Sandaville

I hate not having our own home. The main reason for me not settling here yet. Looking to buy as house prices are going up, worried about not being on any property ladder, sold our house in the UK.

Problem of course money is sterling! Exchange rate terrible. Solution mortgage? No what we were hoping for 2 years ago (GFC need I say more!).

Spoke to broker this morning. Have to show bank savings from the last 6 months (I haven't saved anything in a savings account!). Husband just got a job and had to pay to move interstate. Getting interest on house money but not in Australia. Told you have to save here, the fact you have had a mortgage in UK does count, nor money in account overseas. You start we no credit rating and you will be unlikely to get a mortgage for 6 months to one year. Now I want to go back to UK!? First the GFC halves my money so from buying two small properties, I now can't even buy one....

I worked hard before I came saving. Spend so much time planning and I just feel these fat financial twats are taking everything I have worked for away. Yes I'm sure there a lot of happy Australian expats out there who came 4 years ago. They can go back to the UK and be mortgage free. Change my money up and things could change again and I would have half my money again if I return to UK!?

So here I sit looking to work out, what to do, life is so short. Renting is a mugs game but it looks like I have no choice. Is nothing ever going to work out. If anyone has some encouraging words I need to here them. If you are in the same boat, what are your solutions apart from grin and bear it.

Fluid36

Why do you hate not owning a house?, what's the big deal?. Sorry but I'm just genuinely interested in why this would be the case and the issues you may have with renting?

Thanks

Mike 3G

Hi Sandaville,

Thats us been here 2 years now.

Here is our property story so far.

We have just bought our first bit of land over here and will be entitled to the 1st homeowners grant. We also have a small amount of equity from the UK and will have some savings we have gathered since we arrived down under again not really huge amounts. I think it depends on your expectations when it comes to housing. Many of the expats I have met lived in 3/4 bed semis in the UK that you couldn't swing a cat in located in an outer suburb. Yet when you ask them where they are struggling to pay their aussie mortagage they are now living in an exclusive coastal resort with a $600K mortgage and wondering why they can't aford a loaf of bread Our mortgage here will be very similar in terms of the amount borrowed but due to the interest rate here it shall hit us in the pocket a bit harder than back home. We are just trying to keep it sensible by buying in a middle of the road area as opposed to where we currently rent which is stunning and on the ocean but way out of our price range if eating on a daily basis is something you like to do. I also think renting for a few years is a good chance to get a feel for the area before you commit.

The long and the short of it is we are going to have our own place by next year that we can call home. We will have taken a hit on the exchange rate and ploughed 99% of our savings into it. What else can you do if you want to buy.

Sandaville

I have a family and to me simple things like wall colour matter. My Son has a sick green wall I'm not allowed to paint! At least we have hooks this time. My Plasma TV still sits in it box as we are not allowed to drill holes in someone else's walls. There garden is so badly designed that it is a maintainance nightmare. If it is your own you can make it easier to keep, etc. The financial issues are that in years to come you will not be able to buy ever, nor help your family. Struggle today for a easier life in later for me it's a no brainer. The Landlords and home owner in the long run will always be better off than renters who will have nothing to show at the end of there tenancy.

Sandaville

Glad to hear you are finding a solution, even if not ideal. It is so hard if I were younger I think I would be ok with it all.

We didn't want a mortgage originally... a reason to move here (ha ha!) Beach forgot the beach I live near a power station very rural, apparently people from Melbourne have pushed prices high because of a programme calling 'Seachange' (not that I'm near the sea!) we tried to make a go of it in Queensland but work was non exsistant for my husband! I worked casual to reduce the money we needed from UK but for the moment I'm grateful that my husband finally found a job (took 6 months) like the good job he had in the UK.
Prices seemed fairer in Brisbane (1 hour from lovely area burpengary) for what you got, and I loved the area. I hate this area. Looking at closer to Melbourne Warragul, but prices are high and my husband is not very realistic we are also looking to build as get a regional grant here too.

Rural areas and my line of work is unlikely but hopefully I can find something when my husband isn't working. NO CHILD CARE (miss my mum & dad!)

Steve2009

It seems like you need to remind yourself of the positive aspects of tenancy and make it work for yourself in the short term. If you wish to become a mortgagee in the medium term then you need to start preparing for that. Those "fat financial twats" have a job to do protecting their money and I don't see how they are at fault.

Craig Vaughan

HI Sandaville,
The exchange rate is ridiculous at the moment like you say, problem is I dont see it getting any better.

