Browse Forums Home Finance 1 Apr 05, 2012 6:24 pm Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Re: Paying rent while building 3Apr 05, 2012 7:37 pm Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Re: Paying rent while building 7Aug 21, 2012 3:01 pm mr.21 ... So strictly speaking, the last two months or so will be the hardest. Or the last 2 years, depending on who you are building with You will need to be pretty sure your builder can finish the house on time, or include hefty penalties for lateness (good luck getting the builder to accept this). 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: Paying rent while building 8Aug 21, 2012 6:19 pm We didn't have a lot in physical savings, but needed to utilize the redraw on our first home. Our bank would only give us 90% of the value, and that's the value they determine it to be worth. They didn't take our upgrades into account when estimating the value. So we needed probably $40,000. Remember too, if you build you will need cash for driveway, fence, landscaping, window furnishings etc. Doing it as a renter with your expenses is fine, but you'll probably need more savings. Costs always blow out. Re: Paying rent while building 9Aug 27, 2012 12:25 pm MalinViktoria Location: Brisbane north/west side, QLD Price range: Max $300,000 Current savings: $10,000 Savings we're hoping to have by the time we go to get pre-approved for a loan: $30,000 FHOG eligible: $7,000 - provided they continue this Building boost eligible: $0 - because we'll be too late.. boo. Current income: Approx. $800 per week Current rent: $250 p/w Current bills: $80 p/w Car: $40 p/w Hi MalinViktoria, I know you wrote this post months ago, but hey, the thread is still going and maybe my response will still be useful. If you want to make sure you don't run out of money, you need to make sure you will be able to pay your expenses, rent and maximum mortgage all at once. Maybe work backwards? Your fortnightly income (because I prefer to work in fortnights) is $1600. Take out rent, it's $1100. Take out bills and car, it's $860. So, let's call it $800. Monthly, you have $1600 to spare. By my calculation (on this: http://www.smartsearchfinance.com.au/mo ... lator.html) your repayment on a $270k interest-only loan (at 7%) will be $1575 a month... so you shouldn't run into trouble if you end up paying your whole mortgage (interest-only) and your rent at the same time. It might just be a bit tight! I recommend you pretend that your repayments are $1575 from the start and save the difference between your actual repayments and the $1575 every month so that you have some money to fall back on if you need it. Best to get used to money being tight.. and then when you no longer have to pay rent, it'll be a nice change! Though you'll still need to factor in your P&I repayments after the interest-only period ends. We have been saving as if we are still trying to get a deposit together, even though we got there almost a year ago - I want to have $30k in the offset by the time the house is finished so that we will have cash for appliances and furnishings, a bit of room to move if we need it Something to think about that I haven't mentioned or calculated here... LMI.. if your deposit is less than 20% you'll have to pay LMI as well. Like kitkat90, we have a set amount of money we save each fortnight so we already have a buffer as the loan draws down.. the only thing that will be affected is the amount of money it is. I went through and worked out how much the repayments at each stage will be after each progress payment and how much we'll have to adjust the savings we put aside each time - I was happy to find that we'll still be able to save a bit per month even when we get to the end Shop around carefully for a builder - some do have standard inclusions that you could be happy with. We haven't upgraded much at all in our place (truth be told we don't yet have the final variation so I can't tell you how much it is, but shouldn't be more than a couple grand) so we know we haven't blown our budget, and we have plenty of savings sitting there just in case. Save save save! 5.5m Terrace House - Lightsview (Northgate SA) Moved in!! - 22 February 2013 /viewtopic.php?f=31&t=53455 Re: Paying rent while building 10Sep 29, 2012 11:58 am Just thought I should check in on this thread; a lot has changed! Thanks kitkat and juski for your recent replies! Here is an update on our situation and plans: Location of build: Brisbane west, Fernvale, QLD Price range: $370,000 Deposit: 10% / $37,000 Loan amount $333,000 Construction grant eligible: $15,000 Mortgage insurance: Approx. $8,000 (included in total loan amount), if I've calculated correctly Current situation Current income: Approx. $900 per week Current rent, bills and car: $370 p/w Current food: $100 After handover: Repayments at 7%: $511 p/w Bills and cars (we'll get another car once we move): $170 p/w Food: $100 p/w Calculated progress payments during completion stage: $466 per week + rent $250 = $706 Leaving us approx. $190 for bills, cars and food. So we won't be comfortable by any means during the build, but we'll manage. And we'll be fine after handover; everything like driveway, landscaping and fencing is included in the loan amount, so all we have to pay for after handover is security screens and curtains. Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Hello everyone Please advice me how can I install mesh security window or we cab say mesh flyscreen inside while the pvc plantation shutters are already installed? Is… 0 11605 go upvc window frames ensure insulation under colorbond. not just sarking, lighter color roof also not sure if you have seen this viewtopic.php?t=5823 last couple of pages… 4 110560 |