- Originally posted by Mortgage Hunter:
You need to work on a 20% deposit and this will cut the Mortgage Insurers out of the loop.
On a $50K income you may well be able to buy a home for much more than the range you describe – but I would need to ask a few more questions to get a feel for the upper limit!
If you can transfer the debts to your partners name then you will not need to disclose them. Perhaps a consolidation loan might be the answer? After you get the home then both incomes can be fed into knocking it over?
This is not specific advice – just tossing some options out for thought.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Simon,
I don’t know how my girlfriend would react to having my 25k of debt moved to her name. How does one actually do that anyway?I dont think I would want to go too much over 180k anyway because of the cost of the mortgage payments. Obviously once my loans and cards were payed I would have an extra 750 or so extra to throw into the mortgage payments, so the equity for our first IP would come relatively quickly I hope..
wise words john!
Hi Everyone~
Thanks for all the advice. So it sounds like my hub and I are on the right track…we are already doing what some of you have suggested.
We take a portion of our monthly income and put it into savings before ANY bills or debts are paid. We will use that for our deposit. We only have one credit card now (the others were paid off awhile ago![biggrin]) and we pay the minimum plus $200 -$250 more depending on what’s available for the month. We also have a car and I’ve got a school loan payment that we’re working hard on getting rid of.
We’ve evaluated what got us into debt…and that was basically anytime a little extra money came into our hands we would spend it on stupid things instead of saving it. We’ve definitely got that under control now as we don’t do anything anymore!
The last large spending splurges that we had were for a new suit for my husband b/c he was very patient and used his old one to literally it’s lining BUT we made sure we got a deal for it, and we joined the gym b/c he won a 6 month membership…so we both joined for the price of one! Going to the gym keeps us busy enough to not go out and spend a night out on the town or go shopping. BUT to avoid going insane, we have allowed ourselves to have 2 nights a month where we either go out to dinner or get take away…but we don’t spend more than $30-$40 and if we’re not borrowing movies from my brother who has every one imaginable, then we are going on cheap tickets night! We’ve learned what delayed gratification means now! We’ve got our eye on the prize and we know what path to take to get there.
Thought I would provide an update. We did manage to save up a deposit. We didnt need much because of the first home owners grant and stamp duty concession . Ended up only needing about 6k I think to secure a villa unit costing 180k. We bought that early 2006. Then we started saving again… Then my girlfriend wanted to become my wife. So we ended up using the savings on the wedding. I've been paying down the consumer debt. The motorbike loan is down to 3k and will be paid by March. a 1.7k of credit card and 2k of overdraft to pay and I'm out of debt except for the house. The house is going to be a rental though when we purchase our next property. We hope to have the deposit for that ready by the end of 2008 or first quarter of 2009. Our unit is now worth 200-210k based on a similar unit that was sold recently. At some stage I would like to get some savings in an income focussed manged fund (like Navra) with the income meeting the holding costs of negative geared IP's. In the future I want to have a neutral cash flow (initially) portfolio of funds and IPs. As we gain equity and rents go up, the portfolio should start becoming postive cashflow. Thats the plan anyhow.
Cheers
SimonHi, Voigtstr
As I was reading through this thread, I thought it was a recent one until I noticed the submission date, going back to July 2005.
Have a similar plan to yours. Just got an apartment for $330.25K and am getting married at the end of the year. Putting most of the salary into the loan and using a shared credit card as much as possible. Minimal debt except for the apartment. Looking at building up another deposit over the next 3 yrs and making a move again in 2010 / 2011. Kids will come into the picture around this time. Hopefully, rising equity can be used to help with the deposit for the next bigger place and the rent rises will make the current apartment netural (or positively) gear in 3 yrs time when we rent it out and refinance to an IO loan.
All the best.
Daniel Lee
You must be logged in to reply to this topic. If you don't have an account, you can register here.
