Would a financially inept nearly 50yo have a snowballs chance of getting a home loan?

Fredorishi on 04/02/2021 - 07:57

Genuine question although I'll have no qualms with being flamed.

Im an adult with adhd and if you know anything about late-diagnosed adhd you'll understand that plenty of us have the financial and planning sense of, well, a hyperactive 12 year old. I have literally zero clue when it comes to money, and even less about buying a house. Add in 3 kids, the first had at a young age, two ex wives, periods of poor mental and physical health and years of pissing money against a wall and yeah, well, my finances aren't flash.

I thought I would open it to the brains-trust before embarrassing myself further at a bank.

Long story short - as the title says. Nearly 50. Almost zero savings. But…. I have a stable (low) 6 figure job/income, no debts and a family member has said she will help me with a deposit and to go see a mortgage broker she knows. Realistically I would need 500k to get a scummy 2br unit where I want to live. The family member will give me 50k. I could cover payments of 2k/month pretty easily.

I mean, I'm assuming I would have Buckley's chance of getting a loan. There's a decent chance I'll be still working in 20, maybe even 25 years. But not 30.

Single word answers welcome. Dumb it down for me if you say anything more than "no".

Thanks for reading. 🙂

Financial

Comments

  • Quantumcat on 04/02/2021 - 08:03
    +4

    If you can move to a cheaper area (ie to a country town) so that the deposit is a larger proportion of the cost that would make it more likely. Also, you have to show genuine savings at the bank, being gifted 50k doesn't cut it. You'll have to have it in your account for a few months and show savings activity.

    • Fredorishi on 04/02/2021 - 08:12

      Yeah, that's kinda what I figured . Country isn't an option even though I'd love to go back where I grew up. I've basically worked my way back from nearly being in the gutter 3 years ago to a position of at least being stable. Have about 5k in the bank but I realise it may as well be zero. Have excellent credit history. Always paid off personal loans, paid rent on time blah blah blah blah, but figure I'm now just pissing in the wind instead of against a wall. :)

      • pndl on 04/02/2021 - 14:36

        Genuine savings isn't too big an issue. You just got to have it sitting in your account for 6months before you buy and usually only 5%. Some (not all) banks also consider rental history towards genuine savings, e.g. if you have 12 months rental payments shown by a rental ledger it can be considered as if you had saved that money.

  • isthatallyougot on 04/02/2021 - 08:14
    +14

    Mate , dont beat yourself up. The fact that you have a stable decent income paying job is great. If your family member is willing to stand gaurantee then you might have a better chance but your best bet is to have a chat with a mortgage broker and work out your options. I would second the option of finding a cheaper area and moving there if you really want to buy a house.

    • Fredorishi on 04/02/2021 - 08:22
      +1

      Thankyou. :) I mean, I guess it can't hurt to have a chat to someone. Not really beating myself up, but do carry a lot of shame/resentment/remorse etc about my finances. Especially since my 4 siblings are all varying degrees of loaded. I mean things are a LOT brighter now than they were 3-7 years ago. I always joke with my eldest daughter that I will be living in her basement once I retire, but I really don't want to put that burden on her. Buying a house wasn't anywhere on my radar until one of the aforementioned siblings mentioned the deposit completely out of the blue. Certainly can't hurt to ask a few questions I guess.

  • brendanm on 04/02/2021 - 08:25
    +1

    What habits have you changed to be able to go from having no savings to covering $2k a month easily?

    I would suggest buying somewhere that will.be less than 500k

    • Fredorishi on 04/02/2021 - 08:31

      I already pay close to that in rent. Circumstances have improved in the last few years, so gradually starting to put a bit away now that debts are paid off. Yeah, would love to go bush, but can't relocate work. Also detest long commutes and its a health hazard for me.

      • Slippery Fish on 04/02/2021 - 08:51
        +1

        Move to a less ideal area. If you can pay the loan in 15 years that will increase your chance then wanting to be paying into your old age.

    • Quantumcat on 04/02/2021 - 08:32
      +2

      Yeah I would be wondering that too, if you have only been able to save $5k that sounds like you spend all your money as you earn it

      • Fredorishi on 04/02/2021 - 08:46

        Asked and answered. :) But yeah, my spending habits probably still aren't the greatest either. Saving sucks and is boring. :p

        • Slippery Fish on 04/02/2021 - 08:53

          Start saving, I put double-triple in my offset as what I need to. My loan is down to 120k but have a good sum offset. Also adhd but money skills are learned skills. Put the effort in and you will get there.

