
    Thanked
    3,082
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Quote Originally Posted by kezanazz View Post
    Oh, I do have another piece of advice... Just because the bank says you CAN borrow X amount doesn't mean you SHOULD borrow X amount!!!


    Sent from my iPhone using Bub Hub-that's why it's full of bad grammar and spelling mistakes!
    Very good advice. My brother and his gf (he's nearly 23, she's nearly 21) are so far in debt they have a very poor lifestyle. Both bought a car beyond what they could afford, both bought new phones on a contract beyond what they could afford, both bought a computer beyond what they could afford, they booked a holiday they cannot afford so basicallyhis entire pay goes on the cars and credit card, her entire pay goes on the phones, rent, bill installments, and they eat rice, pasta and Mi Goreng noodles. My brother's car he paid 23k for in September is off the road because he can't afford to fix it. They have a holiday next month that's already on the credit card (booked flights, accommodation, theme park tickets) so for christmas they asked for transport cards and gift vouchers to buy bread and noodles while they are away. They both took out a 7 year loan for the cars and will not be finished paying for the computers or this holiday until 2017. So yes, just because they approve it, doesn't mean you should take it.

  9. #18
    Join Date
    Jun 2011
    Posts
    302
    Thanks
    93
    Thanked
    47
    Reviews
    0
    Quote Originally Posted by kezanazz View Post
    Oh, I do have another piece of advice... Just because the bank says you CAN borrow X amount doesn't mean you SHOULD borrow X amount!!!


    Sent from my iPhone using Bub Hub-that's why it's full of bad grammar and spelling mistakes!
    Very good advice. My SIL and BIL should never have been given a home loan as they were so far in debt anyway and trying for a baby, but the bank didn't care, "which bank" , I'm not going to name them.

  10. #19
    Join Date
    Feb 2010
    Posts
    5
    Thanks
    0
    Thanked
    0
    Reviews
    0
    I've noticed a few guys on here commenting that they struggle to save or even create a budget to follow quite often people have no idea where their actual money goes and live pay to pay...

    I used to live pay to pay and blow my money on all sorts of **** with no thoughts of the future and investments a few years ago that changed and it was done by using a strict budget and accouting for every dollar I spend.

    This helped me create savings patterns and get into property while still enjoying my hobby with cars etc and led to me enjoying a more enjoyable life...


    Any ways I figured other ppl might be interested in changing and a good place to start is budget and accountability for money spent

    In my travels I found this budget which has formulas in it already and covers most expenses you may encounter. So thought would share with you guys.

    http://www.understandingmoney.gov.au...getplanner.xls

    Of course a spreadsheet won't help you if your not willing to change yourself, the way I see it if you can stick to a budget for 8 weeks you are on your way and shouldn't slip back into old habits. After 6 months it will become second nature and you won't need the spread sheet anymore.
    On the point of doing it for a year and getting stuffed by first rego if you add absolutely all your bills up over the year then divide by 52 then add 10% you should find that after 2 weeks of putting specific money aside for bills you have enough to cover a rego etc if not use some of the money you have saved to top it up after a few weeks you will be on track and be fine.


    Some tips I use:
    *Create ad many bank accounts as needed ie. Offset, mortgage account (always leave a buffer of 2 months mortgage in here incase of emergency) bills account, pocket money account, any other savings accounts you need use the free online accounts where u can to save on fees
    *Put all money into an offset account against home loans then divide it from there via auto transfers every week.
    *Write down every bill you get throughout a calendar year then add them all up and add 10% this includes rego insurance car services, mobile, phone, Internet, racq, public transport, fuel, electricity, rates, water, private health, union fees, anything you can think of. When you have this amount divide by 52 and have that auto transfer from your offset account each week automatically.
    *If you have mortgages or personal loans or both have those amounts auto transfer to your mortgage/loan account keep a 8 week buffer of payments in that account for emergency then set auto transfer from there to your loan
    *Set up an auto payment to an account that can access via a ATM card and make it a nominal amount to cover personal expenses ie. Pub lunches, DVDs, general wasteful **** make this say $50 a week what ever u don't spend let it accumulate to buy stuff u want.
    *This should leave you with a residule amount in your offset/original account use this one for groceries , special events like dinner out, presents basically anything not covered by bills, then any money left over will accumulate in this account and offset your homeloan or accrue interest for you. Don't ever spend anymore then you need to from this account.
    *Consolidate and cut down any bills you can, if old card use club rego dropping rego and insurance cost , if you haveobile broadband, home Internet, mobile phone data cut one or 2 out can save hundreds,
    *cut unesesary things like foxtel etc every bit helps when you add it over a year.

