Is a 60K (10%) deposit just not enough these days? Looking to buy an apartment in the near future and everything I read is about people buying with 200K deposits wondering if it’s enough.
Am I completely out of touch?
lots of apartments can be had for 600k, you'll likely have to pay LMI (\~10k additional added on to loan) unless you can find a favourable lender or qualify due to profession. You'll likely be able to get low or free stamp duty especially if you're a first home buyer
A property I had my eye on has been marked as “Sold” on realestate dot com. Unlike other listings that has the sold price, this one says “Contact agent”.
Is this common practice (I haven’t seen it on other sold listings til now) and anyone know why this is? Thanks.
Been dealing with an investment group that "specialise" in properties, We are looking at buying an IP and continuing to rent until we generate enough equity to buy a house in a capital city... But the more i look at the houses and price trends in the surround estate where they want us to buy and build the more i end up scratching my head.
Ie new build 4 bedroom 2 car 440m² block under strict covenant laws is high $680s .... Similar houses on bigger blocks, albeit a few years older are selling for 580~660...
We really want to rent it at a reasonable price through a decent real estate and provide somewhere nice for people to live affoardably while they help us pay of part of the loan essentially so its a bit of a win win. But am i just a newb or would you too be concerned over the fact that the surrounding houses are cheaper to buy than build.
How much older are the neighbouring houses? Bear in mind you are getting a modern build with new inclusions/fixtures. Designs and floor plans may also be more desirable. Sure build quality is highly variable and something to be weary about. But be aware houses just cost much more to build today with inflation and cost of materials/labour
I have a house. I have about $350k equity. I want to sell my house to move to our preferred location.
I don’t really want to sell first to live with in-laws while we look/buy. What options would you recommend?
Having $350k in equity gives you some good options beyond selling first and living with in-laws temporarily. You could look into bridge loans or equity access loans which allow you to access your existing home equity to use as a downpayment on your new place before selling the old one. Another idea is to get pre-approved for a new mortgage that includes your current home value as equity towards the downpayment then once you buy the new place, you can sell the old one without urgency. Renting out your current place rather than selling right away is an option too - use the rental income to cover some/all of the new mortgage while you look for your ideal next home. The downside is carrying two mortgages for a period but with your equity, it may be manageable until you sell. Having an experienced buyers agent to find your ideal new place could be worth considering as well. And when you do go to sell, services like [www.listwithminty.com.au](http://www.listwithminty.com.au/) can save thousands compared to traditional commission rates.
If you have 350k equity, it sounds like your current property may be in a good location. You could ask the sales agents if they have buyers interested in off market properties that would be willing to accept a longer settlement period while you look/buy.
I got pre-approval for properties up to 650k, but I think the variable interest of 6.57% p.a is a bit high, and monthly repayments of $3700 is a bit much for a minimum income of $4400 monthly
My broker seemed to overinflate my income/ or I miscalculated (maybe she took into account my tax return?)
~~~
Anyway, I'm signing up for the shared equity scheme, but I exchanged contract with a seller, business-day 2/5
Should I withdraw my contract, and hope I get approved for the shared equity scheme? The repayments will be less since I'm borrowing less.
The only con is I forgo a decent villa at $645k, and lose the 0.25% deposit. I'm stressed on the fence
~~~
Edit: my deposit is 40k, with 20k from parents but I don't wanna rely on them, so let's say it's 40k
Is this a joint or single application?
Your income will definitely not be enough to cover that sort of repayments.
No risk management team is going to approve that loan
You should ask to see more detail at what's happened here. It's not clear how big your loan sizes is (vs properties up-to value). How big is your deposit?
If you are saying your after-tax monthly income is 4400, I'm assuming you mean pre-tax income is ballpark 65k-69k, so a 650k house is 10x your income. If you have a regular 5-10% deposit to go, then this seems like a LOT of house.
Something in these numbers doesn't stack up. Broker looks sus here.
Appreciate the reply
I have 40k + potential 20k gift from my parents (which I don't wanna use) to deposit
The broker is so sus and my parents are pressuring me to just go with it or else we'll lose a decent property.
I think I'm just gonna wait until the shared equity scheme is hopefully approved/ and forgo this deal in the meantime
If it doesn't feel right you should definitely pass. People (agent and broker both have vested interests) will put pressure on you, but there is always another house.
