Browse Forums Home Finance Re: Loan size - what would you do? 21Sep 17, 2009 2:14 pm Option C for me. We looked at smaller designs, then looked at the bigger picture of what we needed now versus the next 10 years. We dont holiday much, but wanted a little extra roo, but not the taj mahal with the power and aircon bills to go with it. All valid points above, I think they need to do some pros and cons, talk to a financial planner to do some sums, and look around. Adrian B Re: Loan size - what would you do? 22Sep 17, 2009 2:24 pm I personally don't think that it really is any of our business. They are the only ones who can decide for themselves what their needs and wants are. They and their lender are the only ones who can decide if they can afford the repayments. We are building a 54sq home. Yep people will bag the cr@p out of us for doing it. Do I care? Did I ask anyone's permission? Nope to both the questions. It came down to our needs at the present time as well as our future needs. It also came down to the size of our property / land and what we could afford. We are building a family home that suits our family needs. Both right now and in the future when our parents become elderly and require assistance. We are doing what is right for our family. We are fortunate to be in the position of being able to do it before we are 40 and also that we are never going to have to move ever again. So it is our once in a lifetime opportunity to choose what we want and can afford. Different strokes for different folks. Some things are worth waiting for. Re: Loan size - what would you do? 23Sep 17, 2009 2:38 pm Hels A 40 square house is approx 360 sqm. 1 square = 9 sqm (think of how a noughts and crosses board looks with 9 boxes ) Thanks for the clarification. Holy cow, I feel woefully inadequate. We have a small 3 bed 1 bath house built in the 70's, and when we had our evap system put in a couple years back, they said our house was only slightly bigger than 100sqm (not including wet areas....so add another 10 - 20 max). Given that, I reckon that a 40 square house is HUGE Re: Loan size - what would you do? 24Sep 17, 2009 5:35 pm I didn't start this thread to make anyone feel inadequate or excessive because of the size of their home. I was just curious to see what the majority thought about the 2 options. Neither way is right or wrong and everyone should do whatever suits their own family, it's not our place to be judgemental. I also don't think my friend would build a 50sq house just to keep up with the Jones's or to be the best house in the street. She wants to do it because they are in a position where they can do it right now, and sometimes you have to take the opportunity when it's there. Where as the husband is thinking further ahead and wants to be sure of their financial security. I expect they will come to an agreement soon about which way to go. Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: Loan size - what would you do? 25Sep 17, 2009 9:54 pm Hels I didn't start this thread to make anyone feel inadequate or excessive because of the size of their home. I actually don't really feel inadequate. I was just being silly. I stand by my original statement saying that I think finding some common middle ground will best suit your friends. Re: Loan size - what would you do? 26Sep 17, 2009 9:55 pm cmooring Hels I didn't start this thread to make anyone feel inadequate or excessive because of the size of their home. I actually don't really feel inadequate. I was just being silly. I stand by my original statement saying that I think finding some common middle ground will best suit your friends. No worries I agree about finding middle ground too. Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: Loan size - what would you do? 27Sep 17, 2009 11:14 pm How about option one but splashing out on the yard. Indoor/outdoor living to make a house seem huge and have a big swimming pool. Setting up an awesome outdoor area has to be cheaper than an extension to the house but no less impressive if done right. For many people the whole indoor/outdoor mergence is an aesthetic thing. It doesn't matter to them what it cost as long as it can be comfortable and beautiful. Gravity. Its the law. At lock-up stage(lock-up stage) https://forum.homeone.com.au/viewtopic.php?f=31&t=25438 Re: Loan size - what would you do? 28Sep 18, 2009 7:56 pm pinkfairymagic Option 1. I would be more than happy with the 35sqr home with all the trimmings. Sounds lovely. I'm pretty easy pleased, I also don't need the mcmansion as I am not into statius symbols. I'm with her 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: Loan size - what would you do? 29Sep 18, 2009 8:09 pm Hi there, If interest rates go up, things may get more difficult. I'd go in between but on the lower side as am not a fan of McMansions. 1. Too much cleaning. 