But what you have said there about savings and credit file is the policy of some lenders, but not all. The savings can be in an overseas account and you can borrow up to 90-95% of the purchase price providing you are employed (of course) with income sufficient to cover the mortgage repayments. You need clean credit history in Australia (having no credit history is fine) and 5% genuine savings. Genuine savings is generally only required if you have less than a 10% deposit and it counts if its been saved up or held in an overseas account. Providing you can provide 3 months statements that is sufficient.

I know all of this because I specialise in temporary resident and Australian expat home loans - I was once an expat myself living in, studying and working in Nottingham Trent and thats where i discovered that there really was not anyone specialising in this area. So its what I do for a living and i survive generally because most bank managers and brokers do not understand policy in this area and just put it in the too hard basket.

Interest rates are standard - its just not all lenders are available but plenty of good ones that are with very good interest rates etc.

If you would like to PM some details would be happy to let you know what you need to do or whether perhaps you can do something now. cheers

Bermudashorts

I didn't see anything in your post that suggested somebody took something away from you. Are you not just unfortunate with timing and current FX rates? Like many of us.

Renting isn't a mugs game, it has its place. I have tried out those mortgage calculators and quite often I have seen that I would repay almost double what I would borrow, some could say that is a mugs game.

I would rather be in my own house too at some point, but for time being there are some advantages to renting, we get to try an area out, we are not responsible for maintenance. I wouldn't have rented a house if I found the decor offensive, we have used these funny stick on picture hook thingies that we found in Bunnings (and I have some substantial pictures and they are holding up). My plasma TV sits on a media unit.

Cheer up.

MarkandS

We have just gone through the mortage thing. Basically if you are putting a 5% deposit down you need to show that you have actually saved that amount in an Australian account. If you are going to bring money over, or pay at least 10% deposit then it does not matter where that money comes from, you can transfer it into your account and then apply.

Hope it all works out for you

Sandaville

I do, I would never run away from my financial problems, but they have let so many do so that it is then written off and we are all paying for it. The twats short the markets for there own gain and then those who are careful and never spend more than they can afford don't go out and waste there money end up paying for it. Too little too late.

Short term rental, we have no choice now looking working full-time and putting my child in to childcare when not at school. Hardly the lifestyle I was hoping for, but what other choice do I have, may face facts that Australia is for those 2 years ago but now not for me.

Sandaville

Thanks for this advice, miss Brisbane had to move to rural victoria for work and just not liking it very much. Brissy is best.

Sandaville

Plasma doesn't have nor can I get a stand for it hence still in box! Choice of housing was limited. In fact there was only two houses available one on main road so dangerous the other this one! (then we had to wait 3 weeks before we could get in, and the place smelt of old curry very unpleasant! Took days of cleaning a spraying before the smell went still smell it in the blinds yuk) Sadly rural areas are limited and so was our time as we had moved from Queenslands in a 3 man tent. Not much fun with a 4 year old after a couple of weeks and my husband had to start work. Not unpacked twice now wonder what is in all these boxes! Still on the bright side. May not have to repack if and when we do get this house. Miss my old home so bad, I just can't feel settled I know it is silly but it is just the way I feel. My son told me he can't remember us in our house in England, it broke my heart, fortunately he is more robust and loves it here, so that's why we stay, for him and his future, just hope it is the right call! Your equity normally goes up on your own house and your rent may also go up you just can factor for every possiblity. GFC is a bloody good example eh?

steen1976

Up and down. Long term it'll work out usually. But take Ireland for example. I know a couple who bought two houses in the good times. Combined mortgage of 850,000 euros. Their houses are worth about 500,000 combined now. And that equity deficet is going up all the time as house prices are still dropping. I can't see a long term break even for them in anything less than 15/20 years. Australia won't suffer anywhere near as bad as that but there is no doubt a market fall is due. It always and will happen.

I rented a house in my home town when I moved back. The rent was £750 per month. The interest alone on a mortgage if I'd bought it would have been £900. I'm looking at very simialr stories when researching Sydney.

Owning a home is great but sometimes it makes more sense to rent. Just need to get lucky with the place you find.

Steve2009

Sorry for posting off topic but I thought I should point out that a break even in terms of sale price equalling purchase price is not a break even in real terms. There are holding costs, opportunity costs of capital employed, as well as monetary inflation. They very well may never break even in real terms in their lifetime.

Sandaville

Very true, renting fingers crossed third time lucky (another 6 months or a year!) it will be my own place or a place more to call home. Yes I know it is even worse for some but we were so close, to getting what we was possible and to see it go in front of you eyes just makes it harder. I worked for nothing those last couple of years if I had know I would have sold and gone sooner if I could have! Hindsight a wonderful thing. KSARA