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We may be about to buy our first house
42 replies to this topic
Posted 07 February 2017 - 02:31 PM
So we have been having problems with the annoying neighbours upstairs who may or may not be smoking drunks. But also having loud visitors and pouring water off their balcony and onto ours.
So we complained and they counter complained (smells and the cats we sneaked in) so the agent was going to come round and inspect and we were wondering how long we wanted to put up with renting.
So, it may be time to buy our first house
It will mean moving out of Sydney, which we will miss as we like the stuff that's on and the nice restaurants. But it means DS can have a yard to play in, a room of his own and we will be a lot less cramped in this tiny two bedroom flat.
And it will be ours!
It's exciting, we need to get the loan approved but we do have a bit of debt already. DH parents have offered to give us money for the deposit.
Posted 07 February 2017 - 02:50 PM
That's a nice house, but rip up the tiles outside(hot!) and stick some turf down for kiddo to feel grass under his toes.
I'm jealous of the big garage. Wish ours was a double. SiL has kids parties in hers, so easy!
Posted 07 February 2017 - 02:54 PM
That's the plan. We were talking about making the garage into a home office for DH. And sewing room in that little room upstairs with pull our bed and spare room for guests.
It'll be a high risk loan though. We would need $50,000 to get it or another house and we would be borrowing more than 80%.
We would rather paying for our own house than someone else's though
Posted 07 February 2017 - 03:04 PM
Hope you get the loan. Really nice place, lots of room!
Posted 07 February 2017 - 03:26 PM
Don't think that just because you're moving out of sydney there won't be any nice restaurants. there can be some great gems locally! We don't miss any of the nice stuff outside of sydney in fact we make a nice day trip out of it. sometimes we even spend the night or two in the city and it's like a mini holiday and our DD loves it, it's a bit of an adventure!
I hope you enjoy it though!
Posted 07 February 2017 - 03:33 PM
I think that's a great buy at the price with potential for capital growth. Wyong is on the train line, looks like you're not far from the station, so if you want to go to Sydney occasionally for restaurants (albeit probably lunch) it's only an hour and a half away. Also you are not too far from the beach (a lot closer than many western suburbs in sydney are from the beach anyway). And you can have your cats!
Will you or your DH have to commute for work?
I hope it all works out for you, good luck!
Posted 07 February 2017 - 04:35 PM
DH mostly works from home, but he works in the city. He can commute from the station when he needs to go in.
So, he went to RAMS and they can give us a loan to cover the house and our debts. But his parents would need to put up their house as security for a few years.
He just showed me the documents. Looks very fair. Low fixed rate.
Just called the agent. It's currently under contract in the cooling off period. He has our details if it falls through
Posted 07 February 2017 - 04:42 PM
I'd talk to a broker, try someone like Aussie home loans. that way you get a wide range of loan options, and not just RAMS.
Posted 07 February 2017 - 04:51 PM
We looked at Aussie, they wouldn't give us the money.
I know next to something about real estate laws.
Posted 07 February 2017 - 05:09 PM
You'll be my neighbour! Actually, it takes me a good 40 minutes to get to Wyong but everyone on the coast is a neighbour!
The lack of great restaurants is painful but there's little gems around. We have awesome markets and festivals, we have gorgeous beaches and bush, we have an amazing sense of community, we have a little piece of paradise!
Posted 07 February 2017 - 05:28 PM
Try and find someone who will give you a loan where you don't need to use IL's house as security.
It's very unlikely, but you just never know what can happen with the economy and you don't want them to be forced to sell up.
Our mortgage broker had to jump through a few more hoops for us to do it without using IL's house as collateral. They offered it, but I refused for it to be on there. We were fortunate that we had halves in an investment property with BIL and even if the world did turn upside down, we'd still get enough out of both houses to make sure that BIL wouldn't be out of pocket.
The mortgage broker said that he may be able to get it approved without using the investment property, but I wasn't that worried about losing that, just refused to put IL's home at risk. I think I stressed the poor guy out. He and IL's are South Korean (acquaintances, but not that close) and they went to him on their own (thinking they were doing us a favour) and had it all planned out and then in storms me who turns everything upside down. It's not normal for them for the DIL to be so outspoken. They just expect me to greatfully take what I'm given. I think they finally saw where I was coming from and yes, everything has been fine, even with DF being made redundant just after we moved in (and are still pretty crappy).
Bugger! I just read that it's under offer! You never know though, our house was under offer and then fell through as the guy couldn't get approved for the loan. I'm sure plenty more will come up though. You just need to have everything approved and ready to go so that you can pounce on the right one when it comes up.
Edited by BECZ, 07 February 2017 - 05:31 PM.