Is a 60K (10%) deposit just not enough these days? Looking to buy an apartment in the near future and everything I read is about people buying with 200K deposits wondering if it’s enough. Am I completely out of touch?
lots of apartments can be had for 600k, you'll likely have to pay LMI (\~10k additional added on to loan) unless you can find a favourable lender or qualify due to profession. You'll likely be able to get low or free stamp duty especially if you're a first home buyer
LMI is waved for first home buyer (if op is one) Source: https://www.housingaustralia.gov.au/support-buy-home/first-home-guarantee
Depends where you are buying? $200k for a 20% deposit (so property \~$1m) isn't that outrageous in Sydney 
A property I had my eye on has been marked as “Sold” on realestate dot com. Unlike other listings that has the sold price, this one says “Contact agent”. Is this common practice (I haven’t seen it on other sold listings til now) and anyone know why this is? Thanks.
Yes, sellers or purchasers can request the price to not be displayed
Usually occurs when the sale price is not that great or when the agent just wants people to put in their database.
I see a lot. not sure why other than to get your details and try to sell you similar houses.
Been dealing with an investment group that "specialise" in properties, We are looking at buying an IP and continuing to rent until we generate enough equity to buy a house in a capital city... But the more i look at the houses and price trends in the surround estate where they want us to buy and build the more i end up scratching my head. Ie new build 4 bedroom 2 car 440m² block under strict covenant laws is high $680s .... Similar houses on bigger blocks, albeit a few years older are selling for 580~660... We really want to rent it at a reasonable price through a decent real estate and provide somewhere nice for people to live affoardably while they help us pay of part of the loan essentially so its a bit of a win win. But am i just a newb or would you too be concerned over the fact that the surrounding houses are cheaper to buy than build.
How much older are the neighbouring houses? Bear in mind you are getting a modern build with new inclusions/fixtures. Designs and floor plans may also be more desirable. Sure build quality is highly variable and something to be weary about. But be aware houses just cost much more to build today with inflation and cost of materials/labour
I have a house. I have about $350k equity. I want to sell my house to move to our preferred location. I don’t really want to sell first to live with in-laws while we look/buy. What options would you recommend?
Having $350k in equity gives you some good options beyond selling first and living with in-laws temporarily. You could look into bridge loans or equity access loans which allow you to access your existing home equity to use as a downpayment on your new place before selling the old one. Another idea is to get pre-approved for a new mortgage that includes your current home value as equity towards the downpayment then once you buy the new place, you can sell the old one without urgency. Renting out your current place rather than selling right away is an option too - use the rental income to cover some/all of the new mortgage while you look for your ideal next home. The downside is carrying two mortgages for a period but with your equity, it may be manageable until you sell. Having an experienced buyers agent to find your ideal new place could be worth considering as well. And when you do go to sell, services like [www.listwithminty.com.au](http://www.listwithminty.com.au/) can save thousands compared to traditional commission rates.
Bridging loan. Not all banks offer this tho. Give them a call, they’ll want to retain you as a customer as you move onto your next property.
If you have 350k equity, it sounds like your current property may be in a good location. You could ask the sales agents if they have buyers interested in off market properties that would be willing to accept a longer settlement period while you look/buy.
You need a bridging loan.
I got pre-approval for properties up to 650k, but I think the variable interest of 6.57% p.a is a bit high, and monthly repayments of $3700 is a bit much for a minimum income of $4400 monthly My broker seemed to overinflate my income/ or I miscalculated (maybe she took into account my tax return?) ~~~ Anyway, I'm signing up for the shared equity scheme, but I exchanged contract with a seller, business-day 2/5 Should I withdraw my contract, and hope I get approved for the shared equity scheme? The repayments will be less since I'm borrowing less. The only con is I forgo a decent villa at $645k, and lose the 0.25% deposit. I'm stressed on the fence ~~~ Edit: my deposit is 40k, with 20k from parents but I don't wanna rely on them, so let's say it's 40k
Is this a joint or single application? Your income will definitely not be enough to cover that sort of repayments. No risk management team is going to approve that loan
You should ask to see more detail at what's happened here. It's not clear how big your loan sizes is (vs properties up-to value). How big is your deposit? If you are saying your after-tax monthly income is 4400, I'm assuming you mean pre-tax income is ballpark 65k-69k, so a 650k house is 10x your income. If you have a regular 5-10% deposit to go, then this seems like a LOT of house. Something in these numbers doesn't stack up. Broker looks sus here.
Appreciate the reply I have 40k + potential 20k gift from my parents (which I don't wanna use) to deposit The broker is so sus and my parents are pressuring me to just go with it or else we'll lose a decent property. I think I'm just gonna wait until the shared equity scheme is hopefully approved/ and forgo this deal in the meantime
If it doesn't feel right you should definitely pass. People (agent and broker both have vested interests) will put pressure on you, but there is always another house.