        • soan papdi on 04/02/2021 - 09:27

          Saving sucks but a good way is to spend after you save. Ask your company if they can split your salary deposits into two accounts. You spend from one account only and adjust lifestyle to suit.

          • Fredorishi on 04/02/2021 - 09:47

            @soan papdi: Interesting concept. I have 2 accounts and usually direct transfer a bit as soon as pay hits. I mean, I was actually pretty good at saving between the ages of 16 and 20. Probs could have bought a house back then. "Decided" to have a baby and get married instead. Oh well.

            • soan papdi on 04/02/2021 - 09:52

              @Fredorishi: Talk to someone you trust but also you could consider putting some away in Super too, that way you can't touch it and it will grow over time.

              Also The Barefoot Investor might be helpful as well, see if you can borrow a copy from the library. It's a quick read and might give you some more ideas.

  • SmiTTy on 04/02/2021 - 08:31
    +6

    Sounds like you've gone through some rough times but cudos to you to getting to where you are now with a stable income

    Just want to say that whilst I think you could get a mortgage (your broker would help you navigate this) I would suggest you also get someone to help you with how to plan out your finances. You don't need to be a financially literate if you have a plan with specific actions. This will minimise the risk of missing payments due to mismanagement of funds

    For example only

    1) get paid
    2) put $x in mortgage repayments
    3) put $y in an exchange traded fund
    4) put $z in your own emergency fund
    5) put $a into daily living expense fund
    6) etc etc

    Good on you for being honest about your position, realising your problem, and having a desire for something better.

    • Fredorishi on 04/02/2021 - 08:38
      +3

      Yeah. I hear you and thankyou. The mere thought of actually trying to plan something fills me full of dread, but I really do need to have an idea of where im heading, house or not. Bills and debts ive always been fine with. Stupid as it sounds, I almost find it scary actually having a small amount of backup money in an account. Last time that was the case was 30 years ago! Pre kids and wives and alcoholism. :) Feels weird but starting to head in the right direction at least.

      • SmiTTy on 04/02/2021 - 08:49
        +1

        Remember, if it fills you with dread, don't feel like it's something YOU need to do. Find someone who is good with finances and you trust, and have them write out a plan for you.

        All the best :)

        • Fredorishi on 04/02/2021 - 09:51
          +1

          Good advice. We can't all be experts at everything i guess. Really just need to suck up the anxiety and go talk to someone. Cheers.

  • Pungentia on 04/02/2021 - 08:36

    Hey, I know when we have applied for loans to buy our home and investment property it was necessary to share expenditure information. So I would say get your finances together before you approach the bank for a loan.

    I would recommend looking at your expenditure and preparing a rough budget (maybe look at https://moneysmart.gov.au/budgeting/budget-planner) and reading something like the Barefoot Investor to start getting your finances on track. Once you've done that for about 6 months, you have a good track record you can show a bank for a loan application.

    How locked in are you to buying in that area? Maybe a little further out for an ok place would be a good compromise.

    Good luck! And don't beat yourself up :)

    • Fredorishi on 04/02/2021 - 08:43

      Thanks. Yeah. Have barefoot. But buying a house has always felt like a pipedream. Had to lay my finances bare during divorce settlement a couple years back so been there done that too. But yeah, at the end of the day, small steps i guess and some planning is much needed. I'm more locked in to staying in the area than to buying a house! But I probably need to explore that further too.

  • Quantumcat on 04/02/2021 - 08:39

    Another idea, if your children are young adults and not bought a house yet, or have but can afford to buy another one, could you buy a house with one of them as tenants in common (I think that's the term) and pay half the mortgage each? You can have in your will that your half gets divided amongst your children equally after you die (so the child that helps you will own 1/2+1/6=2/3 and can buy the others out at that stage). You can pay the child that helps you half the rent that the property would otherwise bring in, and pay half the rates bill each. That way you sort of get your own home (can hang picture hooks up etc) and the banks will be happy that someone young on a good income is on the mortgage.

    • Fredorishi on 04/02/2021 - 08:54

      My eldest is in a steady defacto relationship so that kinda complicates it. I'm happy to let them have their independence tbo. But not a bad idea. My other two are way off buying houses.

