movin'on

So after perusing realestate.com.au and looking at houses in our price range well - our dream price range - I decided to do the mortgage rate calculator. Ok you might say, a bit late for doing that - wouldn't that be most people's first stop - hey I'm not always that bright...

So after finding my hypothetical 'dream' house (not an unrealistic million $ one - just normal suburbia) - the monthly mortgage would be $5k a month! A bit hefty I thought to myself (a bit?!!). Then when OH converted it (roughly - calm down don't know current exchange rate) - 2.5 thousand POUNDS a month - are we MENTAL???

Back to the drawing board, and a longer commute into the city - if we ever get around to buying......

Hmmmm

bcworld

Not sure of the point in converting it back to pounds?? I would think those repayments compared to your salaries would be more important! Then you can decide if you're mental! Remember to bank on rising interest rates.

What are we talking here....$600k - $700k mortgage?

Centurion

Hate to say it but if you are looking at the $750,000 mark - this is not a typical median price so your mortgage will reflect that.

The situation is no different from the UK. Property is not cheap in Australia generally, especially desirable ones.

spartacus

Yes . . . unless your take home pay is $15k per month . . . or you don't need to worry about take home pay.

moneypenny20

Didn't have a dream home in mind when we were planning the move. However the house we have suits us and cost a hell of a lot less than 750K Do you already have a job waiting? We were odd in that we bought within minutes of landing (almost). However most people rent for a year or more before they know where they want to live and want to put money down on a property. Who knows what you or your man will be earning then.

JenniGee

Sounds crazy, but in my ideal world we'd buy before we leave & just move straight in from landing

But I know exactly where I want to live, we've visited it twice & know the schools...anything else, shops, cafes, etc are all much of a muchness, what's important is that they're there

I've also had my fill of renting & don't want to do it any more thank you. Obviously it might be an idea to tell OH about this at some point

movin'on

The problem is - probably, that we've been renting in a nice suburb for 18months on a temp visa. Finally decided that we want to stay, but to stay in our suburb - again, must stress, not a particularly trendy or 'desirable' suburb, but still out of our price range. We have friends, kids are in local primary school, know the shops, cafes, gym etc - to move means to start again. Obviously we will keep our friends and can drive to the same shops (if it's so important) but the kids will have to move schools etc.....

I know you can't always get what you want (a la rolling stones [I think!!]) but I don't really want to start again.... but unfortunately, it's a choice of mega-mortgage, 3 bed house (- with 3 kids and frequent visitors not an ideal option), or move suburbs. Those of you who have been here a while will understand that after moving here from the UK and getting settled, to make the move to a new suburb even a mere 20mins away, feels like a massive upheaval.

I need to get things in perspective, and re-think everything but (bottom lip out) I wanted to stay here....

Oh and btw before I get slated for wanting to buy on a temp visa - we will not be buying before getting PR so please don't give me a hard time about that! (As I said - we're (well I'm) just dreaming at present....

movin'on

You're right - there is no point in converting - but it just kind of put it in perspective for me. As OH said - we wouldn't be earning this much in UK so ridiculous to compare.

yes $600 - $700 mortage

Geelong Gent

Just think about the impact of future rate increases heading our way.

from 5% to 7.5% is a 50% increase

Say a modest $500k home on 20% will be $400k x 5% = $20k per year
suddenly it now becomes $400k x 7.5% = $30k
Thats $10k per year
If they are on $114k ie 3.5 times being equal to $400k thats a 9% pay loss
If they are on $60k ie 7 times or 17% pay loss
food for thought consequence to housing demand for increasing house prices.

shears

mmm just slightly crazy!! Really, you'd think of buying a house you haven't actually seen ... just trusting the estate agent/photos? Would you have someone here you trusted to check it for you?

Ok make that totally crazy

squeezzii

sorry, Im nosey, what is the suburb -do tell!

mand-jim

I'm also keen to know which suburb....

movin'on

Looking at Kardinya, Bull Creek, Leeming, Winthrop and surrounds. Looking further south now at Bibra Lake (still pretty expensive) and more realistically North Lake, South Lake. Despite the fact that nearly all the houses in the areas I'm looking in are sold, they are still $600+ for 4 x 2. North & South Lake has some nice ones for $400+. As I said, we're looking for our ideal home - 4 x 2 with decent amount of land to build a small pool if there isn't already one.

It's difficult as we are very settled here but I suppose it's just a matter of getting your head around moving away from what you know.

mand-jim I noticed you're in Como - have you bought or are you going through the same issue as us? I've had to take Como off our list as it just seems too pricey.

mand-jim

We're renting in Como, can't afford to buy around here, we could probably only afford a 1 bedroom place in Como / South Perth. I think we'll have to venture NOR once we're ready to buy. We like Mindarie & could probably afford something in Quinns Rocks. I want to live by the beach anyway so happy to move away from the city.

JenniGee

Yep...we do have someone over there who we would trust to look it over...I guess it might be an idea to tell them too However, we would get a good surveyor involved & get a good relationship going with the local agents too.

The suburb is Eltham, though we like Montmorency too....plenty of house for your money there, good links into the CBD & it just feels like you're out in the countryside... hills, trees, very nice