Hi mummy's, sorry I know this isn't really the right place to be asking but I am clutching at straws and my head is completely done in!!!
I am sick to death of paying rent and we have managed to save only $10,000 which has taken us years!! I know Rams and Aussie have a 5% deposit which is good but we are still a further $10k off a deposit.
House prices in our area are roughly $470,000 for a "renovators delight" lol. Our broker said that EVEN with $20k deposit we can only borrow $419,000! (Mainly because of the 3 kids and that I've only been self employed a short time)
How on earth do people do this and get their foot in the property market door!? I feel like it's all we've worked towards and thought about for years!!
So with a company like Integra that you can finance through them, buy land and build with $10k deposit, balance on land due 2-3 weeks after signing contract, land being approx $350,000-370,000 even with the $20k first home owners grant,there's not enough left over to build. Having said that, does anyone know of a builder or company that allows you to leave things like fencing, gardens, painting, tiling, cabinetry etc out of the build as we can do these things ourselves.
IF we secure the land now, save, refinance and build later, how do we repay the land loan plus pay rent??? Surely the banks will ask this question too and knock us back?
I'm exhausted please help!!! Any recommendations would be greatly appreciated xxx
Oh, please no suggestions to relocate to a cheaper area etc... we have older family responsibilities and kids are secure at school. We live on the Sunshine Coast, Qld. Also we have no option of a guarantor unfortunately.
3 Replies
We had a $30k deposit and added the FHOG of $10k to it (back when it was reduced stamp duty not the current situation) and were approved for a $475,000 loan. We weren't renting at the time so didn't have gas, electricity or water bills but we had everything else still including health insurance.
Have a look at ways to reduce your current spending - growing your own veggies, dropping health insurance for the kids if you have it, only attending bulk-billed appointments, just little things. Put yourself on credit not a phone plan, realistically do you make that many calls/texts to ever need X amount of $ worth etc. We found dropping private doctors appointments helped heaps.
Cheaper suburbs is the only way. The sunshine coast is expensive, surrounding areas though you can buy a house for 350000. Thats how people do it.
I know people who have bought a cheaper house in a suburb that's not convenient for them to live in. They've then rented out the house until they've got some equity in the home, so they could sell and buy in the area they want to live in.
You'd want to do your numbers really well and have a good understanding of where the market cycle is, and how long you'd need to hold onto the investment property for.