My brain isnt working!! Help with maths please!!
 

Hi, Im normally great with Maths, but my brain isnt working!!

If we have £20,000 gbp to put down as a deposit on an Australian house, what price range should we look at buying over there?

ie . I know cant borow any more than 80% of value of house in Australia, so if we put down $44,000 aud, what would the house value be roughly?


My brain has given up:D

Re: My brain isnt working!! Help with maths please!!
 

Are you saying that $44000 will be 20% of the value of the house?

If so, $22000 will be 10%....and $220000 will be 100%.

Is this what you mean?

Re: My brain isnt working!! Help with maths please!!
 

Thats what I kept coming up with - and that didnt seem right that the value of houses would be $220k


I thought a deposit of £20 in uk money was quite good, but it seems it doesnt stretch that far in Oz

Re: My brain isnt working!! Help with maths please!!
 

why do think you can only borrow 80% ??

Re: My brain isnt working!! Help with maths please!!
 

Well, you may want to hold onto your money for now, as there is a lot of talk of economic slump, mini recession, rising interest rates etc, coming around the corner. The sustainability of growth in the housing sector is in question and there is some debate as to whether house prices will hold on to their value. It is a bit of a jittery time to buy here at the moment.

Of course, this may all be a load of nonsense, but the other day, the oz stock exchange had its single biggest losing day in history. Not the sort of stuff to inspire confidence.

Sorry to worry you....I'm renting at the moment and won't be looking to buy for at least another 18 months

Re: My brain isnt working!! Help with maths please!!
 

Depending on whether they are coming on PR or TR the banks lend different amounts. TR can usually only get 80% finance.

Re: My brain isnt working!! Help with maths please!!
 

pass!! Because I thought I read that you can only borrow 80% of the value of the property. If we sold our house in the UK then we would have an equity of about £30k probably.

Seems based on this the best thing to do is rent out our house in uk, whilst renting in Oz, then when our mortgage is almost paid, sell up and buy in Oz. Interest rates on mortgages in Oz are higher than the UK, so does this make sense to rent in Oz untill we have a bigger deposit? Otherwise well be living in a shed!:D

Re: My brain isnt working!! Help with maths please!!
 

http://www.realestate.com.au/

have a look at the mortgage adds on the right hand side ;)
this should give you a clearer picture ;)

Re: My brain isnt working!! Help with maths please!!
 

Hmm, some say we could borow $385,000 based on joint income of $82,000, and repayments would be about $2500 a month ish.


I think we'd just rent for a year anyway, and see how our costs of living go etc. so is still a case of saving up to cover emigration costs, or re-mortgaging to raise some extra money if need be.

Nice to explore all avenue's though