JimandBarbinAus

Buying Real Estate

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    Hi, my hubbby and I are chewing the fat about getting on the ladder out here and all that, to buy not buy? The rates about 5.9% at the moment is that right for an average? Also for those of you who have gone through the process what kind of deposits did you need to secure a mortgage, 10% 20%?? thanks muchly everyone :) Laura xx

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    Deposits can vary, some want 5,10 or if you are on a Temporary visa I think its 20%.

    Some banks are offering as low as 5.5% now.

    When to jump on the ladder? Only you can make that decision. If you do find a home and love it, then you should buy it. In the long term it

    will only go up. Short term, depending on where you are looking, prices may stay flat or even drop slightly further, who knows?

    If you are looking South where I work in Seaford Rise, I have noticed more people out at open inspections not only us English but a lot of Brazilians and South Africans

    coming through. With all the talk of the rail extension and the duplication of the expressway as an area we feel that we have pretty much levelled out and could possibly

    see prices start to turn.

     

    Crystal ball stuff???

     

    Cheers Chris

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    Hi, my hubbby and I are chewing the fat about getting on the ladder out here and all that, to buy not buy? The rates about 5.9% at the moment is that right for an average? Also for those of you who have gone through the process what kind of deposits did you need to secure a mortgage, 10% 20%?? thanks muchly everyone :) Laura xx

     

     

    Hey Laura

     

    5.90% is about right on a variable although these should start coming down a bit over the next week or so due to the latest rate cuts. Around 5.39% on fixed rates are achievable at the moment too.

     

    In relation to deposit, for permanent residents then you will require around 5% - 10% as lenders maximums are ranging between 90% - 95% LVR currently.

     

    In addition to this you will require monies to cover costs i.e stamp duty etc, allow around 5% for this.

     

    Also if you are borrowing over 80% then a Lenders Mortgage Insurance (LMI) premium is payable however this can be added onto the loan in some cases.

     

    You may be eligible for the First Home Owners Grant which is currently $7,000 on property up to $575,000.

     

     

    See also this thread as it is explained in a bit more detail http://www.pomsinadelaide.com/forum/money-finance/32547-mortgages-grants-buying-property-update.html

     

     

     

    Regards

     

     

    Andy

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    Hi Laura,

     

    We have just bought, we are on a temp visa but managed to get a 90% mortgage, so 10% deposit. There are a lot of fee's also to consider - about another 6-7% of purchase value (in our experience).

     

    We signed for our mortgage officially yesterday and we managed to get 0.8% discount on the base rate from westpac - which I think is in line with most of the other mortgage lenders.

     

    Happy house hunting!

     

    Beck

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    Guest Guest75

    If you do go ahead be prepared for a very swift transaction!!

     

    Property can change hands at a frightening rate!!!!

     

    We've had the keys in two weeks on some houses.

     

    The one we are moving into shortly is taking 3 weeks!!!

     

    Study the process and get lots of independent advice.

     

    You offer a signed contract, if accepted you have 3 days cooling off then put the deposit down and it's binding!!

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    Guest Guest5035

     

     

    Study the process and get lots of independent advice.

     

    You offer a signed contract, if accepted you have 3 days cooling off then put the deposit down and it's binding!!

     

    But a "Subject to blah blah" is also a way out if needed, like subject to a building inspection or finance..and i believe, someone may correct me, but its 3 CLEAR working days, ie sign friday, but it actually starts Monday for 3 days, so you really get 5 to think.

     

    Stevo

    Edited by Guest5035

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    Guest Guest75
    But a "Subject to blah blah" is also a way out if needed, like subject to a building inspection or finance..and i believe, someone may correct me, but its 3 CLEAR working days, ie sign friday, but it actually starts Monday for 3 days, so you really get 5 to think.

     

    Stevo

     

    I sit corrected Steven, I was in a real rush with several windows (on PC) open at the time.

     

    Main thing is to warn the newer to the Aussie property market that you can feel quite "Railroaded".

     

    Yep....3 CLEAR WORKING DAYS and "subject to's can be added but be wary as too many will stuff up the contract.

     

    Holy Crep, we are putting deposit down and then will be sat on an unconditional contract for our new abode!

