All Topics / Hotch Potch / hubby say “Can’t …can’t…can’t”

Viewing 20 posts - 1 through 20 (of 21 total)
  • Profile photo of AafreenAafreen
    Participant
    @aafreen
    Join Date: 2003
    Post Count: 22

    We spoke to a mortage broker and a bank and both said we can not qualify for a home loan. First because we do not have a deposit (we had 35K last year then blew it all away on a world tour last feb[:(]). Second because hubby is self employed and im a stay at home mum (2 kids).Then they said if we come up with 10% deposit, we won’t have any problems.

    now, hubby thinks the only way to buy our home (or IP) is to wait for 12 months and try to save.
    i disagree with him, i have read (little) about wrap, lease option 2nd mortgae ect, and tried to tell him there are other ways but he says “there are no such things, why would the vendor wanna do that etc, etc.” My problem is, i have not fully grasp the idea of these alternative financing thus i am unable to explain to him fully. and he is not willing to read! other thing is, i have not worked out ( in numbers) whether it will be better to wait and save or better to get wrapped ? i know we pay higher IR in wrap, but wont renting while trying to save cost us more ?
    what about the timing ? if we wait for another year, what will be the prices then? our earnings don’t increase as fast as house prices. what about property price crash ? how does that happen ? is it better we wait for IR increase maybe prices will go down but that means our repayments are higher coz the cost of borrowing is more ? i think i need a financial adviser.

    Forgive my ignorance, i don’t expect to be spoon fed. as a matter of fact, i am trying to learn and educate myself as much as i can. even with full resistance from hubby, I am halfway thru steve’s book, have read lots of the posts in this site, went to some free wealth creation seminar, almost signed up for a “15K mentoring program”, drove 6-8 hours away from Melbourne(with 2 kids) to get a feel of the area and check out listings of different real estate agents. But after all these, i still couldn’t put the pieces of the real estate puzzle together….i still have a lot to learn and i would appreciate any help.

    *looks like this post suits more in the soap box

    thanks,
    aafreen

    Profile photo of BillfromozBillfromoz
    Participant
    @billfromoz
    Join Date: 2003
    Post Count: 381

    Hello nightowl…

    It will be difficult if your husband won’t even read a book. Hope you had a good o’seas trip anyway.

    Yes…it is possible to own your own home. Tell your other half that people with integrity and the skill can create a deal that will be equal to the rent your paying. Both parties…the wrapper and you the wrappee WIN out.

    It can be done by considering part of your rent, initially,as part of the deposit you will need.
    Don’t pay $15k for a mentor. I do it Free.

    Some will argue that you get what you pay for…but I have had 30+ years experience in Real Estate and Finance.

    If you would like my help…please reply to my email and I will do my best to answer your questions by email, just like I do for more than 150 other people on this Forum.

    My email address

    [email protected]

    I’ll let you get back to your book.
    When do you get to sleep?

    Billfromoz

    Profile photo of AafreenAafreen
    Participant
    @aafreen
    Join Date: 2003
    Post Count: 22

    Billfromoz,

    thank you, thank you for your reply ! all i hoped for was a single response ( my previous posts didn’t get any) and i was excited when i saw it came from you. i’ve read some of your posts and always admired whatever you have to say.

    i’ll send you an email.

    btw, i get my best sleep around 10-11am when my 10month old takes a nap and my 4 year old is at kinder. night/dawn is the best time i have to read the forum posts and/or steve’s books while hubby and the kids are sleeping soundly :)

    cheers,
    aafreen

    Profile photo of craigccraigc
    Participant
    @craigc
    Join Date: 2003
    Post Count: 29

    Hi AaFreen
    Please never use the word can’t. I do not believe in the word, you can allways find a way to do almost anything if you just keep looking & keep focused on your goals. You may not get what you want tomorrow but if you keep at it you will get there.[8D]
    good luck
    craigc

    Profile photo of KristineKristine
    Member
    @kristine
    Join Date: 2003
    Post Count: 100

    my partner doesnt read either that aint a problem you have to educate yourself more and then tell him …its good cause it opens your communication up….Ummmm the book says to rent and buy a investment and rent that out.So i would follow the gurus advice personally (Steve)

