Buying a House - First Time Buyer

dragonfly090 on 27/01/2015 - 10:57

Hello Fellow Ozbargainers,

I am in midst of deciding to buy a property in Melbourne and inclined towards buying it in South East suburbs only.

I currently stay in Glen Iris with rent of 375 pw.

I am new to country (11 months in Australia) and have a sort of stable job paying 100k incl super.

32 yrs, 2 kids (6yrs daughter and 2 yrs son). Wife earns about 65 incl super. Both working in City.

With the above details, what is the recommendations? Should I go in for a Apartment, a unit or a house. I am looking at a budget of 500k including all formalities cost. I need at-least a 2 bed house.

Whats the proposition, whats the best deal i should consider and why?

I am also a first time home buyer. I have about 35-40k cash in savings with no other source of income to fund the down payments.

I do not know where to start and hence thought you guys would be able to help me with this.

Thanks

Home & Garden

Comments

  • tomleonhart on 27/01/2015 - 13:10

    "With the above details, what is the recommendations? Should I go in for a Apartment, a unit or a house. I am looking at a budget of 500k including all formalities cost. I need at-least a 2 bed house."

    First you ask if you should go for an Apartment, a unit or a house. Then you said you need a 2 beds house. Seem like you already made up your mind.

    • [Deactivated] on 27/01/2015 - 15:14

      By "2 beds house" I am guessing OP meant any type of living premise with at least two bedrooms.

      There is another thread on this site which talks about ways of getting finance with only 5% deposit. 35-40k cash doesn't sound like you have enough deposit for a 500k property.

  • shadowarrior on 27/01/2015 - 13:21
    +1

    • Are you a PR or Citizen? If yes, they you may be eligible for First Home Owner's grant of $10,000 from the government for a new construction and a rebate towards stamp duty. Check this website for more details:
      http://www.sro.vic.gov.au/ca25758c001d283e/LinkView/3F85F5AD…

    • You will need 20% deposit to avoid LMI.

    • If the bank says you need 5% deposit. There's more than 5% you really need.
      Add costs of solicitor fees, non-refundable builder's deposit for drawing up tests and plans, tax, rates, variations to contract, etc.

    • One of the biggest and most annoying thing where people get caught up is devaluation. If you go in with very tight figures with your deposit, you will not have any room to pay difference in devaluation. For example, after paying our 10% deposit recently, we also had to pay $20,000 extra on devaluation of our land. And bank will not count that into your loan's value/contribution.

    • Getting everything done via the builder's contract will often cost you a lot. Electrical connections is one of the examples. You are better off buying the fittings and talking to your electrician on-site for a install price during build after you get the basic battons via the contract.
      Driveway, fencing, lawn etc are others.

    • The first home owners grant is not counted in your contribution by the bank.

    • Use a broker. Will give you less sleepless nights.

    • Ask broker to get a valuation done without submitting the application with the bank, a lot of brokers can do that. This helps you in not getting a mark on your credit history.

    • Go over land and build contracts like a hawk. DO NOT rely on anyone, even solicitors to do the reading for you.

  • 2jzzzz on 27/01/2015 - 13:45
    -7

    Call Dannielle Jackson at Provincial Home Loans; 0432 705 600. She was my broker and was beyond wonderful. She also offers buyers advocacy and financial planning advice. Made my buying trouble free. She has a lot of experience in the SE suburbs as well.

    My advice, don't use a conveyancer, use a solicitor.

    Tell her Sam sent you.

Login or Join to leave a comment
Login Join