Posted 07 February 2017 - 05:44 PM
We are going through a similar process at the moment - I assume your broker is suggesting a guarantor loan?
We have a mortgage in principle, we don't have to put up any of our own money apart from settling the stamp duty and settlement costs, my parents are guaranteeing 20% of the loan using the equity in their house. This means we avoid LMI as the risk to the bank is only 80%. We will have the full 100% loan amount to repay and hopefully release my parents from the guarantee over the next 5 years or so.
This was the only way we could afford to buy our next place, so happy the broker suggested it as we were looking at paying $40k in LMI!!
Posted 07 February 2017 - 06:12 PM
It depends on the in-laws really. Or on FIL as it's his house that MIL paid off with her super. He did offer money for a deposit, but this is different as he has a strange thing about owning a house as status.
MIL likes the house and likes the idea. It'll be easier for them to stay over too. One of the bedrooms would be spare and we'd put the pull out couch in second living area for FIL.
Posted 07 February 2017 - 06:22 PM
Love the house but like others I would remove the pavers on the lower part of the yard and have grass instead, leave the pavers on the upper part. Shouldn't be too hard to do but depends on how the pavers are fixed, if at all
Posted 07 February 2017 - 06:26 PM
We are thinking of a fake turf mat. Easier to keep green.
Posted 07 February 2017 - 06:45 PM
Are you trying to avoid paying LMI? It's painful but not that bad when you think about it. We purchased a house in a similar price range and borrowed about 92% (or thereabouts) of the cost. The LMI was 1 year worth of rent for us but it would have taken us another 1-2 years to save the extra 12% to avoid paying it while also paying rent. It made waiting seem like false economy (we didn't have the option of a guarantor loan). We went for it and now have almost 25% equity just from the capital growth over the 3 years. I am happy to recommend a broker if you like - just PM me. Good luck
Posted 07 February 2017 - 06:59 PM
I agree the whole LMI isn't that scary. We've paid it on all the houses we've bought. well worth it, and honestly, the house paid itself out in not having to rent or wait longer.
I would be getting quotes on the LMI.
Posted 07 February 2017 - 07:13 PM
On LMI we were able to build it into the loan (loan with Commonwealth) - I think we ended up borrowing 95%ish we had 10% or so as a deposit but as we had to pay stamp duty and did not get the first home owners grant (as it was an established property) we had to use some of our deposit for that and legal fees etc...
Like PP have said it was worth it for us as the longer we waited and tried and save, the more prices increased.
Also, ask the lenders about the amount of LMI for the amount borrowed. We were encouraged at the time to keep the amount being borrowed under $500k as it made a huge amount of difference to the amount of LMI - over that was another bracket and the rate increased.
Do approach a few banks/lenders as they can vary in what they'll take on - we found CommBank the most accomodating of the big banks whereas ANZ wanted us to have a 20% deposit.
It may also work in your favour to approach your current bank as some have different policies for current customers.
Looking at credit card limits also can help your borrowing power - they tend to consider your credit card limit as if it's maxed out so if they are higher than you need think about dropping them down too - we had much higher limits on our cards than we needed as that was just what we were offered when we took them out.
If this property doesn't work out you will still have your homework done and ready for the next place and you can use the waiting time to reduce the debts/save more.
Edited by Wonderstruck, 07 February 2017 - 07:14 PM.
Posted 07 February 2017 - 07:14 PM
The loan we got with RAMS with the guarantor is pretty good as it pays off quite a bit of debt, leaving us in a much better financial situation.
Posted 07 February 2017 - 07:24 PM
Sorry I should have added that like the PP, the LMI was added to our loan balance
Posted 07 February 2017 - 09:30 PM
DH is on the phone with MIL now and it's not good. Effing selfish FIL refuses to share his assets with his wife despite the fact she paid off his house and supported him for years when he refused to work.
And he won't help her only son, my DH, buy a house when he has a very workable.
Edited by Lunafreya, 07 February 2017 - 09:31 PM.
Posted 07 February 2017 - 09:47 PM
I would try and buy without relying on your in-laws. I wouldn't call someone selfish if they refuse to put their house up as guarantor, they could lose everything.
Posted 07 February 2017 - 09:53 PM
He's not selfish towards us but to MIL. He owns the house she paid for. It's almost bordering on a strange case if financial abuse. He has a big inheritance that he refuses to share and MIL paid off his house. He even lied to DH several times that MIL's name was on the deed and it wasn't.
He even made an offer to help us out buying a house back at Christmas, this was with the deposit. Now all we need is security, not the money.
Edited by Lunafreya, 07 February 2017 - 09:56 PM.
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