     

    Thanks for the lovely comments to all who have seen the house :wink::wink:

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    Guest bubbe2005
    Hey Laura

     

    5.90% is about right on a variable although these should start coming down a bit over the next week or so due to the latest rate cuts. Around 5.39% on fixed rates are achievable at the moment too.

     

    In relation to deposit, for permanent residents then you will require around 5% - 10% as lenders maximums are ranging between 90% - 95% LVR currently.

     

    In addition to this you will require monies to cover costs i.e stamp duty etc, allow around 5% for this.

     

    Also if you are borrowing over 80% then a Lenders Mortgage Insurance (LMI) premium is payable however this can be added onto the loan in some cases.

     

    You may be eligible for the First Home Owners Grant which is currently $7,000 on property up to $575,000.

     

     

    See also this thread as it is explained in a bit more detail http://www.pomsinadelaide.com/forum/money-finance/32547-mortgages-grants-buying-property-update.html

     

     

     

    Regards

     

     

    Andy

     

     

    Andrew,

     

    In addition to the $7000 grant, is there an extra $8000 making it $15,000 to purchase a NEWLY built property?

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    Very interesting post as we will be looking to lay a deposit of circa £200,000 so hopefully puts us in a strong position. Being a chartered surveyor I would be quite picky. Are there many traditionally constructed new builds or are they all system builds? I also am not keen on crinkly tin roofing, is this now more common than tiled?

     

    I quite like the idea of new build maybe even our own build one day.....would love a cube house.

     

    S

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    Very interesting post as we will be looking to lay a deposit of circa £200,000 so hopefully puts us in a strong position. Being a chartered surveyor I would be quite picky. Are there many traditionally constructed new builds or are they all system builds? I also am not keen on crinkly tin roofing, is this now more common than tiled?

     

    I quite like the idea of new build maybe even our own build one day.....would love a cube house.

     

    S

     

    Not sure what you mean by traditionally comstructed, but most houses here are timber framed, although some builders will use steel frames. The construction of the walls can vary quit a lot. Some older houses the walls were constructed from asbestos but brick has been used a lot since then. It is also possible to construct using Hebel and our builder was showing us an alternative material that is made from polystyrene. The crinkly tin roofing you refer to is actually colourbond and is a practical and popular choice here, but we are going to have to pay a bit extra for colourbond as tiles are standard with our builder. Double glazing isn't standard but is becoming mo common in new builds due to the requirement for all new houses to achieve six start energy ratings. It's usually aluminium framed but you can get UPVc double glazing and this is what we have specified for the house we are building.

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    Traditional is heavy materials ie brick and block or block/brick rendered. Good to hear about windows and are asbestos tests/surveys undertaken? Cement bound asbestos is not an issue but aib (asbestos insulating board) is. Roofing is interesting, no use of concrete slate, will simply have to get used to new products and techniques.

     

    Is there any way I can read up on building techniques and materials as when visas are granted I am very keen to reg with AIB (Aus Institute of Building) to improve work prospects.

     

    Thanks S

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    Guest Kadphises
    Andrew,

     

    In addition to the $7000 grant, is there an extra $8000 making it $15,000 to purchase a NEWLY built property?

     

    No, there is a $7000 federal first home owners grant (for citizens and permanent residents only, I believe) and then there is another $4000 state grant, it was halved in June or July this year and in June/July next year it will be abolished. So if you buy before June/July you'd get $7000 plus $4000 and after that only $7000.

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    There is a lot of older buildings that are traditional build but the soil here is reactive and moves a lot so nealy all houses that are built are on a raft foundation or a slab as its called here. There is plenty of asbestos here they were still using it into the 80s here.So any house built before think its about 83 has a good chance of having some type of asbestos in it from roofs to floor tiles. There is plenty of concrete roof tiles here colourbond is cheaper to install and cheaper to buy as a material and the roof structure is lighter as tin is not as heavy as tiles. They use a lot of cement sheets on upper stories and hebal its just a airrated sheet about 600mm x 2.400 x 100mm just a cheap way of construction. Most houses are timber frame but not like the UK timber frame. when they say timber frame that is all it is is a timber frame its not sheeted with ply exept for some wind bracing no building paper wrap and no vapour barrier.