  • Donaldhump on 04/02/2021 - 08:46
    +1

    You need an exit strategy for when you retire, the big key here is what is your superannuation balance and will that support you after say 67 when realistically you stop work.

    Well done on reaching out;)

    • Fredorishi on 04/02/2021 - 09:01

      Im lucky to be in a job where working till 70+ isn't unrealistic, health permitting. But yeah, I definitely hear you. My super is complicated and yes, I absolutely need advice about that too. I also have a friend with a property who's promised me I could always buy a caravan and camp in her front yard if it comes to it. :)

  • toniyellow on 04/02/2021 - 08:57

    Have you ever owned property?

    If not, look at FHSSS
    https://www.ato.gov.au/individuals/super/withdrawing-and-usi…

    The biggest drawcard is to save you on tax.
    It is also hard for you to withdraw and spend impulsively.

    If you don't end up buying property, the more in super the better to pay for rent in retirement. It's a lot more tax efficient than a savings account.

    • Fredorishi on 04/02/2021 - 09:04

      No. I'll have a look. Thankyou.

  • pharkurnell on 04/02/2021 - 09:01
    +1

    Realistically I would need 500k to get a scummy 2br unit where I want to live.

    Change "where you want" to "where you can afford".. Chances of borrowing less will make life easier, even if you have to travel an extra 15 minutes.

    • Fredorishi on 04/02/2021 - 09:08

      I'm on the periphery already (outer east Melb) but yeah, you make a good point. I'm old and stubborn so being a bit more flexible would probably help. (Not that old, but definitely stubborn)

      • pharkurnell on 04/02/2021 - 09:43

        What area are you looking?

        • Fredorishi on 04/02/2021 - 10:05

          By "looking" i mean, I literally had a 10 minute look after my sister raised the idea yesterday. I'm currently in Mt Evelyn. Work in Lilydale, so would "like" somewhere around there. Out as far as Healesville or Warby would be more realistic although I would hate living there tbo. (Have rented in HV) Need to sit down and seriously weigh up my priorities too methinks.

  • ihbh on 04/02/2021 - 09:20
    +1

    Take a step back - why do you want to buy real estate?

    The alternative is to rent for the rest of your life.

    Studies show that owning a dwelling is very helpful in retirement as it is usually paid off by then and rental costs are onerous.

    However, the market is very overpriced at the moment. Are you disciplined enough to contribute regularly to an index share fund (shares also getting overpriced but you would dollar cost average - put in a regular amount, regularly over time, vs putting a big amount in real estate all at once)?

    • Fredorishi on 04/02/2021 - 09:30

      I definitely need to get some advice. If my knowledge of buying houses is zero, my knowledge of buying shares is -100. :) Having a permanent place to live rather than moving another 30 times is appealing. Having somewhere stable for my son for the next 5-10 years is appealing. If stuff gets taken out as soon as it hits my account, I'm usually pretty good. Otherwise hopelessly undisciplined.

      • ihbh on 04/02/2021 - 10:16

        my knowledge of buying shares

        You wouldn't be buying individual shares. You'd be buying a fund that owns a bit of "all" the shares in Australia, or another country, or the world. So say $1000 would be debited from your bank account each month and buy units or parts in the fund. And the funds would be charging very low fees - much lower than say an property manager's commission for managing an investment property.

        The only thing to know is that over the last 100 years, the total return from shares (dividends and capital gains) has been on average around 10% p.a. Obviously, it can vary considerably year on year, but say over 10-30 years, it will probably follow this longer term average return (although obviously the past is no guarantee of the future).

        • dcep on 04/02/2021 - 15:56
          +1

          he's in the 50s , i won't even recommend jumping into ETFs at market all time high

          • ihbh on 04/02/2021 - 16:38

            @dcep: I said dollar cost average. Instead of putting 500k in at the highs of the property market or equivalent share market, he'd put in say $1k a month.

            Obviously it would have been better, with hindsight, if he had started last year, but he needs to build the habit of investing regularly as soon as he can, rather than say wait until he's 60 or 70.

    • tsunamisurfer on 04/02/2021 - 17:43

      There is nothing wrong with renting for life, but it has to be coupled with saving / investing the difference at a better return than RE.

      OP blows it all on Hookers and Cocaine*

      -* Please replace Hookers and Cocaine with the appropriate desired products and services suitable for oneself.

