Buying a house in Adelaide

Hi Fran,

 

If you were looking to purchase for $450,000 you would be looking at a deposit of 5% of the purchase price as a minimum ($22,500), plus stamp duty and Govenment fee's for the purchase ($22,349) plus lenders mortgage insurance if only contributing 5% of the purchase price. Lenders Mortgage Insurance charges do vary but a ballpark figure would be around between $11,000 and $14,000 however most of this could be added to the loan in certain cases. Some lenders will only add the lenders mortgage insurance to the loan to a maximum of 97% though so in that case you would require a higher deposit of around 6-7%.

 

You should also allow around $2,500 for Conveyancer fee’s and contingencies.

 

If you were to go permanent it would not necessarily give you a better rate. It would open you up to more lenders who can offer better rates than competitors however there is no better rate offered to casual employees as opposed to permanent employees.

Cool, good to know.

Someone I know is talking about a guarantor. Does this avoid the mortgage lenders insurance? Does this person have to be an Australian citizen?

Hi Fran,

 

I'm more than happy if you would like to give me a call and I can discuss the Conveyancing process with you and explain about the cooling off period and the contract conditions like finance approval, building/pest inspections etc.

 

Good look!

 

Kerry

Thanks Kerry!

Just collating info at the moment before I make a decision! It's all quite full on. Haha

Cool, good to know.

 

Someone I know is talking about a guarantor. Does this avoid the mortgage lenders insurance? Does this person have to be an Australian citizen?

I think mortgage lenders insurance is only where the income could be lower than necessary for the amount borrowed and it's a one off insurance Don't quote me on that one mind but I do recall my grandson had something like thatb

Mortgage lenders insurance is payable if you only have a small deposit. Eg 5%

Cool, good to know.

 

Someone I know is talking about a guarantor. Does this avoid the mortgage lenders insurance? Does this person have to be an Australian citizen?

Having a guarantor can avoid having to pay lenders mortgage insurance. The guarantor can offer their property as security for the loan providing there is enough equity in their property. In most cases a guarantor would need to be a permanent resident of Australia, the security (property) offered would need to be an Australian property and the guarantor should be a close family member, for example a parent or guardian.

Mortgage lenders insurance is payable if you only have a small deposit. Eg 5%

Hi Kelbert

Lenders mortgage insurance is typically payable if deposit is less than 20%.

I posted something yesterday which explains a little more regarding lenders mortgage insurance http://www.pomsinadelaide.com/forum/money-finance/47885-why-use-broker.html

Cheers

Adam.

Thanks for clarifying that! I'm clearly not good at remembering finer details!!

Thanks for clarifying that! I'm clearly not good at remembering finer details!!

No problem Kelbert:smile:

Cheers

Can I just clarify. Is the FHOG still eligible on new builds? $15k? Any loophole where a permanent resident can't apply for it? Just looking at my options... Is the FHOG due to change in the gorse able future at all? Thanks

Fran

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Hi Fran,

Yes the First Home Owners Grant is still available for new builds up to a purchase price value of $575,000.

You can check your eligibility here https://www.revenuesa.sa.gov.au/grants-and-concessions/first-home-owners

As a permanent resident you would be eligible if you (or your partner if applicable) have never owned a property in Australia previously.

Hope this helps:smile:

Can I just clarify. Is the FHOG still eligible on new builds? $15k? Any loophole where a permanent resident can't apply for it? Just looking at my options... Is the FHOG due to change in the gorse able future at all? Thanks

 

Fran

 

 

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Yes it's still available.

If buying a new house or apartment, I would encourage you to find something with some scarcity value. New properties in 'Lego land' type developments will take some time to be worth what you paid for them!

Sent from my iPhone using Tapatalk

Yes it's still available.

If buying a new house or apartment, I would encourage you to find something with some scarcity value. New properties in 'Lego land' type developments will take some time to be worth what you paid for them!

 

 

 

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Thanks for the info