I need to know....

[mighty_tiger_79]

Do we need a renno's thread?

[mighty_tiger_79]

I got notified of being tagged in another topic, however it didn't work when it appeared I was tagged in for another one.....

is the tagging a bit hit and miss?

[heater31]

I got notified of being tagged in another topic, however it didn't work when it appeared I was tagged in for another one.....

is the tagging a bit hit and miss?

probably incorrectly tagged...... @mighty_tiger_79

[mighty_tiger_79]

yep, it seems you are correct

[HH3]

I need a bit of advice before I go looking for REAL advice.

The Mrs and I want to get out the rent game, and purchase our first house.

We both earn ok money (nothing special), and our rents close to what a mortgage payment would be. We do struggle to save any sort of meaningful cash, so getting a deposit together in the next few years is pretty much out of the question. (Saving on top of rent is a bit tricky)

I've talked "off the record" with a bank lady about getting a personal loan to the value of whatever our deposit would need to be, and use that, then consolidate that within the home loan. She said it can be done, but she was very vague and wasn't really interested in talking about it.

What I need to know is, does anybody know if it's a viable option to get into our first home? We would probably go for a $30-$40K personal loan, then get a homeloan of between $400-$500K.

After going through all the info available to me without actually meeting with someone, this is really the only option we have. If it is an option that is.

[toot toot]

I need a bit of advice before I go looking for REAL advice.

The Mrs and I want to get out the rent game, and purchase our first house.

We both earn ok money (nothing special), and our rents close to what a mortgage payment would be. We do struggle to save any sort of meaningful cash, so getting a deposit together in the next few years is pretty much out of the question. (Saving on top of rent is a bit tricky)

I've talked "off the record" with a bank lady about getting a personal loan to the value of whatever our deposit would need to be, and use that, then consolidate that within the home loan. She said it can be done, but she was very vague and wasn't really interested in talking about it.

What I need to know is, does anybody know if it's a viable option to get into our first home? We would probably go for a $30-$40K personal loan, then get a homeloan of between $400-$500K.

After going through all the info available to me without actually meeting with someone, this is really the only option we have. If it is an option that is.

I'd look at getting one of your parents to go guarantor (meaning if you stuff up the bank can get the money off them) that way you can borrow the full amount and get away with not paying mortgage insurance.

[Spargo]

You'll need more than $30-$40k for a loan amount of $400-$500k
Deposit, stamp duty, loan insurance...
Also, whilst some banks take into account you're paying rent, they generally want to see some sort of consistent savings pattern over a period of time.
It's a massive head f#ck - good luck.

[HH3]

You'll need more than $30-$40k for a loan amount of $400-$500k
Deposit, stamp duty, loan insurance...

If we went for a 5% deposit home loan and got a $400k house, that would cover it wouldn't it?

I understand the interest, fees, and insurance go up the less you put in yourself, but really there's no other option.

[HH3]

I need a bit of advice before I go looking for REAL advice.

The Mrs and I want to get out the rent game, and purchase our first house.

We both earn ok money (nothing special), and our rents close to what a mortgage payment would be. We do struggle to save any sort of meaningful cash, so getting a deposit together in the next few years is pretty much out of the question. (Saving on top of rent is a bit tricky)

I've talked "off the record" with a bank lady about getting a personal loan to the value of whatever our deposit would need to be, and use that, then consolidate that within the home loan. She said it can be done, but she was very vague and wasn't really interested in talking about it.

What I need to know is, does anybody know if it's a viable option to get into our first home? We would probably go for a $30-$40K personal loan, then get a homeloan of between $400-$500K.

After going through all the info available to me without actually meeting with someone, this is really the only option we have. If it is an option that is.

I'd look at getting one of your parents to go guarantor (meaning if you stuff up the bank can get the money off them) that way you can borrow the full amount and get away with not paying mortgage insurance.

I would never ask anyone in my family to risk their house on me.

I'd rather rent then put people in that position.

[bennymacca]

(All numbers from memory)

Stamp duty was like 12k when I bought my 285k house 8 years ago. Mortgage insurance was 2.5k or so. Conveyancing 300.

We could take the 7k first home buyers grant off that.

Reckon we had about 25k deposit and the mortgage was around 270.

Those numbers could be very different now no idea.


Another option might be homestart? Is that still a thing? I think it pretty much means the government buys 30% of your house (and the equity of that when you sell)

May be another option?