     

     

    Traditional is heavy materials ie brick and block or block/brick rendered. Good to hear about windows and are asbestos tests/surveys undertaken? Cement bound asbestos is not an issue but aib (asbestos insulating board) is. Roofing is interesting, no use of concrete slate, will simply have to get used to new products and techniques.

     

    Is there any way I can read up on building techniques and materials as when visas are granted I am very keen to reg with AIB (Aus Institute of Building) to improve work prospects.

     

    Thanks S

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    Andrew,

     

    In addition to the $7000 grant, is there an extra $8000 making it $15,000 to purchase a NEWLY built property?

     

    Hi Bubbe

     

     

    Yes, you are right this is currently the case.

     

    SA First Home Bonus Grant (FHBG) – http://www.revenuesa.sa.gov.au/fhog/bonus.html

     

    Available for eligible first home owners to the value of $8,000 that are either buying brand new or building a home. The $8,000 grant has been extended as it was due to reduce to $4,000 at the end of June 2012 but instead is now to run to the end of June 2013 after which the FHBG will be fully abolished.

     

    Again there are value caps in place being that once the property value hits over $400,000 the grant is progressively reduced and phased out completely when the property value hits $450,000.

     

     

    Best hurry tho!!! :smile:

     

     

     

    Andy

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    Guest bubbe2005
    Hi Bubbe

     

     

    Yes, you are right this is currently the case.

     

    SA First Home Bonus Grant (FHBG) – http://www.revenuesa.sa.gov.au/fhog/bonus.html

     

    Available for eligible first home owners to the value of $8,000 that are either buying brand new or building a home. The $8,000 grant has been extended as it was due to reduce to $4,000 at the end of June 2012 but instead is now to run to the end of June 2013 after which the FHBG will be fully abolished.

     

    Again there are value caps in place being that once the property value hits over $400,000 the grant is progressively reduced and phased out completely when the property value hits $450,000.

     

     

    Best hurry tho!!! :smile:

     

     

     

    Andy

     

     

    And when one qualifies for the $15,000 on a new house, they are still EXPECTED to meet the 20% additional downpayment?

     

    So if a NEW home is on the market for $350,000, they would still need to put down $70,000 downpayment.

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    Hi Bubbe

     

    The grants are not reliant on any downpayment they are a seperate to the Banks policies.

     

    The 20% deposit in your case was due to the fact that you will be a temporary resident (discussed in a previous thread), this is lenders policy and generally lenders will not lend over 80% to temporary residents (however as advised previously there are 1 or 2 lenders that may go to 90% for temporary residents who are in a very strong position).

     

    However if you are a temporary resident then you will not qualify for the First Home Owners Grants. Although if you had bought/built a house as a temporary resident and subsequently gained permanent residence within 12 months of buying/building then it can be claimed retrospectively.

     

     

     

    Regards

     

     

    Andy

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    Ian thanks for the reply. Do I assume newer buildings are on mini piles? If not i might have to start importing as a great product. I deal with a lot of subsidence here in uk and brothers house in central Adelaide is suffering although likely due to poor drains. Not much scares me with buildings however its nice to sit back and know you have bought a good solid house, new or old.

     

    As a more general question, how does the property market compare to Realestate.au.com which I guess does not represent the fast moving market with many properties sold before reaching any web site?

     

    Thanks

     

    S

     

    There is a lot of older buildings that are traditional build but the soil here is reactive and moves a lot so nealy all houses that are built are on a raft foundation or a slab as its called here. There is plenty of asbestos here they were still using it into the 80s here.So any house built before think its about 83 has a good chance of having some type of asbestos in it from roofs to floor tiles. There is plenty of concrete roof tiles here colourbond is cheaper to install and cheaper to buy as a material and the roof structure is lighter as tin is not as heavy as tiles. They use a lot of cement sheets on upper stories and hebal its just a airrated sheet about 600mm x 2.400 x 100mm just a cheap way of construction. Most houses are timber frame but not like the UK timber frame. when they say timber frame that is all it is is a timber frame its not sheeted with ply exept for some wind bracing no building paper wrap and no vapour barrier.

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