I'm daunted right now.
Looking into buying a home
What deposit did you have for what price?
What was the process for you?
Any reccomendations or tips or ideas
Looking at buying for under 300k which is a stretch to find but I cant see how we would possibly afford more. We only have 18k goal for deposit? Is that too little?
Would love to hear from anyone!
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18-05-2013 08:28 #1Junior Member
- Join Date
- May 2013
Buying first home soon!!
18-05-2013 09:03 #2
10% deposit would be better - not sure what state you are in but in NSW they have dropped the first home owners grant unless you buy a new house - but you still will be entitled to stamp duty concessions
Have you seen a broker? I would get pre approval and budget for all your costs first to work out what you can afford - don't forget you will have to pay mortgage insurance if you borrow more than 80%
Once you have a budget , start looking at homes for sale in the areas you like and get friendly with the agents! Try and get on all their mailing lists and get all the recent sales info off them , attend all open houses to get familiar with prices and current trends for your area
Find a good solicitor/conveyancer as you will need one to look over the contracts - they should have pest and building companies they recommend
18-05-2013 09:37 #3
For my first home (an apartment) I only had 3% deposit, but that was a little while ago and I don't think many banks do 97% finance now.
Anything above 80% finance will require you to pay mortgage insurance, and the mortgage insurance amount will increase the closer you get to 100%.
$18k for a $300k property would be 6% deposit / 94% finance, if all of the $18k went towards the property value. You have to keep in mind there will be settlement / conveyancer fees, mortgage registration, title transfer etc and if some of your deposit is going to be needed towards that then you may have less towards the actual home.
Are you eligible for first home buyers grant?
If there are agents that specialise in a particular area I would contact them, tell them your budget and ask to be kept updated on new homes that are listed. If you get a 'pre-approval' letter from your bank for say, $280k finance, this will let the agent/s know you're serious.
As pp said, see a mortgage broker about finding a good mortgage and good interest rate.
18-05-2013 10:34 #4Junior Member
- Join Date
- May 2013
Thank you for the insight.
I havn't spoken to anyone yet we have just been saving and I've been gathering bits of information here and there. So we are preparing, but not seriously tackling it just yet.
This is very helpful, I can tweak our budget, tighten a few areas and end up with around 34k rather than 18k over a little more time. This would mean we are going to have to be more careful with money but I am thinking it would be good practice for mortgage repayments/insurance etc in our future budget anyway.
I only want to borrow 300k max even though according to the calculators, based on what I would expect to be earning alongside my partners pay when I return to work we would be eligable for up to 150k more (at this point, I understand this is variable) I want to be sure we can comfortably afford it and take into account if one of us over the many years were to fall out of work/become sick etc etc for a short time we could still cover the payments on the one wage short term. It is hard to find something we actually like for that price in the area we are looking in.
hmm, yes a lot to think about. Thanks this is very good advice so far.
By SimplyMum in forum Family FinancesReplies: 13Last Post: 05-09-2012, 14:37
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