Hi All. Been reading this site for awhile now and find it great for information and even some entertainment
.The last 2 weeks I’ve been looking at moving into another rental property. Along the way I found an absolute dream house for myself however I have no deposit. I do have a few cars i could sell to pull in a roughly 10 – 13 g’s. the house is 255k
Details about me
Been in my current job just over a year – 50k
3 years previous experience in field.
0 savings
good record paying off personal loan (aAlthough doesn’t mean jack when applying for a house)Is there any chance for me now, should i speak to a broker? Or should i just give up on this house, rent for a while longer and start actually saving?
Any advice appreciated
Ethan
ethanw, where there’s a will…..
From what I have read of this site, there are some fantastic mortgage broker’s on this site. If you are willing to give up a few “do-dads” ( you’ll read about it soon enough ), they will very likely be able to help you.
Saving is always good anyway. Check out some of the “web links” you’ll do well there.
Personally. the two books that affected me the most are “The Richest Man in Babylon,” and “7 Secrets of the Rich”. Read them ( along with others ), read this site, and talk to people – voila’ you’re on way.
Cheers
“Looking forward to the day when I can tell the boss where to go”
ethanw,
Regardless of whether you could see a few doodads to bring in some cash the key to building wealth has always been to be able to live below your means.
You need to have some cash left over from your income to spend on investments.
While it’s possible in today’s world that you can find someone to fund you into a home with little or no cash in hand, do you really believe that you have the discipline to pay a mortgage & move forward?
You should concentrate on learning how to effectively manage your money – part of this is saving, part of this is being more discriminating about how you spend the money you do spend.
I suggest your first focus should be on doing some reading & putting into practice budgetting. Attempt to save 30% of your income each week.
If you can achieve this you can achieve whatever level of assets & future financial freedom you dream of.
If you cannot achieve this – don’t worry, you’re in good company…most people end up working for 45 years & destitute at the end of it. There’s no risk in this whatsoever!
Cheers,
Aceyducey
acey’s comments are bang on the money, its takes sacrifice to build wealth, the toys are sucking your finances down the drain by the sounds of it.
Thanks for all the comments. I know I could definitely save. I have seen briefly something about a personal loan for the deposit is this too risky what could happen in this situation ? Or what would be my chances of vendor finance or finding a wrapper?
Ethan,
Your situation isn’t *too* bad :o) Don’t let others patronise you. I see you are in sydney. Given that you have possibly 13k in “savings” of cars, plus you can get the 7k first home owners grant on a home purchase (not an investment purchase), that’s 20k you have available to you. Unfortunately, you’ll probably need 50k to get a 20% deposit on the place you are wishing to buy. Other than that, you can possibly get lender’s mortgage insurance, with less than a 20% deposit, but it’ll cost ya.
Your 50k salary means you are in there with a decent chance for a loan. It really probably is a good idea to speak to a Mortgage Broker to sort out what your options are.
Best of luck!
kay henry
Ethan
I agree with Kay, just because you haven’t been saving does not mean you cannot do it in the future (ie. mortgage repayments).
If it is really your dream house, go for it. Deep down, you know yourself if you can do it. We were in the same position as you and infact still don’t save anything, we just pay off our PPoR mortgage as quickly as possible.
We had a couple of assets that we sold for the deposit and only began saving when we started looking at houses.
Good luck
‘Eat rich food, barbeque a yuppie’ [greedy]
Originally posted by kay henry:Your situation isn’t *too* bad :o) Don’t let others patronise you. I see you are in sydney. Given that you have possibly 13k in “savings” of cars, plus you can get the 7k first home owners grant on a home purchase (not an investment purchase), that’s 20k you have available to you. Unfortunately, you’ll probably need 50k to get a 20% deposit on the place you are wishing to buy. Other than that, you can possibly get lender’s mortgage insurance, with less than a 20% deposit, but it’ll cost ya.
Kay,
In other posts you claim to be a conservative investor!
And here you’re being anything but conservative.
IMHO you need to lose that baggage about ‘patronising’ you carry around with you. It distorts your perceptions such that you keep reading the wrong things into posts & creating unnecessary conflicts.
Ethan – believing you can save is great! Now prove it.
Stay away from a personal loan on your first property purchase – this is a HIGH risk approach!
Believe me, you WILL find another dream house – or be able to build it down the track. It is not as if there is only one property for you & you only have one shot at it.
If you were an experienced investor my advice would be different, but as you’re new at this & are still to learn personally about all the ins & outs of purchasing property I advice you to take it slow & ensure that you control the risks!
Cheers,
Aceyducey
.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