    Profile photo of venturaventura
    Member
    @ventura
    Join Date: 2003
    Post Count: 7

    Hi Aafreen

    Try St George banks 100% loan scheme.

    cheers!
    aiyaaz

    Profile photo of DevoDevo
    Member
    @devo
    Join Date: 2003
    Post Count: 28

    Aafreen

    It spounds like a wrap would be ideal for your situation! One of the pivotal points in ensuring a wrap works is to find a property that, once the sums are crunched and the repayments are etsablished, that the repayments equate to roughly what you would be paying in rent anyway. You make a valid point re: renting now & saving for 12mths vs getting in now and enjoying hopefully some tax free captial gain.

    As for IR, our current economic climate is still firing away as good as its ever been. Unemployment is down which should have meant IR would only move one way but now with the $AUD going so well, rates will remain on hold for little longer yet. I’m no economist and I have only studied economics briefly at uni so this is purely my opinion but one observation that can be made about the economy is that there is always a time lag when economic policy is implemented. There has to be, there’s 9.34mil of us working so it takes a little time to pick up the beat[;)] So what I mean by the above is whenever a montery policy e.g. change of interest rates by RBA etc or fiscal policy change e.g. increase/decrease in taxes or gov. spending etc, there is always a time lag that preceeds the desired affect on the economic climate – and that lag can range in time to varyaing degrees depending on the affects the policy is trying to achieve and the time it takes for the market to react and reflect that policy change. My point here is at the moment, things still look ok and many commentators have suggested that it will remain that way for a little longer yet (BTW commentators don’t really know either but have spent a bit of time observing but I bet they can’t tell you when a war is going to be or a size 8 earth quake through China etc). If things do change, you have the added bonus of the time lag before the full effect takes affect. However, there is no point in knowing there is lag if you are not astute enough to use it to your advantage. By that I mean, you need to read the papers, listen to those boring statements on the economy and subsequent policy changes so you can implement exit or entry strategies if deemed appropriate.

    The down side is if IR start to move while being in your own place, as you stated below, repayments rising while prices drop is a real possibility. You may be forking out more and your house value stagnates!

    However on the other side of the coin, this could be used to your advantage. A year worth of savings, interest rates rise, house prices correct and you could walk into a house that you could’ve only dreamt of owning 12months prior. I think there is little doubt that there are home owners out there that crunched there no.s to the last dollar so they could get in but will find they have over extended themselves. Also, should you decide to wait, another consideration is the ongoings of owning a house would be suspended for that time thus adding to your kitty for a bigger deposit.

    I don’t think I’m alone here when I say “please bubble, hurry up and burst!” I think there might be a few of us circling at the moment.[:D]

    I hope this has been a help. [:)]

    Cheers
    Steve

    There’s a few points

    quote:


    We spoke to a mortage broker and a bank and both said we can not qualify for a home loan. First because we do not have a deposit (we had 35K last year then blew it all away on a world tour last feb[:(]). Second because hubby is self employed and im a stay at home mum (2 kids).Then they said if we come up with 10% deposit, we won’t have any problems.

    now, hubby thinks the only way to buy our home (or IP) is to wait for 12 months and try to save.
    i disagree with him, i have read (little) about wrap, lease option 2nd mortgae ect, and tried to tell him there are other ways but he says “there are no such things, why would the vendor wanna do that etc, etc.” My problem is, i have not fully grasp the idea of these alternative financing thus i am unable to explain to him fully. and he is not willing to read! other thing is, i have not worked out ( in numbers) whether it will be better to wait and save or better to get wrapped ? i know we pay higher IR in wrap, but wont renting while trying to save cost us more ?
    what about the timing ? if we wait for another year, what will be the prices then? our earnings don’t increase as fast as house prices. what about property price crash ? how does that happen ? is it better we wait for IR increase maybe prices will go down but that means our repayments are higher coz the cost of borrowing is more ? i think i need a financial adviser.

