Mortgage's In Oz
Mar 25th 2010, 10:51 am
#16
Forum Regular
Joined: Aug 2009
Posts: 33
Re: Mortgage's In Oz
Is there tax relief on the mortage interest payments in Oz ?
Would need to factor this into affordability calcs.
Would need to factor this into affordability calcs.
Mar 25th 2010, 11:16 am
#17
Forum Regular
Thread Starter
Joined: Mar 2010
Posts: 243
Re: Mortgage's In Oz
No worries mate, we earn about 250 a year between us, one permie one contractor (me) and bring in around 14k per month but bills are expensive and with the mortgage to be and general bills will come in at about 8k per month so 6k spare.
Depends on if you are permie tho as you cant track back as much cash and the salaries are always lower for permies.
Where are you wanting to buy? What do you do? PM me if you like?
Cheers
Sean
Depends on if you are permie tho as you cant track back as much cash and the salaries are always lower for permies.
Where are you wanting to buy? What do you do? PM me if you like?
Cheers
Sean
Mar 25th 2010, 12:39 pm
#18
Account Closed
Joined: Nov 2009
Posts: 153
Re: Mortgage's In Oz
I agree No 15, but the high end houses where I live have also struggled to sell. The 600s to 800s seem to be going quite quickly which is why we have pitched in that space but for me and where I live Coomera Waters, location plays a big part.
Rent is coming down slowly but its still astronimcally high in some circumstances, we pay 600 per week and I can now get a place on the water for 635 a week. Its better for us to buy then line someone elses pockets but then only if you are in that position is it better.
I think if you can build there is still money to be made which is why we are having a go at it...I am hoping after spending 680 on the build it will be worth 750-780 once its build after comparisons to other houses where we live.
If I could build and promise myself that each year, I could get a saturday job
Rent is coming down slowly but its still astronimcally high in some circumstances, we pay 600 per week and I can now get a place on the water for 635 a week. Its better for us to buy then line someone elses pockets but then only if you are in that position is it better.
I think if you can build there is still money to be made which is why we are having a go at it...I am hoping after spending 680 on the build it will be worth 750-780 once its build after comparisons to other houses where we live.
If I could build and promise myself that each year, I could get a saturday job
Mar 26th 2010, 5:18 am
#21
Just Joined
Joined: Mar 2010
Location: Perth
Posts: 3
Re: Mortgage's In Oz
Hi oxford lad
Your have quite a healthy income which makes thing a bit easier for you.
the problem being is the size of deposit you have, it is possible to arrange low deposit loans but you will have to pay (LMI) Lenders Mortgage Insurance - This is payable by you and is an insurance that covers the lender - NOT YOU- in the event that you default on the loan and can be quite expensive. LMI is usually payable on anything less than a 20% deposit
having said that if you are looking to buy in WA, Keystart may be an option if you are a 1st time buyer, they accept 4% but need 2% genuine savings but will include the First home buyers grant (FHOG) in your deposit
Its very difficlut to give you any concrete advice until getting more in depth details from you,
Get in touch via email, I would be happy to help
All the best.
Your have quite a healthy income which makes thing a bit easier for you.
the problem being is the size of deposit you have, it is possible to arrange low deposit loans but you will have to pay (LMI) Lenders Mortgage Insurance - This is payable by you and is an insurance that covers the lender - NOT YOU- in the event that you default on the loan and can be quite expensive. LMI is usually payable on anything less than a 20% deposit
having said that if you are looking to buy in WA, Keystart may be an option if you are a 1st time buyer, they accept 4% but need 2% genuine savings but will include the First home buyers grant (FHOG) in your deposit
Its very difficlut to give you any concrete advice until getting more in depth details from you,
Get in touch via email, I would be happy to help
All the best.
Mar 26th 2010, 5:42 am
#22
BE Forum Addict
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: Mortgage's In Oz
What about interest payments to bank, mortgage insurance, home insurance, council rates, maintenance costs...etc etc? Then you also include the one-off costs associated with the purchase of a property.
But agree with your strategy, buy land or a dilapidated house and build/renovate it yourselves. Have done that myself
But agree with your strategy, buy land or a dilapidated house and build/renovate it yourselves. Have done that myself
Mar 26th 2010, 5:45 am
#23
Guest
Posts: n/a
Re: Mortgage's In Oz
Examples of Lenders Mortgage Insurance on a 100% Loan in Australia.
UK Lenders Mortgage Insurance
It actually doesn't seem much different between the two countries.
- Less than $300,000: 2.02% to 2.85% of the loan amount.
- $300,000 to $500,000: 2.61% to 3.71% of the loan amount.
- Greater than $500,000: 3.33% to 3.42% of the loan amount
UK Lenders Mortgage Insurance
- On fully verified 100% loans, dependent on the lender and the risk, mortgage insurance can cost up to 3% of the amount you are borrowing.
- If you have 20% or more deposit and all other factors are in line, mortgage insurance is generally not charged.
It actually doesn't seem much different between the two countries.
Mar 26th 2010, 5:47 am
#24
Guest
Posts: n/a
Re: Mortgage's In Oz
What about interest payments to bank, mortgage insurance, home insurance, council rates, maintenance costs...etc etc? Then you also include the one-off costs associated with the purchase of a property.
But agree with your strategy, buy land or a dilapidated house and build/renovate it yourselves. Have done that myself
But agree with your strategy, buy land or a dilapidated house and build/renovate it yourselves. Have done that myself
Mar 26th 2010, 6:00 am
#26
Guest
Posts: n/a
Re: Mortgage's In Oz
If you start working on will it drop or will it rise, you are investing or gambling, not buying a home.
A: If it isn't paid off, then that is your choice. Many people pay off even before the 25 years is up, helped by inflation with wages rising, with rents rising, but repayments staying relatively steady.
Mar 26th 2010, 6:52 am
#27
BE Forum Addict
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: Mortgage's In Oz
I am not about to spend $$$$$s just to be able to satisfy my freedom to drive some nails on every wall and hang pictures.
My choice
I don't need a mortgage.
Last edited by IndieG; Mar 26th 2010 at 6:55 am.
Mar 29th 2010, 4:08 am
#29
BE Enthusiast
Joined: Nov 2009
Location: Dullsville
Posts: 672
Re: Mortgage's In Oz
I agree, rental yeilds are rubbish right now, average 4% in Perth, less 1.5% maintenance costs, sure you get negative gearing but only works when prices rise every year otherwise you'd be better off putting that extra money in the bank.
https://www.ubank.com.au/ub/web/home
Glenn Stevens (RBA) says property market may be overheated is a sure sign that rates are on the up, great for us savers.
In the first of a series of excerpts from the interview, being broadcast on Sunrise this week, Mr Stevens cautioned against property investment as a "riskless'' path to riches.
"I think it is a mistake to assume that a riskless, easy, guaranteed way to prosperity is to be leveraged up into property,'' he said.
"It isn't going to be that easy.''