2. Too big when the kids move out. 3. Stairs are difficult when you are older. Harribeka Re: Loan size - what would you do? 30Sep 18, 2009 8:21 pm A light hearted observation ... Maybe some should try living in another country for a bit. You'll soon realise how positively comfortable and big a 190m2 home is let alone a 300m2 house. Gives much needed perspective. In saying that and to echo other replies .. up to them For what it's worth ..... Rather than look price of house, we could look at the family as a 'business' How much does it cost to run and how much income does it generate. Big house - more costs, simple. What if your time is worth something? Even m ore on a big house. Add to that the kids, schooling, lifes treats and wrap it up as a package. It's all money. What do you stand for as a family? Values? I sometimes wonder if we get a bit attached to the whole house thing (as damn well exciting and joyful it is). it serves a purpose and can't replace a stress free happy life where you can ride economic ups and downs. Sooo, if it was me, I would look at all options and cost it out over w few years (like a cash flow), include every single budget item you can think of to present a realistic view of your family spending. That way you can see the results in front of your eyes with the smaller, medium and BIG options and make the choice on what is right for you. There endeth the Sermon! Re: Loan size - what would you do? 31Sep 18, 2009 10:02 pm Wombat, that was a great and sensible post, thanks Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: Loan size - what would you do? 33Sep 20, 2009 12:57 am Wow, that's one loaded question Although the sensible side of me says to go for the smaller house of course, the other part of me says that if I was in that situation, I might also be taking all that I could. The only reason we settled for a house as "small" as ours (33 squares) is it's the biggest we could leverage to with our savings and income. We would have gone bigger if we could. Not to show off or anything, but just because we CAN!! Metricon Riva 33 - http://herlihy-riva.blogspot.com Site start 15/03/2010 - Handover 23/12/2010 9 months and 8 days (284 calendar days) from site start to handover Re: Loan size - what would you do? 34Sep 22, 2009 11:19 am I'd like to add a new option. Lets call it Option D. If they have $300k of equity it sounds like they may be in a similar position to where I was. Depending on where their current home is and what they could gain out of it in rent and capital gains I would keep that, use the equity as a deposit on the new place, play a little with the finances and let the renters pay off their new home (which I would take as Option C). If everything goes wrong and house prices stay flat, someone loses a job or anything else, just sell the old house and you are back to your current thought process. Money spent now will be worth a lot more for you in the future. If house availability remains as it has for the past 5 years we may be in for more increase in house values, let the property work for you..... This mind you is a much riskier approach. View our blog at: http://room4acubby.blogspot.com/ Re: Loan size - what would you do? 35Nov 21, 2009 4:56 pm There's another non tangible side to the story. It could be easy to dismiss someone who wants a bigger house as wanting to keep up with the Jones' but when one person is at home every single day with the kids, it becomes their workplace. Everyone wants a comfortable and happy workplace! Seeing a cluttered and messy home every day can do a person's head in - space could be the solution!! It's not all about size either, its about space and design. Sometimes a 25 square house works better than a 40 square house, because it suits the occupants better. Eg a 25 square house could have three bedrooms and a great rumpus room for the kids, whilst the 40 square could have 5 bedrooms and not much else! There's not much point spending any money on a house that you don't like for the long term - although 1st homes can be the exception ( ) but when you are talking 2nd/3rd home emotion and comfort do matter. As long as someone can afford it and that they agree on it - that's all the really matters. (Oh and sometimes happy wife is happy life.... just kidding...) Re: Loan size - what would you do? 36Nov 21, 2009 5:05 pm mpcj There's another non tangible side to the story. It could be easy to dismiss someone who wants a bigger house as wanting to keep up with the Jones' but when one person is at home every single day with the kids, it becomes their workplace. Everyone wants a comfortable and happy workplace! Seeing a cluttered and messy home every day can do a person's head in - space could be the solution!! It's not all about size either, its about space and design. Sometimes a 25 square house works better than a 40 square house, because it suits the occupants better. Eg a 25 square house could have three bedrooms and a great rumpus room for the kids, whilst the 40 square could have 5 bedrooms and not much else! There's not much point spending any money on a house that you don't like for the long term - although 1st homes can be the exception ( ) but when you are talking 2nd/3rd home emotion and comfort do matter. As long as someone can afford it and that they agree on it - that's all the really matters. (Oh and sometimes happy wife is happy life.... just kidding...) Totally agree with all of this. The house we have had designed is nearly 40m2 bigger than our last house, but it actually has one less bedroom and minus the games room we had in the old house, so 2 rooms less, but bigger house. We wanted space in all areas this time, not just the living area, so that everyone has their own decent space. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19687 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 8910 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 40437 |