      • ihbh on 04/02/2021 - 17:54

        There is nothing wrong with renting for life, but it has to be coupled with saving / investing the difference at a better return than RE

        Absolutely. The coupling with consistent saving/investing like paying off a mortgage is critical.

        That's why I asked about his discipline to make regular investments if he ends up renting for life. As a matter of fact, anyone who does it and avoids the overheated property market, will probably end up ahead, provided the make the regular investments in alternative assets.

        • tsunamisurfer on 04/02/2021 - 19:24

          I was always of the belief that renting is dead money.

          Then I had a financial advisor show me the numbers and I was shocked when the numbers stack up (based on certain economic criteria) in favour of renting.

          I still prefer ownership with early repayment because I like the certainty of ownership but rents can drop, prices can drop and share prices go up, so it can work in favour of the lifetime renter.

  • klonky on 04/02/2021 - 09:24
    +1

    Are you able to save money OP? You should try at the very least opening a bank account and practice depositing the cost of the repayments in to that account. If you cant fight the urge and you end up spending it, then I think that might give you a good answer.

    Also, do you find your spending habits occur in bulk periods or is it consistent? Reason I ask is if you have the right diagnosis because what your story sounds more like it could be a form of bipolar, in which case ADHD medication would absolutely be the wrong treatment.

    • Fredorishi on 04/02/2021 - 09:41

      Well, I certainly consistently spend a chunk of money on meds. :) And yeah, I do have a form of bipolar. Very perceptive. :) Anxiety, depression, chronic pain, sleep apnoea, insomnia, crap teeth, blah blah blah. I seem to have most of the common comorbidities plus a few extras. Not to mention the self-destructive tendencies that hang around. I still somehow manage to function as a reasonably productive member of society though.

  • frondono on 04/02/2021 - 09:29
    +1

    Saw something about a 5% deposit this morning. might be worth a read.

    https://au.finance.yahoo.com/news/1800-first-home-buyers-get…

    • Fredorishi on 04/02/2021 - 09:32

      It appears i would qualify. Thanks for the heads up.

  • whooah1979 on 04/02/2021 - 09:42
    +1

    Investing in real estate is overrated. High capital upfront, high maintenance costs, low gains, illiquid, massive counterparty risk (if it's an IP) and too many taxes.

    • Fredorishi on 04/02/2021 - 09:52
      +1

      Fair enough, but I'm not thinking about doing it to get rich, I just like the idea of somewhere permanent to.live.

      • Nereosis on 15/02/2021 - 16:28

        That's totally fair in my opinion.

        If you can work out to pay it off as soon as possible then it would be worth it.

        That said 500k is quite a lot of money. My partner and I earn about 160k a year (pre-tax) and a 500k loan seemed out of reach for us.
        We were lucky to get a house under 400k in a rural town that had everything we wanted.

        Can you do your work remotely at all?

    • Nereosis on 15/02/2021 - 16:26

      Unless you want to own your own house because you want to own your own house then it's worth it.
      I would hate to have to go back to renting; I'm enjoying making my new home my house the way I want it.

  • [Deactivated] on 04/02/2021 - 09:48
    +1

    $2K a month won't pay that amount off at a late age. It will need to be more.

  • 2jzzzz on 04/02/2021 - 10:22

    Why do you want to own, renting seems a good option with your income.

    • Nereosis on 15/02/2021 - 16:27

      6 figure income means renting is a good option? I don't get the relation?

  • dasher86 on 04/02/2021 - 10:48
    +1

    It might be difficult to do but i would suggest reading the barefoot investor.
    some basic financial strategies in there that might give you a better understanding.

  • garetz on 04/02/2021 - 11:19

    adhd does not make you financially illiterate, it makes it difficult to learn new things.

    you cant blame adhd for your financial woes. I know others with adhd who are wealthy. It just means you need to put in more mental effort than normally most people do.

    • Fredorishi on 04/02/2021 - 21:43

      I'm not blaming it at all. It's just a factor like the several other things I mentioned and more. It can make it more difficult to learn new things that aren't interesting. I find discussions about money pretty boring mostly. I'm not really driven by making money or all that passionate about it.

  • avoidfullprice on 04/02/2021 - 11:48
    +2

    There is value to see a broker for free, to get a one on one understanding of your financial position, such as how much cashflow you will have to service the loan and what is the realistic loan term banks will offer. A job that allow you work up to 70 doesn't mean bank will offer you a 20 year loan.

