Hey mums!
This might be a personal question so please don't think I'm being disrespectful.
Hubby and I are at stage 1 of beginning to start saving for our first home.
We have little to no savings so we have a long road ahead of us, but I'm a little confused as to what's a good amount to save to get the ball rolling.
We will be looking to purchase a house at about 320 thousand.
When I spoke with a Mortgage broker for some advice he said we need to save about 11% of the total value of the loan- which would equal about 30 thousand I think.
So I'm confused. Because I see "package homes" being offered with a $5000 deposit and stuff. So I was just wondering how much everyone saved for there first home? How long did it take you and did you find once you had saved to your goal was it an easy process to get the ball rolling to become a home owner?
Thanks so much mummmas xxxx
How much to save for first home (confused)
How much to save for first home (confused)
Posted in:
Money
5 Replies
We had a house and land package and it cost us about 390, 000 all up. We had a 70k deposit. My partner had that saved before I met him and it took him about 7-8 years to save (as a single guy with no dependents living at home). We could have given a smaller deposit (not sure what % of the price it was sorry) but we figured the more money we give the less we will have to pay back with interest stuck on top! It wasn't an easy process for us, it took about 16 months for all our paperwork and then our house to finally be built! We had a baby during that time and had to live with my in laws which was a nightmare in itself. So if you are looking at building make sure you are prepared for delays. The reason we decided to build was we get a brand new house for 390k whereas in our area there are houses that are 20/30 years old for 450-500k and they needed a lot of work. Our mortgage is now only $380 a week which is great for us! I assume that's because of our deposit. We are in a 3x2 btw.
I'm not sure if that answers your question but I hope it helps!
Oh and a $5000 deposit was never offered to us. Because of the house and land we chose our deposit needed to be higher. I think it might have been around 25-30k, I really can't remember sorry. You would want to pay more deposit than 5k anyways, because the more deposit you pay the less interest you have to pay back.
Also our house & land package was 375k but we had about 15k added due to site works, upgrades etc.
I think the package homes are different because they are a new build. Some builders are offering extra incentives etc and some states have payments to promote building that can be used for part of a deposit. If you talk to one of the package places they can tell you what's available in your area. They can also talk you through what the process is in regards to a new build.
There are always extra expenses involved whatever way you go though so it's not a bad idea to have a little extra involved.
Also talk to some real estate agents in your area as they will be a wealth if knowledge regarding what the process involves regarding buying an established home.
In south australia we have 'homestart loans' and they run courses on budgeting and home buying.
In order to get a loan from the bank you need at least a 5% deposit but if you do not have a 20% deposit you will have to pay mortgage loan insurance, which is not cheap.