    Forgive my ignorance, i don’t expect to be spoon fed. as a matter of fact, i am trying to learn and educate myself as much as i can. even with full resistance from hubby, I am halfway thru steve’s book, have read lots of the posts in this site, went to some free wealth creation seminar, almost signed up for a “15K mentoring program”, drove 6-8 hours away from Melbourne(with 2 kids) to get a feel of the area and check out listings of different real estate agents. But after all these, i still couldn’t put the pieces of the real estate puzzle together….i still have a lot to learn and i would appreciate any help.

    *looks like this post suits more in the soap box

    thanks,
    aafreen


    Profile photo of lozza123lozza123
    Member
    @lozza123
    Join Date: 2003
    Post Count: 81

    Just a little suggestion that might help….. My hubby is not into reading investment books either. He’s also not into talking about financial stuff all the time…

    But I find that getting him to listen to a tape in the car (or a CD at home) has a much greater impact on him, and it sinks in a lot better than me trying to explain the concepts. I have also dragged him along to some seminars with Dolf de Roos and Rick Otton. He normally comes out pretty inspired. Maybe it’s just a guy thing (liking audio-visual stuff better), but he would rather have something demonstrated to him than have to read the manual!!

    [:)]

    Profile photo of AafreenAafreen
    Participant
    @aafreen
    Join Date: 2003
    Post Count: 22

    HI everyone,

    thank you for all your responses and encouragement.now, i feel like a “real” member of the forum, rather than just a mere observer[:0)]

    i went thru the papers but i didn’t notice any ads for wraps except for some country land. anybody in this forum offering wrap services ? or i’ll call the real estate agents and ask ?

    steve, i appreciate that bit of economics “lecturing” u gave me:) i’m going to go grab an econ book from the library and try to dig it! it’s important for me to understand how EX , IR etc relate to each other, no matter how boring they are(for now). Hoping it will turn into an exciting area to study specially when i start making money[:P]

    aiyaaz, tried St george but were told this 100% finance does not apply to self employed applicants.

    im not saying im gonna go do wrap for sure. i just want study the option closely and see if it fits us best.

    aww my 10month old is up again, gotta go !

    Profile photo of DevoDevo
    Member
    @devo
    Join Date: 2003
    Post Count: 28

    Aafreen

    Where are you based?

    Steve

    anybody in this forum offering wrap services ?

    Profile photo of AafreenAafreen
    Participant
    @aafreen
    Join Date: 2003
    Post Count: 22

    Steve,

    melbourne

    Profile photo of VaslavVaslav
    Member
    @vaslav
    Join Date: 2003
    Post Count: 86

    quote:


    Steve,

    melbourne


    Hey Aafreen,

    try WestBank, they might be able to help. i’m based in Melbourne too, also currently going thru loan options.

    Kevin

    Profile photo of FWFW
    Member
    @fw
    Join Date: 2002
    Post Count: 478

    hi Aafreen
    Melbourne is a big place!
    Do you have a specific area within Melbourne you would like to buy? Some wrappers (me included) buy houses and then find the wrap buyer afterwards, so you may find that if you mention a more specific area, someone like me might say, hey, I’ve got a house available there, and so be able to give you some more accurate numbers to think about.

    Keep smiling
    Felicity 8-)

    Profile photo of MiniMogulMiniMogul
    Participant
    @minimogul
    Join Date: 2002
    Post Count: 1,414

    Hi Aafreen,

    good on you for learning all about it. I was clueless a year ago and I did some seminars and read lots of books and listened to tape sets…spent a fortune! My boyfriend thought I was spending too much on education at the time! Now that I’ve bought three IPs and can explain the numbers to any one he totally gets it and it makes sense. But before I had done it, my BF was my first critic. But it’s such a help to have early critics in the long run.

