well, my boss's wife came in yesterday to talk about the loan information i wanted.
I WISH SHE HADN'T!!!
and I wish we could have trolloped along in our own oblivious way.
however, here is the big picture, all are relating to a property around $320 000:
scenario a)
No Deposit = $10 000 in mortgage insurance, plus another approx $4000 in fees.
total need for scenario a: $14 000 (approx)
scenario b)
5% deposit ($16 000) = $5000 in mortgage insurance, plus another approx $4000 in fees.
total need for scenario b: $25 000 (approx)
scenario c)
5% deposit($10 000 from BF's mum and $6000 of our own) = $5000 morgagte insurance and approx $4000 in fees - HOWEVER we would have to sign a statuary declaration about our intention to pay back the $10 000 (as the bank would treat it as another loan that we have), as well as having a written and signed legal document with BF's mum as well.
total need for scenario c: $15 000.00 plus $10 000 from BF's mum.
There is also the $7000 first home owners grant, but I have this feeling you don't get it until you've bought the house, which could be a bit tricky.
We have just under six months. It's going to be tough. We've talked a little about it already (which is a HUGE step!).
I have already worked this out:
Weekly Net Income: $1291.50
Less:
Rent: $263.34
Bills: $100
Food: $140
(my) phone: $4
(my) skincare: $8.15
(my) petrol: $30.00
(my) loan payment: $37
bank fees: $2
Total available after expenses per week:
$707.01
If we were to save $700 per week, for 25 weeks, we could possibly save $17 500.
Plus my approx savings: $1500
Plus BF's approx savings: $2000
Plus Bf's tax refund approx: $1700
$22700.00
What I want to know is, who has done this? who has gone from spending as much as they want to spending NOTHING at all? i've allowed about $40 extra for groceries than i normally do per week. BF does not pay for his mobile phone or petrol. I have not included alcohol for BF, although he does drink. I have calculated it on our normal incomes. BF sometimes works more or less. I sometimes work more or less. I also haven't included $60 a fortnight which my dad gives me.
I feel bad, but I think I've given up before we've even started. It just seems too hard.
HELP. i think i've given up before we've even started...
August 21st, 2008 at 09:54 pm
August 21st, 2008 at 10:08 pm 1219356506
August 21st, 2008 at 11:08 pm 1219360108
Just curious though - why does BF not have to pay for his cell or gas? Is it part of his job, or might he have to budget for those expenses in the future?
Don't give up yet! The worst case scenario is that you try hard, and end up deciding that you just aren't quite prepared to make the leap. And that wouldn't be so bad, would it? You'd have much more saved than you would have otherwise, and when you DO decide to do it, you won't have to stress half as much, because you'll have most of the work done already.
I can't speak from experience, so I guess I'm just wishing you luck!
August 21st, 2008 at 11:34 pm 1219361665
I am impressed by the fact that you are buying property at 20. I am 29 and havn't bought property yet !!
The only thing I will say is that your post indicates you are going to put yourself & BF under huge pressure to achieve this goal.... what about just deferring purchasing the property for a year or two ??? Think about all the money you both will save in that time and you won't have to live like monks..... you have LOADS of time on your side.......
Good Luck !!!
August 22nd, 2008 at 10:30 am 1219401023
$4,000 on other expenses is really good. Here in VIC the Stamp duty alone for that amount of loan would probably be more than $10,000. Each state is different that's for sure. BTW when we got our house we got the first home buyer's grant during settlement, which luckily helped us to pay off some of the stamp duty, lawyer fee, etc. Not sure how it works in QLD though.
It just shows why having 20% deposit will saves you a lot off money by not having to pay the mortgage insurance. Good Luck with it all. I say at least give it a go and just see how close you can get to your goal, hopefully in 6mths time the prices and interest rate will be a bit lower.
August 22nd, 2008 at 08:07 pm 1219435676
I would also say to get rid of your debt before purchasing a house.
I strongly urge you to take a step back and rethink this. Try to detach yourself emotionally from the process. It's very hard to do. And what would be the best way to approach this purchase.
You might not be ready yet. And that's fine. here in the US many people bought house with 90%, 100%, and 105% mortgages. Usually, these were at higher rates and carried mortage insurance payments. These people were living paycheck to paycheck and when they hit a bump, everything came crashing down.
I would also wait for marriage before buyingh a house. What happens if you and BF break up? How do you liquidate the assets? What if you have to do a short sale?
I do wish you the best of luck and please don't take anything I write as being personal. I am just offering my advice.
August 22nd, 2008 at 09:25 pm 1219440334
My suggestion is to come up with a timeframe. Maybe in 12-24 months. You want to be able to still enjoy life while saving to get the home and while you're in it. Life is way too short, to put yourself in "prison" just to buy property. Plus, if you get the home and you aren't "really" ready financially, you will find yourself in more financial bondage.
Just calm down; re-evaluate your reasoning for the high pressure and rush. Then come up with a reasonable timeframe that will allow you to breath and exhale without choking.
Hope that is helpful!
Sharman
August 25th, 2008 at 10:49 pm 1219704586
sillyoleme:BF doesn't have a working car, he rides a bike or uses his work vehicle to get around (or mine for personal driving). the business he works for pays all the petrol expenses, and his mobile phone bill.
sheila: stamp duty for $300 000 or less is around $700. stamp duty on a property around $350 000 is around $3000
thanks to everyone else as well. i do appreciate the concern and advice. i don't want to go into describing the aspects of the property in our area, but please be rest assured that we KNOW we can afford mortgage payments, with or without rate rises, and with extra payments. we also have lived in the area we are buying for a good amount of years (try a decade) and have a fair idea of what the market is doing. i also don't want to go into explaining the details again of renting in the area, or what's going to happen if we leave it too long. but i just wanted to let you know thankyou for all your comments, i was really just having a vent and a rant. we're aware of what we're doing, the only thing we weren't aware of was the amount of mortgage insurance (which is the whole reason i got my boss's wife to get us the info).
thankyou everyone.