[Q.]

Save for a decent deposit. Both get second jobs if you have to.

[Q.]

HH3, you're basically proposing that you borrow 100% of the value of a home, of which about 10% of that is in the form of a higher interest personal loan. Have you calculated the enormous amount of interest you'll end up paying in that scenario, and while you'll have mandatory mortgage insurance, you'll have no such cover on the massive personal loan*

edit: actually, you can pay for cover on personal loan, but still, the whole thing is a bad idea

[bennymacca]

i agree, "cheating" the system doesnt seem like the best idea

Another thing to take into account is the extra expenses of owning a home. Keeping the yard maintained, buying tools etc, fixing things when they break, etc etc. I was surprised at how much this all costed. Not to mention rates, water, etc etc.

So I would say even if your rent is the same as your mortgage, you will also need to factor in significant additional costs

[bennymacca]

homestart is still a thing, might be worth checking out

http://www.homestart.com.au/Home

[The Bedge]

HH3, you're basically proposing that you borrow 100% of the value of a home, of which about 10% of that is in the form of a higher interest personal loan. Have you calculated the enormous amount of interest you'll end up paying in that scenario, and while you'll have mandatory mortgage insurance, you'll have no such cover on the massive personal loan*

edit: actually, you can pay for cover on personal loan, but still, the whole thing is a bad idea

Close.. but I think if I understand what he's saying correctly, he will only have one loan - HH3 is suggesting taking out a personal loan to use as the deposit for his home loan, and consolidating it into his home loan - so he would pay out his personal loan with his home loan, and have one debt.

Still risky, means he's going to essentially be paying 30-40k more for his property, include the interest on top of that, just not sure there is value in it.

[HH3]

This is why I'm looking into things.

We maintain the yards, etc now.

The way I would want it structured (I would never rush into something without being totally sure its feasable) would be -

Eg.

$40k personal load for deposit.

$380k house on a $400k 95% home loan (So $360K + $20k from the loan + $20k for fees/insurance/etc)

So in my fantasy world where everything works perfectly, we would have a $400k loan that would cover the house, extra costs of getting the house, and the personal loan.

I am aware of the extra costs of owning a house. Currently we maintain all the yards, any small things we fix ourselves, and pay the whole water costs (less about $80 a qtr)

Council rates will be something new, but if we have to cover them, we can plan our budget around them.

[HH3]

HH3, you're basically proposing that you borrow 100% of the value of a home, of which about 10% of that is in the form of a higher interest personal loan. Have you calculated the enormous amount of interest you'll end up paying in that scenario, and while you'll have mandatory mortgage insurance, you'll have no such cover on the massive personal loan*

edit: actually, you can pay for cover on personal loan, but still, the whole thing is a bad idea

Close.. but I think if I understand what he's saying correctly, he will only have one loan - HH3 is suggesting taking out a personal loan to use as the deposit for his home loan, and consolidating it into his home loan - so he would pay out his personal loan with his home loan, and have one debt.

Still risky, means he's going to essentially be paying 30-40k more for his property, include the interest on top of that, just not sure there is value in it.

Exactly. We would be risking losing money if for some reason we have to sell the house at a loss in the future, but its that or pay increasingly expensive rents.

[The Bedge]

Just remember HH3, you'll be paying e.g. $40k plus interest extra on the value of your home - want to make sure it's a long term investment, because if you decided to pack up and sell a few years down the track, I'm not sure you'd have the equity in the home to make some money off it and ensure a suitable foundation for the next property. Does that make sense?

*edit* - as long as you know the risks, I understand what you're saying about paying expensive rent for someone else's home..

[Q.]

Move somewhere smaller and cheaper for the next two years. Get second jobs. Save every ******* cent. Build a 20% deposit to a $300-350K home.

[HH3]

Just remember HH3, you'll be paying e.g. $40k plus interest extra on the value of your home - want to make sure it's a long term investment, because if you decided to pack up and sell a few years down the track, I'm not sure you'd have the equity in the home to make some money off it and ensure a suitable foundation for the next property. Does that make sense?

*edit* - as long as you know the risks, I understand what you're saying about paying expensive rent for someone else's home..

Yeah, we don't want to buy to sell in a couple of years. We want a place that we can call home for a long long time. Get the right house in the right area first time round and there'll be no reason to sell.