    Luckily I didn’t need to ask my BF’s permission to invest and I had my own money etc, but I can imagine it would be hard if you want to do something with your partner but they’re resisting. I don’t think you need a financial advisor for the moment. A lot of them are employees and take your money and lose it for you. Rather than advising you on what might be a lot better – they don’t know about it, otherwise, they wouldn’t be working as a financial advisor in a JOB. Seriously, most of them are sales agents for various investments. Like a mortgage broker in reverse.

    whoops gotta dash – finish this later

    cheers-
    Mini

    Profile photo of brent2brent2
    Participant
    @brent2
    Join Date: 2003
    Post Count: 62

    Hi there, only new here but heres my two cents worth.

    Are people aware that the Reserve Bank of Australia is 49% owned by J.D? Rockefeller, and it is up to him when the rates go up? Or so I have been told anyway. And it is not only “Australia’s” Bank that is privately owned, it is 80% of the worlds reserve Banks.

    Can anyone confirm/ reject this piece of information?

    Regards,

    Brent

    Profile photo of diclemdiclem
    Member
    @diclem
    Join Date: 2003
    Post Count: 537

    Hi Brent,
    I don’t know if it is true, however I don’t think that a 49% ownership can give you the power to make that large a decision on your own (Without a vote)
    I always though you had to own 51% to have total say on decisions.
    Does anyone know for sure?
    Keep smiling
    Sue [:)]

    Be careful not step on the flowers when you’re looking at the stars

    Profile photo of AafreenAafreen
    Participant
    @aafreen
    Join Date: 2003
    Post Count: 22

    HI Mini,

    im amazed to know you were clueless just “a year ago”. from your previous posts, i’ve always assumed you must have been in this real estate game for at least 8 years ( just the impression that i got). thanks for encouraging. btw, did you take any real estate courses, do you think it’s worth doing it ?

    felicity, im based southeast melbourne. i’d be interested in any of these areas, caulfield, carnegie, murrumbeena, bentleigh or nearby areas.

    if you have houses in these areas (or others, i might be interested) please email me at [email protected]

    cheers,
    aafreen

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733

    Aafreen..

    If you could save that much for a world trip ‘surely’ you have a good savings record with your bank..?
    approach them first, giving them first option and letting them know that point [;)]

    then get onto the mortgage brokers, the more time you spend with the people in that industry, the more you’ll learn, and they make an earn of ‘your’ business so it’s in thier intrest to help you and point you in the right direction, it’s free learning, it’s coffee and a chat when your bored and who knows.. you might get what you want.. there’s a ‘plethora'[:O] of them out there.

    i knew a lady who used to get carpet, curtain,pelmet, tilers,painters over to her place and even go to car yards and take vehicles for a test drive… she was bored and they were free company for her, if they sold her on the idea or after advice from 6-7 different reps she was better educated to make a decision and go with it

    just some thoughts [;)]
    redwing

    “The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”

    Profile photo of AafreenAafreen
    Participant
    @aafreen
    Join Date: 2003
    Post Count: 22

    redwing,

    we actually intended that savings for a deposit, then i don’t exactly remember (or refuse to remember!)how we ended up using it for the trip which was great, visited 7 countries but wish had postponed it. but yes, we do have some good record with the bank and have been with them for years now. we have good credit rating as well, always on time or advance in paying bills, rent etc. the thing is, we now have 2 kids and we just find it a lot harder to save, and with the way we are going, it’s gonna take at least a year or so for us to save a decent amount for the deposit. but yes, we should approach our bank. funny, we considered banks suggested by the mortgage brokers we spoke to, and never really thought about the bank with been dealing with for years. :)

    aafreen

    Profile photo of MishmakMishmak
    Member
    @mishmak
    Join Date: 2003
    Post Count: 1

    Hi Everyone,

    I’m new to this forum, but Aafreen’s post has inspired me to write something too. My husband and I are both interesting in investing although it wasn’t always that way. I read, researched and collected info for anout 3 years before I finanlly said ‘prove me wrong then’. After that we continued to rent and purchased to slightly negatively geared properties. Then we bought somewhere for us to live too. Now however we’ve come to a screeching halt, with three morgages and me leaving work to have our first child. I would love to know where the postive cashflow can be found and how do we can keep buying on one income. I also want to hear what you decide in the end, Aafreen.

    Cheers,
    Mishmak

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