hubby say “Can’t …can’t…can’t”

my partner doesnt read either that aint a problem you have to educate yourself more and then tell him …its good cause it opens your communication up….Ummmm the book says to rent and buy a investment and rent that out.So i would follow the gurus advice personally (Steve)

Aafreen

It spounds like a wrap would be ideal for your situation! One of the pivotal points in ensuring a wrap works is to find a property that, once the sums are crunched and the repayments are etsablished, that the repayments equate to roughly what you would be paying in rent anyway. You make a valid point re: renting now & saving for 12mths vs getting in now and enjoying hopefully some tax free captial gain.

As for IR, our current economic climate is still firing away as good as its ever been. Unemployment is down which should have meant IR would only move one way but now with the $AUD going so well, rates will remain on hold for little longer yet. I’m no economist and I have only studied economics briefly at uni so this is purely my opinion but one observation that can be made about the economy is that there is always a time lag when economic policy is implemented. There has to be, there’s 9.34mil of us working so it takes a little time to pick up the beat[] So what I mean by the above is whenever a montery policy e.g. change of interest rates by RBA etc or fiscal policy change e.g. increase/decrease in taxes or gov. spending etc, there is always a time lag that preceeds the desired affect on the economic climate – and that lag can range in time to varyaing degrees depending on the affects the policy is trying to achieve and the time it takes for the market to react and reflect that policy change. My point here is at the moment, things still look ok and many commentators have suggested that it will remain that way for a little longer yet (BTW commentators don’t really know either but have spent a bit of time observing but I bet they can’t tell you when a war is going to be or a size 8 earth quake through China etc). If things do change, you have the added bonus of the time lag before the full effect takes affect. However, there is no point in knowing there is lag if you are not astute enough to use it to your advantage. By that I mean, you need to read the papers, listen to those boring statements on the economy and subsequent policy changes so you can implement exit or entry strategies if deemed appropriate.

The down side is if IR start to move while being in your own place, as you stated below, repayments rising while prices drop is a real possibility. You may be forking out more and your house value stagnates!

However on the other side of the coin, this could be used to your advantage. A year worth of savings, interest rates rise, house prices correct and you could walk into a house that you could’ve only dreamt of owning 12months prior. I think there is little doubt that there are home owners out there that crunched there no.s to the last dollar so they could get in but will find they have over extended themselves. Also, should you decide to wait, another consideration is the ongoings of owning a house would be suspended for that time thus adding to your kitty for a bigger deposit.

I don’t think I’m alone here when I say “please bubble, hurry up and burst!” I think there might be a few of us circling at the moment.[]

I hope this has been a help. []

Cheers
Steve

There’s a few points

quote:

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We spoke to a mortage broker and a bank and both said we can not qualify for a home loan. First because we do not have a deposit (we had 35K last year then blew it all away on a world tour last feb[]). Second because hubby is self employed and im a stay at home mum (2 kids).Then they said if we come up with 10% deposit, we won’t have any problems.

now, hubby thinks the only way to buy our home (or IP) is to wait for 12 months and try to save.
i disagree with him, i have read (little) about wrap, lease option 2nd mortgae ect, and tried to tell him there are other ways but he says “there are no such things, why would the vendor wanna do that etc, etc.” My problem is, i have not fully grasp the idea of these alternative financing thus i am unable to explain to him fully. and he is not willing to read! other thing is, i have not worked out ( in numbers) whether it will be better to wait and save or better to get wrapped ? i know we pay higher IR in wrap, but wont renting while trying to save cost us more ?
what about the timing ? if we wait for another year, what will be the prices then? our earnings don’t increase as fast as house prices. what about property price crash ? how does that happen ? is it better we wait for IR increase maybe prices will go down but that means our repayments are higher coz the cost of borrowing is more ? i think i need a financial adviser.

Forgive my ignorance, i don’t expect to be spoon fed. as a matter of fact, i am trying to learn and educate myself as much as i can. even with full resistance from hubby, I am halfway thru steve’s book, have read lots of the posts in this site, went to some free wealth creation seminar, almost signed up for a “15K mentoring program”, drove 6-8 hours away from Melbourne(with 2 kids) to get a feel of the area and check out listings of different real estate agents. But after all these, i still couldn’t put the pieces of the real estate puzzle together….i still have a lot to learn and i would appreciate any help.

*looks like this post suits more in the soap box

thanks,
aafreen

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hi Aafreen
Melbourne is a big place!
Do you have a specific area within Melbourne you would like to buy? Some wrappers (me included) buy houses and then find the wrap buyer afterwards, so you may find that if you mention a more specific area, someone like me might say, hey, I’ve got a house available there, and so be able to give you some more accurate numbers to think about.

Keep smiling
Felicity

Hi there, only new here but heres my two cents worth.

Are people aware that the Reserve Bank of Australia is 49% owned by J.D? Rockefeller, and it is up to him when the rates go up? Or so I have been told anyway. And it is not only “Australia’s” Bank that is privately owned, it is 80% of the worlds reserve Banks.

Can anyone confirm/ reject this piece of information?

Regards,

Brent