    The best motivator is watching what you save grow you will find yourself not wanting to spend because it will lower the saving amount when you get to this point you know you have changed your habits long term. When you do save 20 or 30k don't spend it all only say 10-15k always leave yourself with. Savings it will help your home loan if offset or help you if you get sick etc.

    When all that is done contact your super fund and check what insurance you have,make sure if you get sick or something happens you still have money coming in the savings will only last so long.

    One other thing any pay rises or bonus etc put this straight into the offset and don't even think about it just regard it as extra savings, all you guys living pay to pay think back 5-10yrs what you were earning compared to now you lived pay to pay back then so why are you still doing it, your pay has increased but so has your spending so any payrise goes to saving and do not up your spending because of it.

    And the biggest tip is don't sell yourself short, if your not getting the money you want at work apply for new higher paying jobs, the quickest and easiest way to save it to increase your wage set yourself an aim like in 5 yrs I want to be earning $xxxxxx and work your way towards it.

  11. #20
    Join Date
    Apr 2006
    Posts
    6,211
    Thanks
    387
    Thanked
    594
    Reviews
    3
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    No help on the deposit side of things cause my parents went guarentor on our loan so we got to borrow 100%+ of the mortgage (this was 10 years ago).

    The bank were willing to lend us $300,000 and yet we only borrowed $247,000 and we seriously struggled. My wages dropped a bit and suddenly we were running out of money each month. It was only that way for a year or so, but that year was stressful and our house had not gone up in value so we still owed about what our house was worth - not a nice place to be. My income gradually improved after that and we paid off our car loans and suddenly things were a lot easier.

    We had some savings when we moved into our house but we were seriously shocked at how quickly they disappeared. We knew we had to spend about $3000 re-roofing the house and about $1000 restumping one room. That was what we expected to spend money on. We didn't factor in setting up phone/gas/electricity, replacing the hot water service that died 1 week after we moved in (at $1000!), restumping costing $9000 instead of $1000 (most of the house needed to be done, not just one room), furniture & various incidental things you need for a house (we were newly married and hadn't lived in our own place at that stage). The first quote for reroofing we got was $9000 too, instead of the predicted $3000 ... I cried all night after that! We simply did not have the money and yet the roof was leaking (which we didn't know from the pre-purchase inspection - but the first time it rained after we moved in the roof leaked!). Thankfully we got another quote and modified what we needed done to the roof & it came in at $3000.

    Anyway, my point is that to own your own home you shouldn't spend all your money and end up with no savings and no capacity to save. Make sure you can make the repayments (ideally be able to pay 2% more than the current interest rate), save some money for a rainy day (at least $2000 to cover emergencies) and then factor in what you want for your lifestyle as well. Don't assume you'll be happy to go without holidays, movies, dinners out for 5 years in order to get your own house - that's not going to be fun.


 

Similar Threads

  1. Home made Playdoh question
    By em's mum in forum Recipes & Lunchbox Ideas
    Replies: 8
    Last Post: 05-08-2012, 15:12
  2. buying and selling property - a home loan question
    By ziara in forum Family Finances
    Replies: 5
    Last Post: 26-05-2012, 15:50
  3. Question for all u home owners out there.
    By littlerayofsunshine in forum General Chat
    Replies: 15
    Last Post: 15-01-2012, 13:46

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

ADVERTISEMENT

ADVERTISEMENT

FEATURED SUPPORTER
Baby MonitorsLooking to buy a baby monitor? :: Read viewer reviews of baby monitors BEFORE you buy :: Buy at a local or online Baby ...
FORUMS - chatting now ...
Bed time 9yr old and (nearly) 7yr oldGeneral Parenting Tips, Advice & Chat
Hello FreshGeneral Chat
Implantation Bleeding? Please help!Conception & Fertility General Chat
Mesntri AdentitisGeneral Parenting Tips, Advice & Chat
Keli LaneGeneral Chat
Optimistic OctoberConception & Fertility General Chat
REVIEWS
"Made bed time less anxious"
by Meld85
My Little Heart Whisbear - the Humming Bear reviews ›
"Wonderful natural Aussie made product!"
by Mrstwr
Baby U Goat Milk Moisturiser reviews ›
"Replaced good quality with cheap tight nappies"
by Kris
Coles Comfy Bots Nappies reviews ›

ADVERTISEMENT