Browse Forums General Discussion Re: What would you do? 14Sep 28, 2007 9:55 am yeah a few people have said that to me now... don't get out of the market entirely. You're right though the talk of housing units means now is the time to bail from that one! I couldn't think of a quicker way to devalue the property!
The establishment costs on a new loan are the big stumbling block right now I guess. 20k in mortgage insurance, stamp duty etc that would be needed upfront. Hence the idea of pulling out for 12 months and saving these fees up.... plus a little more. Re: What would you do? 15Sep 28, 2007 10:28 am -mick- The establishment costs on a new loan are the big stumbling block right now I guess. 20k in mortgage insurance, stamp duty etc that would be needed upfront. Hence the idea of pulling out for 12 months and saving these fees up.... plus a little more. 20K mortgage insurance!?! Are you sure? Have you borrowed millions? Re: What would you do? 16Sep 28, 2007 10:44 am # Loan amount required :
$350,000.00 Purchase stamp duty : $4,250.00 Mortgage stamp duty : $1,120.00 * Mortgage insurance : $12,944.35 From the wizard home loans purchase cost calculator. Plus legal fees and loan establishment fees is about 20k These are all the upfronts. I don't have a spare 20k at the moment... hence my original plan was to leave the market for a year and save it in cash plus a bit extra..... Re: What would you do? 17Sep 28, 2007 10:48 am I think i have a solution for you.
We will move into your Nanna's house for ten years rent free. We are fairly reclusive so don't need entertaining areas and we have no children - just two guinea pigs which will suit the 3 foot fences just fine. You can sell your current house if you wish to get away from public housing (although i grew up in public housing and i too now possess a degree - we don't all end up on the dole!). Then buy another one to live in. Alternatively we could throw in ....say...$100 for rent a week. And you can use that money on your mortgage. How does that sound? Re: What would you do? 18Sep 28, 2007 10:54 am Then after every few months, build an extension of extra room at the back, rent it out for $100 per week...
Few years later, you will have enough money to buy another property without that huge insurance cost... Re: What would you do? 19Sep 28, 2007 11:12 am -mick- # Loan amount required : $350,000.00 Purchase stamp duty : $4,250.00 Mortgage stamp duty : $1,120.00 * Mortgage insurance : $12,944.35 From the wizard home loans purchase cost calculator. Plus legal fees and loan establishment fees is about 20k These are all the upfronts. I don't have a spare 20k at the moment... hence my original plan was to leave the market for a year and save it in cash plus a bit extra..... Is that a 100% loan? Re: What would you do? 20Oct 23, 2007 12:47 pm sorry cookiemonster yes it is. I realise the rate would be less with some kind of deposit in hand..... anyway its all a moot point now I didn't mean to leave you hanging I just stopped checking back when the answers became less than helpful
Thanks to those who helped in the thought process there. In the end common sense won out and we're going to move into the free place for at least a year, two if it works out nicely. I've had the house (my house) revalued at roughly 310k now which is a 60k capital gain over my purchase price 12 months ago (I knew the area was an up and comer). We're going to hang on to it and have a tenant sewn up who is the daughter of a family friend so we know we can trust them. We'll rent it to them for as long as we live at Nannas and the gap between rental income and repayment is $140 per week which is fine. This way we stay in the market and continue to receive any more capital growth in the area, which since we are going to look around the same area again will protect us from increases there. We have lived there longer than 12 months so are able to avoid capital gains tax when we sell, we can rent for up to 6 or 7 years without losing that status I've moved up to a new job with really good pay and between us we will be able to save at least $1000 after tax per week without sacrificing anything in terms of lifestyle and happily servicing the mortgage etc (plus a new car.... thats not optional cause the other halfs little 4by is suffering!). So after 12 months we will have 50k savings plus the 60k profit on the house and however much more it grows in the meantime. Take out a few fees and such we'll have 100k to go house hunting with in 12 months which means no mortgage insurance etc for us (we'll be shopping in the 400 - 450k bracket). The longer we stay the more we can save which is great! We might even have to consider building at the end because we will have a free place to stay while its being constructed! If we built later in life no way would we have such an option! Cross that bridge when we get there though Thanks again guys and girls, it was a hard decision but your advice did help Bought in Nov 21 at the height of the market (classic). Good area, atrocious floor plan. BUT has land out to the left-hand side that we can extend out on (see second… 0 8784 Thanks mate. Yeah good points! Leaning towards Option 3 to get a bit extra space in the cabinets but not going too crazy high (and expensive). Would require a mini… 13 39755 Hi It came to my attention after the handover that - The facade cladding on the face and the side are not straight. -The face tapers down by 50mm from left to right and… 0 2472 |