    3 months of consistent saving record is important. That is while you rent too. Try to show you are not living paycheck to paycheck, and not in financial stress.

    Understand what your borrow power is from the broker. If you are comfortable you can use online mortgage borrowing calculator to get an estimate. I used the Westpac calculator for example, that if you can cover 2k/mth repayment, with 50k deposit, over 20 years and have a mortgage at 2.8% interest rate, it is possible to get up to say 400k property. So it is not impossible, but I suggest you speak to a free broker to get an understanding (not financial advice) of your circumstances..

    I would ask the broker not do a credit check on you just yet. That is, don't apply for a loan just yet. Thats more important than being embarassed in front of a bank as it will be on record.

    Lastly, once you own a home (say a house for simplicity) you still have ongoing cost in addition to mortgage. Home insurance, council rates, utilities, pest control, repairs and upgrade etc. You will need to factor that in as essential expenses, like for your medication and food.

    Good luck, mate. You are a worthy individual.

    • Fredorishi on 04/02/2021 - 21:50

      Thankyou. And yes, I've also thought about the extra costs. What sort of broker works for free? I have excellent credit so don't think that would be an issue. If I want to be realistic about it, I definitely have to aim smaller. Its probably not impossible, its just becoming clearer that it wouldn't be worthwhile.

      • avoidfullprice on 05/02/2021 - 10:25
        +1

        Well some broker charges the client nothing and earns money from commission from the loan. But for loan to be successful they run the numbers with you before applying for the loan. That is what I'm suggest you to do with broker, to get an understanding of your position, avoid that embarassment.

        They won't give you advice on what you should do thou. that's up to you to decide.

  • tsunamisurfer on 04/02/2021 - 12:35

    OP for your long term financial security you should have a home of your own.

    You don't want to retire at 60-65 with no savings and no home requiring you to rent for the rest of your life with reduced income.

    However the bank is going to look at your situation a bit more carefully because you are 50 and about to take on a 25 year commitment.

    They will not assume you can work to 70 even if you think you can, even if you swear black and blue they will not take that into account.

    That plus your savings history is poor.

    Your super is your saving grace, how much is in there?

  • Bjingo on 04/02/2021 - 12:47

    For my own curiosity how old were you when you were diagnosed with ADHD and what meds do they have you on? (I was also diagnosed late, 24 and im on 40mg of D5s currently)

    Also ADHD makes tasks like this really hard, the lack of impulse control can be absolutely crippling with things like this, I find the best way for me to save is to take the control out of my hands, set up an account with no internet banking and have an automatic transfer that matches your pay cycle putting away an amount you feel would be manageable. Removing the ability to use the money on impulse allows you time to actually put thought into whatever you intended to use it for, maybe you don't actually need this new TV that's on special.

    • Quantumcat on 04/02/2021 - 13:29

      How did you get diagnosed?

      • Bjingo on 04/02/2021 - 13:39
        +1

        My circumstances were a little odd, it had been pretty obvious for most my life and people had regularly mentioned to me I should be tested and that there's a good chance I have it, but one of my parents is really bad when it comes to medicine and whatnot ie anti-vax, dislikes anti-biotics, doesn't believe in ADHD, etc and my other parent is very lazy so I was never tested eventually my little brother pushed for testing under recommendation from teachers and was diagnosed with it + it turns out my older brother was diagnosed ages ago and parent A never let him take medication and parent B was too lazy to speak up (it is impacted by genetics, ie if one of your parents has bipolar or ADHD it increases your chances of having it).

        I intended to get tested for years but kept procrastinating it until my boss called me in and said they had identified attention issues and wanted to know what was up, then I got a referral from my GP and booked an appointment with a psychiatrist who specialises in ADHD and got tested, they read through all your old school reports and go through a line of questioning and then he confirmed I have ADHD and prescribed the meds.

        Context was likely not needed here but could have useful info.

    • Fredorishi on 04/02/2021 - 21:57

      I was diagnosed st 36 after what now is a crystal clear pattern of behaviours that go all the way back to my primary school days. I still have the reports from then to prove it. Ive tried pretty much every med there is. Ive not had huge amounts of success with meds. They're certainly not an immediate fix.for a lot of people. This is the first time in my life I have my finances relatively under control since I was a teenager. Better late than never I guess.

