Superthread LXXII - Honouring The White, Off White, Cream & Beige. :-(

[MKEB...]

In NZ, our reserve bank has decided that banks cannot lend more than 80% to first home buyers. It stopped a lot of mortgagee sales later on down the track. Is this the case in Aussie?

 

[muzby]

In NZ, our reserve bank has decided that banks cannot lend more than 80% to first home buyers. It stopped a lot of mortgagee sales later on down the track. Is this the case in Aussie?

they have a wonderful* product here called "Lenders Mortgage Insurance" for anyone who has under the 80% (sometimes 90%) deposit..

this product, paid for by the person taking out the loan, usually in the multiple thousands of dollars (which, when added to the mortgage over 30 years turns in to tens of thousands of dollars..) protects the bank, in the instance the person can't pay their loan, the 'insurance' covers the bank..

the person taking out the loan still gets a default against their name.. but the bank doesn't lose out..



*wonderful for the bank

 

[MKEB...]

Aah, in we call that Income protection insurance. Though it does stop the black mark against your name.

 

[Scott Gourley's Lovechild]

I will be honest, I have no desire whatsoever to look for anything other than what I will live in. And as someone who has family with a rural town property, they can go months (even years) without a tenant. That does not seem an ideal outcome for me.

I am at a point that I want to use my money to finance where I live, not to pay off someone else's mortgage. I wont have too long either, as my brother has said he wants to return to the Inner West sooner rather than later, so renting where I am will not be feasible.

 

[whall15]

Hopefully for your sake the housing bubble bursts soon SGL.

 

[Eelementary]

f**king SGL - too good to live in a caravan park like Dean and all your Dragons mates, eh?

 

[Eelementary]

Have you tried the smaller lenders? I found Aussie and Mortgage Choice to be shit - their deals were awful.

I eventually got approved with CUA, but ME Bank was also keen.

 

[muzby]

I will be honest, I have no desire whatsoever to look for anything other than what I will live in. And as someone who has family with a rural town property, they can go months (even years) without a tenant. That does not seem an ideal outcome for me.

I am at a point that I want to use my money to finance where I live, not to pay off someone else's mortgage. I wont have too long either, as my brother has said he wants to return to the Inner West sooner rather than later, so renting where I am will not be feasible.

if you do your research and pick the right area, you'll be right..

look at unemployment figures, large industry / government sectors etc and a growing population..

i've got a couple of units in a country area, had them for nearly 2 years, and in that time i've had a grand total of 10 days vacancy across the two..

and i know how you feel - you want the security that comes from walking through the front door for the first time, knowing that 'it's yours' (well, technically you own the front door.. the bank owns the rest..)

but.. if you can't buy somewhere for yourself to live in, in an area that you want to live.. buying something for someone else to live in, in an area where you don't want to live, can be the next best thing...

 

[Scott Gourley's Lovechild]

Hopefully for your sake the housing bubble bursts soon SGL.

I hope so too, but Im not holding my breath. Heard that for many, many years from people "in the know".

Have you tried the smaller lenders? I found Aussie and Mortgage Choice to be shit - their deals were awful.

I eventually got approved with CUA, but ME Bank was also keen.

Turns out I lied. It wasn't ANZ, it was CUA with a max loan of $350k (incl. mortgage insurance) through Paradime.

 

[muzby]

bai bai Sydney!!

 

[Scott Gourley's Lovechild]

Yup, pretty much won't be able to afford here until I either get a partner who will chip in, or start earning over $70k.

So I had best start looking for a better paying job, because part 1 sure as shit isn't happening.

 

[muzby]

nah more I'm waving goodbye to you all as i depart this town..

 

[Scott Gourley's Lovechild]

Good, we don't want your Steeler loving filth around here anyway...

 

[Drew-Sta]

Don't give up hope of love, SGL ;-) Someone will come to understand the catch you are

And agree that getting a better job is always a step. Have you looked into Demand Planning roles?

 

[Scott Gourley's Lovechild]

Don't give up hope of love, SGL ;-) Someone will come to understand the catch you are

Mate, I turn 30 next month. That will also mark 10 years single. Pretty confident that's the lie of the land for the forseeable future. If it changes, cool, otherwise I am not going to be worked up about it.

And agree that getting a better job is always a step. Have you looked into Demand Planning roles?

I haven't to be honest, mainly sales with some business development and marketing. Wouldn't know what to look for with demand planning.

 

[muzby]

Wouldn't know what to look for with demand planning.

take the sales forecast. Minus 25%.

take the factory production schedule. Add 25%.

combine the two, minus inventory on hand...

and hey presto, you've just done drew's job..

 

[muzby]

so I'm sick of flying...

has anyone invented teleportation yet?

and on that vein, anyone read the Steven king short story 'the jaunt'?

 

[Different kind of Rabbit]

Oy SGL, your parents paid their place off? It might be possible to leverage some of their equity to help you buy a place.

If they've paid their place off and aren't planning on moving or borrowing against it themselves then it could be a good option for you. As long as they are happy to give you a leg up of course.

 

[muzby]

again with the handouts.. cue meltdown in 3.. 2.. 1..

 

[Scott Gourley's Lovechild]

Oy SGL, your parents paid their place off? It might be possible to leverage some of their equity to help you buy a place.

If they've paid their place off and aren't planning on moving or borrowing against it themselves then it could be a good option for you. As long as they are happy to give you a leg up of course.

Up until 4 weeks ago, that would have been the best option. Unfortunately, they just took out a mortgage as they needed to move and haven't been able to sell their old place. So they are now renting out the old place instead.

I still have 2 Grandparents who have a good amount of equity + zero debts, but not sure how much banks will back that in.