We are having real trouble getting a house deposit together and was wondering if anyone out there could give me some tips.
Dh and I work incredibly hard, and always have done. He works full-time in IT, is on call 24/7, and often studies on top. In the 10 years we have been together I can count the sick days he has taken on one hand. I am doing a full time PhD, RA work, and am hoping to start teaching next year. We also have nearly four year old DS.
We are very frugal…don't' go out much, cook from scratch, shop at op shops/kmart etc. We have a budget and stick to it, and review it regularly. Yet still we never seem to be able to get the money for a house deposit. Every time we get some savings together something swallows them up.
For many years, after rent, bills and childcare we would only have 20 dollars a fortnight left over. So when someone got sick and needed to see a doctor...or it was someones birthday...or whatever we got into debt. I have had some quite serious medical problems over the past few years and spent five months in hospital last year. This had the double whammy of not being able to work and also spending loads on medical expenses. The car died. Lots of unexpected things happened. We got into a lot of debt. It was awful.
Late last year we took my mums kind offer to move in with her temporarily to get back on our feet. We now put away about $650 a fortnight into savings and have saved up quite a chunk for a deposit. My entire income goes into paying off debt, and we have nearly paid it off. But in the last few weeks we have found out that my medical condition has likely screwed my fertility and we will need IVF - so all our savings will be going to that.
We don't want a McMansion. Just somewhere to call our own, and some where we don't have to rent. We do need at least three bedrooms as Dh works from home a lot and has ALOT of computers/office equipment that he can't get rid of (needs them to do his job). Like, I am talking racks of servers. We also have a dog so an apartment would not be appropriate.
We looked into keystart/low deposit loans, but with such a small deposit realistically we won't be able to afford the repayments. It is so frustrating…I feel like we work so very hard and have nothing to show for it. I won't be finishing my PhD for another few years, though obviously things will improve when I hit full time employment.
So my question is…how did you get your first deposit? Do you have any tips? We literally cannot put any more away each fortnight as I have a lot of ongoing medical expenses and we are living very very frugally. It is not realistic for us to take on any more employment either, we are busy and stressed enough as it is. Is there anything else we can do to try and get on the housing ladder?
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18-06-2015 22:47 #1
Tips on getting your first home deposit?
19-06-2015 01:18 #2
19-06-2015 06:27 #3Senior Member
- Join Date
- Mar 2009
The way I would look at it is to work out how much you will have to pay on a mortgage when you've bought the house and be putting that amount into savings (minus any rent you're paying) because realistically you need to be able to put aside that much every month or you won't be able to afford to buy a house.
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19-06-2015 06:30 #4
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19-06-2015 06:37 #5
I'd look at your proposed mortgage repayments, rates, water and insurance, save that (given you are not paying rent this should be doable, otherwise you are not going to be able to afford the mortgage once you have it) and work your budget back from that.
The mortgage is the first and most non negotiable expense, everything else has to fit in what money is left IYKWIM?
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19-06-2015 06:57 #6
I heard one the other day about just getting a good paying job
Seriously though...if you're doing the best you can, the only other option is to try and fluke a job in an area where houses are cheaper or looking at a cheaper area.
For us, we're not willing to give up our life here including our friends and DH's job security, so it looks like we have to wait until I return to FT employment before we can upsize.
The other way people I know get ahead is by their family looking after their children so that they can work - we don't have this privilege either which means I've had to turn down heaps of paid work as I can't get casual childcare.
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19-06-2015 09:18 #7
I have no advice. DH got a scholarship to go to uni so didn't have to pay for anything uni related which enabled him to save through uni. My parents gave me the option of giving me my half of the deposit when DH and I bought, or waiting and helping us pay for the wedding. I chose the deposit. They also helped my brother with his deposit for his place.
I honestly don't know how people do it while renting without financial assistance, and I take my hat off to those that can.
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19-06-2015 10:53 #8
We sold everything we didn't need.
My husbands race car😁
And received some money someone passed away so I don't find it as lucky.
We moved to a not favourable area and we did it up a bit. (210k mortgage).
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19-06-2015 11:44 #9Senior Member
- Join Date
- Jul 2011
Could someone from your family go guarantor so you don't have to have a deposit?
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19-06-2015 12:02 #10
This might not be an opinion that you like and I promise I mean this in a caring way - maybe now is not the right time for you to buy?
If you're saving $650 a fortnight without paying rent, but having to tap into this for emergency expenses (which will always come up, including when you have a mortgage), then you need to consider if you could afford the repayments at the moment, even if you did have the deposit? I'm not sure what sort of price range you're looking at but when you factor in all the extra costs that come along with home ownership, along with putting a bit aside for those emergency expenses to allow you to still pay the mortgage if they did come up - it sounds like you'd be able to afford to pay a max of about $200 - $250 a week in repayments.
Houses are expensive - you have to factor in rates, insurance, maintenance (what if you needed a new roof for example?) and you don't want to get yourself into a precarious financial situation by absolutely stretching yourself with the repayments.
The other thing to consider when looking at if you can afford the repayments is the fact that interest rates are at an all time low and will likely go up in the life of your mortgage, so you need to be able to pay more than the minimum payment on these interest rates.
Sorry to be a Debbie Downer. Xx
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