Browse Forums Home Finance Re: How big is your mortgage? 11Jul 16, 2007 4:07 pm Cookiemonster It's good fun living in Sydney, isn't it Stonecutter? Heaps - I love high petrol prices, constantly gridlocked traffic, high house prices and bad public transport Re: How big is your mortgage? 16Jul 16, 2007 5:32 pm vanderlay and who is rich/stupid enough to have one over 500k!!! spread over 2 properties. (one is paying itself off they way rent is over here at mo') Luckily prices have gone thru the roof over here, however the expecting cooling off (or bubble burst) has started. My fear is also for those people that may not be able to support big mortgages when intrest rates move. Re: How big is your mortgage? 17Jul 16, 2007 6:32 pm Perth_Euro My fear is also for those people that may not be able to support big mortgages when intrest rates move. I thought the banks were supposed to take into account a few rate movements when determining your eligibility for a loan? Maybe they are not doing this anymore? (same as those 105% loans - seems like madness!) Our mortgage broker showed us what would happen if interest rates moved from the current 7.37% right up to 10% to see if we could still afford the mortgage in a worst case scenario. Re: How big is your mortgage? 18Jul 20, 2007 2:19 pm The thing that makes me shake my head are the people who bought relatively cheaply 5-8 years ago in our area, and have since put kitchen renos, new cars, holidays, patios etc on their mortgages. Even though the value of the house has gone up, they owe more now than they did when they started. And they have kids now, so they're on one wage.
Sure, some of those things add value to your property, but our area is pretty low key so I can't picture house prices shooting up much, if at all in the short term. Cheers ! Re: How big is your mortgage? 19Jul 20, 2007 4:36 pm We had a $165k mortgage, which was great (well under half the value of the property) but then the opportunity arose to purchase a larger property, and keep the current one.....
So now we fall into the 'stupid' $500K+ category (which I swore I'd never do!), but the repayments without rent on the investment are around 45%, but with rent it drops about 30% so we're comfortable. Thanks to smart advice from a friend who is a mortgage broker, we used every shred of equity on the original place (now the investment) to reduce the mortgage on the new place (and create a bigger tax deduction out of the interest) and were able to afford a better place than we previously thought. I'm astonished at people in our area that borrow $500k on 5% deposit, and can't have a day off without pay because it will break the budget. There's no way I could live like that! Re: How big is your mortgage? 20Sep 18, 2007 1:01 pm 250k. We borrowed 100% of our purchase price because the missus and myself had been dirt poor students while at uni. We had enough money to set up and that was about it.
For that reason we bought the cheapest we could find that fit the bill. The only thing I regret about that choice is that it forced me to buy amongst public housing. The house is lovely actually and the people are ok but when the older ones next door pass I bet we end up with atrocious looking housing units built next door! I'll be looking to upgrade at the 5yr mark to avoid living next to that I think. Probably try to keep the place as a rental though, its in prime position! The other problem is that none of the neighbours work and they get rather jealous of us when we spend money on the house or ourselves Just makes life unpleasant for everyone. And because they don't work and rarely leave the house they are always watching us to see what we're doing.... whenever we go into the yard. Lack of privacy and stickybeaking bothers me Sorry I'm ranting. We were spending probably 50% of our graduate wages on the mortgage but now just under 12 months later its less than 30%.... which is nice and comfortable. Thats after tax too.... I don't know how people talk in pre tax dollars, its not money you ever get to see. 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 39690 Broker here - legislation says that every true broker must put the clients best interests before theirs so in theory they must offer you the best options for you on their… 2 46010 |