      • Bjingo on 04/02/2021 - 22:47

        That is on the late side but it's good you got it done. Yeah the medication doesn't work for everyone and unfortunately there is no immediate fix. identifying the issue is huge on it's own and means you can try keep it under wraps. It's great you've gotten to a point where they are under control, some people never get to that in their lifetime. Just keep pushing on with it all and finding what works best for you to manage it and it will only get better.

      • kiitos on 06/02/2021 - 22:21

        What were the signs of it for you? Do you have any strategies you use to try to get on top of it?

  • Cluster on 04/02/2021 - 13:23
    +1

    See a home loan broker for help.

    A key problem you'll run into is that clearly you can't get a standard 30 year home loan, so the repayments will be much higher than usual. Banks assume that no one works past the age of 70.

  • netjock on 04/02/2021 - 13:24

    Simple math. $500k property, $400k loan over 20 years. Can you make it?

    You need to put the monthly mortgage payments aside into a second account and never think of it as available. It is a marathon a mortgage. If you want to go broke then yes it can be a quick sprint.

    • tsunamisurfer on 04/02/2021 - 15:05

      I say no…plus we are at historical interest rate lows….over the next 20 years you could see it returning somewhat back to the mean.

      Not 6% maybe back to 5%.

      • netjock on 04/02/2021 - 15:43
        +1

        Going back to 5% plenty of people will go bankrupt along the way. You need to look through the lens of how many people have locked in 30 year mortgages expecting 3% interest rates. Any movement on rates will be met with a stock market melt down that central banks will back off immediately.

        You might want to have a look at history of interest rates

        Period of prolonged low interest rates have not been uncommon. 8%+ interest rates have been more seldom than you think, because high interest rates are in response to exceptional growth rates because central banks have been too late to act.

        Plus if OP targets for 20 years at current repayments and pays it like it is 6% interest rates would pay it off a lot sooner.

        • tsunamisurfer on 04/02/2021 - 17:17
          -1

          You need to look through the lens of how many people have locked in 30 year mortgages expecting 3% interest rates.

          Whilst I believe the Reserve has largely lost effectiveness with the use of monetary policy, the movement back upwards is more probable than not.

          But if people are signing on with the assumption that over the 25 - 30 years it will stay at 3% that is extremely irresponsible.

          • netjock on 04/02/2021 - 22:50

            @tsunamisurfer:

            Whilst I believe the Reserve has largely lost effectiveness with the use of monetary policy, the movement back upwards is more probable than not.

            You know how central banks got caught out in all developed economies?

            1. Globalisation: labour cost arbitrage. China basically exported not just products but deflation. Everything got cheaper and CPI is depressed. A lot of people in economy without jobs and increased competitions for what is left, wage growth isn't that great. Progressively people will be fully tapped out and lack of credit worthy borrowers. Basically "The big short".

            2. Interest rate: dropping rates gets progressively less useful. Central banks basically only has this lever. Problem actually sits within governments. Low taxing political parties in power means less money to go into worthwhile industries. Notice how US lost the race to 5G to Chinese companies (potential spying can be a problem) and wants to chuck a fit.

            But if people are signing on with the assumption that over the 25 - 30 years it will stay at 3% that is extremely irresponsible.

            True but people have short memories. They worry about whether they can afford it now and how much is the bank willing to lend. Not what would happen if interest rates double.

            The trick is to take enough risk but don't be the first few tranches to fall before the government comes to bail you out. Good example is Lehmans went, then Bear Sterns got pushed into arms of JP Morgan, Merrill Lynch into Bank of America then took down BoA and government had to step in with bail out. Don't be Lehmans or Bear you need to be able to hold out like BoA.

      • whooah1979 on 04/02/2021 - 17:34

        MMT loves QE and low-interest rates. We can expect this to continue until the world has a new reserve currency that can't be inflated by governments.

  • avoidfullprice on 04/02/2021 - 13:44
    +3

    Can be a bit off topic - a caravan lifestyle after retirement is not unheard of. Perhaps a lower budget goal as well. If your eldest doesn't mind you park your caravan there every now and then to visit. Travel around a bit, balance with your condition and do up to what you can manage. You have options for your future ;)

    • Fredorishi on 04/02/2021 - 22:02

      I certainly don't think its a completely lost cause! I'm certainly better at parenting than at finances, so at least my kids won't completely disown me! I don't think I'll end up under a bridge.. I'm definitely well overdue for some planning though.

