British Expats - Mortgages?

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- - Mortgages? (https://britishexpats.com/forum/australia-54/mortgages-417348/)

Renting for 6 months worked well for us.

It was a third of the mortgage repayments so we could look for the right house with no panic and saved up money.

Had no job when we came out...2 weeks had a temporary post, one month had a permenant. Maybe I was lucky but it worked out.

There are a lot more houses than the ones on the net. And many of the ones on the net are there because they can't sell.

Rent first for six months. During that time you will be able to hopefully get jobs and decide where exactly you want to live. As for the "dead money", well yes it is, but its a small expenditure compared to buying a house in an area that you subsequently regret [remember here in WA, stamp duty etc means it can cost you $25000+ dollars in additional costs, agent fees etc just to move to another house at the same price].

Once you've done all that then go and sort out a mortgage.

I dont think there are any guidelines like the UK I think they dream up a figure and times it by 3! :D

The amount of money we were offered by the banks when we came over was stupid and to be honest scared the living daylights out of me as it was nearly 8 times our joint income. :scared:

We didnt need to wait 6 months for a mortgage infact the other half was a temp and I was 1 day in to a 3 month work probation period.

Quote:

Originally Posted by Munchmel (Post 4256783)

Hi, I've done some online mortgage calculators, but can't seem to suss out how they decide borrowing criteria in Oz. Obviously its individually assessed, but there doesn't seem to be the UK equiv like 4.5 x single salary or 3 x joint salary. It seems to be based on outgoings and dependants (which with 4 kids is wiping out our mortgage possibilities!! :) ) Any advice/explanations appreciated. plus do you have to wait 6 months to build up a credit rating?

Mel
:confused:

Quote:

Originally Posted by Ian & Sharon (Post 4257654)

I,m flying out to Brisbane in 7 hours :D

I've got a mortgage sorted out and I'm on a 457, the lady said there would be no problem.

Here's one of the examples

OPTION 1

Loan amount $200,000

Interest Rate 7.47% Variable

Repayments $1,394 per month on Principle & Interest

$697 per fortnight on Principle & Interest

She's sorting out a letter for the morning which will say something along the lines of "yes he has got X in the bank and yes he can borrow X amount"

Yeh, my OH got a mortgage no problem and he was out here on his own. The only real issue with being on a 457 is that once you find a house you need FIRB approval to buy it. It's just a matter of completing an application form and submitting - it is usually straight forward. Just another load of red tape to cut through.

M:)

HHmm a lot of eager beavers on here by the sound of things!..my two cents on this is rent for a while.. even 12 months! rent is massive over here, next to the house we bought was a family who have been renting for 6 years!! :scared: thats a $400k property for $340/$350 p/w which is nothing on what you pay for a mortgage repayment up this way, and added to that, just 2/3 main bills per month ..I could see the up side ..very little worry??
OR!! to help folk like me in earning a crust...build :D

But if they got brought that house 6 years ago there repayments would have been a lot less then $350p/w. :)

I can only see rental prices going up anyway, and when that happens more people are going to buy investment properties push house prices up .....

Quote:

Originally Posted by SBUK (Post 4259194)

Quote:

Originally Posted by onepearlyb (Post 4257632)

Know what your saying but the problem with renting being "dead money" is that the other option - to rent a short let place for say 2-4 weeks while you find somewhere to buy, is that the short lets are AT LEAST $150 night which mounts up to be a fair whack over a month. ( at least $4500 before other costs like internet set up etc ) If you went for a rented place for say $350 a week - that'd be $1400 a month!!!!!! BIG difference.
It's a tricky scenario but I'd say rent a short let for a week or so when you first arrive and spend that week or so finding a 6 month rental or shorter rental so that you have time to look around areas instead of perhaps rushing into making a purchase you might regret.
I know it's really difficult but that "dead money" I'm highly likely to spend on a rental might just buy me the time I need to find a place I really love.

Hope this helps.I've rented before in Melbourne so I have a rough idea of prices etc.

*pearly*

Another option is to go fort he 6 month rental and then if you find somewhere to buy you look to break your lease, basically you are responsible for the rent until they find new tenants. Soem friends of ours did this after 6 weeks in a house and the agent found new tenants vry quickly. They ended up having to pay an extra weeks rent and $200 advertising costs.

Cheers

Paul