iainandsam

Advice needed please,
been here 8 months, have rented house in Uk due to market, looked into a mortgage here a broker told us our only option is to put down 40%, not possible. OH has been self employed since we've been here and we nothing to prove income apart from bank statements but do have rent payments from the time here and mortgage statements from UK, and advice?? want to stop renting and get on the property ladder here.

Tooterelli

There is no ladder.

fairywings

It might be worth talking to your bank, they maybe able to help you.

You might also find the banks are getting more strict with who they lend money to because of the global finance situation.

sarnydee

I've been thinking about this a lot too lately... What is it with our British mentality that we want to own property?? We also left a house in the Uk, which is paying for itself, and came to Perth 4 months ago. We're renting a lovely, new 3 bed 2 bath house, we're both working and have a comfortable lifestyle, and the subject of home ownership has raised it's head. We'd love to buy a plot of land and build a home, like many of our friends have done, but the flipside of that is that we'd have to save like mad for at least a year to get a decent deposit together, which would mean sacrificing our life here. At the moment it's nice that we can afford to take trips and see the place that we spent so long trying to get to, this we wouldn't be able to do if we're saving every cent. I've had the dream of living here since I was 16, I want to see some of the country now that i've finally made it!! Our equity in the house in the UK will be a nice sum, and if we're patient and wait for the market to pick up, in a couple of years we'll easily be able to afford a decent house in a good area. But I'm putting pressure on myself to buy now! You will have the money to buy eventually, if you equity in the UK of course, so what's the rush???

ABCDiamond

I think that is very good thinking.

sarnydee

Why thank you ABCDiamond!! I know renting is dead money, but some things are more important. I want to be able to enjoy the fabulous lifestyle that we're so lucky to be able to have!

Centurion

Agree. See your bank. If someone is requiring a 40% deposit then I suspect your being offered a no doc or lo-doc loan. Your bank will have a better idea of your income. Alternatively since its near the end of the financial year you can always do your tax return and accounts for your partner as soon as. That way you will have an income "officially" for the last financial year.

Some ideas anyhow. As to renting over buying, whilst I understand it suits some peoples life style to rent, I'd rather invest my money into my home and be able to use that money later down the line in terms of equity and so on. That and I found when we rented initially I absolutely hated not being able to do anything to the property or living in in the uncertainty of the landlord making a decision not to renew. And as to the inspections and having to deal with agents - don't get me started

LoneRanger

Yes in some aspects renting is dead money but the same might be said of equity as the only way you ever see it is when you sell the property, your dependent dies or you take out some of the equity and actually pay a premium on your own money which in many ways never ever seems like your own!

Kath & Graham

We are in that predicament shall we sell up here at a heafty loss and buy, or just come over and rent this out here and rent over there, very hard decision as I know I shall worry about leaving this place, but I know a lot do it. On plus side of renting if you decide you dont like house/area at least you can move on!!!

ABCDiamond

The other way to look at equity, is to end up buying the most expensive you can, and then, as you get older, sell up to trade down to a smaller, cheaper, property. You then have extra money for retirement, but still somewhere of your own to live in.

I know where sarnydee's thinking is coming from, as I blew my finances in my first years here, enjoying my new country, and it is something I remember well. It did cost me the opportunity to buy a cheap house in Sydney, but weighing things up......
Which one is best: Bricks and Mortar or good memories ?

That $150k house I could have bought is now worth $900k

sonlymewalter

Ahhh but think of the memories

sonlymewalter

To the OP: Try find a mortgage broker as they will find you the best mortgage around. If you go to a bank they might only recommend their deals, which may not be the best around.

If you do see a broker, make him/her work for their money. Challenge them on the deals they've found to make sure they too aren't going for something that suits their pocket [bonus]. They claim not to receive payment. None the less I'd challenge what they come up with.

The market's tough out there and banks have pulled back. Be prepared to look around and something will come up. Good luck!

ABCDiamond

While we are on Mortgages....

Some variable rates, (these are basic rates, not honeymoon specials)
5.04% National Australia Bank "Choice" package loan
5.11% ANZ Bank "Simplicity Plus" no frills loan.


5 year 'fixed' rates are from about 7.14% as far as I can see.

http://www.ausinfo101.com/finance/

chellebelle

Hi there,
the problem here is not having an "employee" job, but being self employed. This is why you are being told 40% deposit - this would be your own lender (probably one of the major banks) guidelines. This is for a "lo doc" loan when there is a lack of financial statement history. Most banks ask for 2 years financial statements for self employed persons. If you can get projections, backed up by a very good set of financials from the time you have been trading you may be able to get the deposit down from 40% to 20%.... but with the majors it would be a big ask. If you don't have 20% deposit that means you would have to go through mortgage insurance and unfortunately self employed less than 2 years for them is usually a big no.
Speak with a good mortgage broker in your area. There are lenders out there who will go with 20% deposit on a low doc without you having to produce financials etc, but it is harder these days. If going down this path you may have to pay a premium on the interest rate so make sure you weigh up all the pros and cons.
Good luck.... and remember if it doesn't happen now... good things come to those who wait.

thlo

You missed on low doc home loans by a few months. Policy changes back in March make it hard for you as you are self employed and without a single tax return, lenders would say no. That's why the 60% Low Doc is probably right like what the broker you spoke to said.