  • Grunntt on 05/02/2021 - 08:33

    You mentioned earlier that you have not previously owned property so it will be worth your while to look into the First Home Owners Grant (I think that's the title) as it gives you a direct $10,000 (?) as well as reduced Stamp Duty.

    • Nereosis on 15/02/2021 - 16:35

      Pretty sure the First Home Owners Grant only applies to new builds but if you buy an existing property you don't have to pay Stamp Duty.

      When I bought my house my partner and I got into a different First home owners grant thing that had very few placements and we paid 5% deposit, no LMI, no stampduty, and we probably saved about 60k upfront costs.

      Yes, I know a 5% deposit is not the best idea as your loan will be larger and you pay interest but the rental and property market exploded less than a month after we bought and now rentals in my town are 25-50% more expensive than they were before and house prices have risen close to 50k more.

  • Waltervp on 05/02/2021 - 08:36
    +1

    Now is not a great time to buy… normally developers are very keen to help you get finance to buy one of their of the plan homes in new suburbs or developments, they also have mortgage brokers and know every trick in the book to help you get a mortgage. I think you'll get it. I got one like that in the 80s. But different days they were.

    I was in your situation 5 years ago with no job. Brother lend me deposit and a friend and me bought a piece of land together with view of building two homes. The other friend was employed and had no trouble getting mortgage for land and later finance for building. Both our names were on titles and mortgage, I was clearly just an appendage, token signature.. but once we had homes build and strata titled the block the bank was able to split the mortgage and I ended up with my own home and mortgage… a close miracle. It isn't easy to find situations like that, but now I am a home-owner on disability support and aged 55. With very low mortgage rates and security of not needing to move when landlords flick a finger. I am very lucky.

  • Showmethebargains on 05/02/2021 - 09:20

    There are plenty of townhouses/units/apartments and even a few houses around the $500,000 mark in Mooroolbark, Coldstream, Woori Yallock, Croydon, Millvrove etc. All of those areas are an easy commute to Lilydale. So, if you can get a loan, there are a lot of options for you.
    Best of luck to you. Really hope it all works out for you.

  • OzHunterNSW on 05/02/2021 - 10:31

    You are going to plead with a bank manager to give you money…. but what do you bring to the table?
    I suggest you keep this as a dream - a goal to strive for.
    Save more than enough for a deposit — it is easier than people think. 1k a month should be fine.
    Then you plead with the bank manager and show your steady work, your diligent saving, etc.

    Don't listen to silly talk of moving to the back of Burke… you have a job in a specific area, you need to live relatively close to that steam of income.

    Yes you can…. repeat to yourself

    • whooah1979 on 06/02/2021 - 08:16

      OP has a six-figure job and no debt. They're already living the dream. A mortgage is a liability and may fubar that dream.

      They could statistically be in a better financial position by the time they retire if they DCA $2000 p/m in other markets.

  • tabitha731 on 05/02/2021 - 10:44

    Not meaning to sound condescending or judgemental, but I'm nearing 50 and I'm a really good financial situation, no debt, and good financial records and own my own home, yet I still can't get an immediate Pre-approval for a home loan… So if it's hard for me.. It will most likely be close to impossible for u.

  • bargain seekerOz on 05/02/2021 - 11:03
    -2

    the most likely way you would get a loan is to tell the bank you are buying it as an investment property, so that they can count the theoretical rent you would be getting as income to cover the mortgage payments. You would need to say that you will be living rent free with family, the most proof they would need is someone to write a letter for you confirming this.
    Then 6-12 months down the track refinance your loan to be on a lower owner occupied interest rate

    • dp1 on 06/02/2021 - 16:51

      Otherwise known as "fraud"

  • Bob Svargis on 05/02/2021 - 14:13
    +1

    Don't beat yourself up mate. You're self-sufficient and not a burden on anyone, plus you have a roof over your head and the necessities in life. It means you're better off than about 80% of the world's population!

    Have you considered an investment property (or maybe two in future) in an area you might want to retire in one day? Rather than some crappy dogbox in a city?

    Another option is to buy an apartment and rent it out to a mate, then rent out his/her apartment to live in.

  • johndowy on 17/02/2021 - 11:23

    Just FYI, you can still take out a 30 year loan even if you were hypothetically 60 years old.

    If, you can still prove income, and have an exit strategy to pay off the loan.

    Just because you might not be working for the next 30 years does not mean that you can only take out a loan for the remaining number of years you have left to work.

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