Visa Granted 11/3/11
Arrived in Adelaide 3/8/12
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For the first few years are income will probably be around 55000-60000 as my wife won't be working or will jut be doing part time casual work so am not even sure we could get a mortgage on this wage despite having a 50000 deposit?! Will have a look at talking to vista! thanks for telling me about them!
Somebody I know got a mortgage they could afford, they managed to pay off that mortgage in 5 & 1/2 years (using an excellent mortgage type, and adjusted lifestyle to suit), used that equity to move up the property ladder, with the help of another smaller mortgage which was paid off in 3 years, they now have a mortgage free home valued at $850k in less than 9 years, and are able to buy investment properties to aid future financial security, something which was once only a dream for me to achieve. May we ask how yours heading along?
PS. that person I know is me! so my advice comes from tested and proved experience, but this could be anybody and I do know of others both in Aus and UK whom have similar stories.
PS. that person I know is me! so my advice comes from tested and proved experience, but this could be anybody and I do know of others both in Aus and UK whom have similar stories.[/QUOTE]
Wow, can only dream of that happening for us! Fingers crosses we might be able to have something like that in oz! Thank you
We have done similar on our first Ozzie house. We wanted to keep savings aside to enjoy the lifestyle (for the pool and a boat maybe if Kate lets me...) so went for a property about $100k less than we could have got had we stretched ourselves. I'm planning to make overpayments of about 10% on the mortgage from the get-go, and when Kate starts to work we may be able to reduce the term.
YOu have to remember that the main reason people made the move was to enjoy the quality of life Australia has to offer - hardly likely if you have a crippling mortgage and no savings.
Angus 33 - Regional Manager Pharmaceuticals/Medical, Kate 34 - Primary Teacher, Logan 5, Jacinta 3 , Vetassess applied 10/01/2012 Approved 28/02/12 IELTS 9/9/9/9 9/2/12 Applied SA SS 5/3/12 SS offered 1/4/12 176 Visa applied 12/4/12 CO Assigned 21/4/12 176 VISA Granted 16/05/2012!!! Reccie 23/3 - 9/4/13 LOVED IT!BIG MOVE - 8/1/14
Just remember, interest rates are at or near the lowest level EVER (therefore may go up quicker than expected).
Land/Property prices may shoot up, stay still, or even go down.
When planning any major financial investment, always try to allow for the unexpected.
Previous major gains in property prices are no indication of future performance.
This method worked extremely well for us, so that is why I am sharing my experience, but I am also sure other methods/choices work for others, in the end each person/couple have to be happy and content in having made their own informed/researched/lifestyle choices.
happy life to all.
Totally agree Lisa, at the end of the day if you can own the roof over your head at the same or similar cost to renting then a 5% deposit is just fine. I purchased my house 18 months ago with only a 5% deposit and yes the LMI was a rip off but here today my house has now been valued at $140K more than my purchase price (with less than $20K spent on renos). I remember my best mate having a 100% mortgage in the UK back in 1999,anyone remember those?, paid heaps extra in interest charges (and LMI) but when he also moved to Adelaide back in 2006 he used the equity from his UK 2 bedroom shoebox to buy one of those 6 bedroom cardboard houses in Mawson Lakes, in cash!
It is about emotion and ultimately being happy where you live, whilst being sensible about what you can afford. Isn't that the reason why we all moved from the UK to live here? If you have a 20% deposit great, I did for my first house in regional SA in 2007, but moving back to Adelaide that wasn't the case..........if I'd limited myself to the belief that I had have a 20% deposit to move to Adelaide I'd still be trapped in a regional SA city with next to zero growth in equity and far fewer of the lifestyle benefits of living in an Adelaide suburb. The only thing I would recommend is that as a couple ensure that one wage can cover the mortgage, that way if circumstances change eg kids, job change/loss at least one wage is keeping that roof over your head.