69 replies to this topic

[MissEdumacated]

***below is history, what brought me to question, skip this if you don't want to read***

I am already way stressed and sick, I couldn't even begin to make up a list atm of all the things that are stressing me. But the final blows came today, in the form of School newsletter sent to us, they paid wrong postage, so now we owe post office extra post costs, plus there outrageous "service fee" for attaching a piece of bloody cardboard to the back of it. A red reminder notice from the eletricity company, and from the RE. I already received a letter from the RE yesterday saying they were planning to conduct their inspection on the 21st (which I expected), btu received a letter today stating they had done a "Driveby" inspection and that we were currently breaking our lease because the lawns needed mowing (one calf length patch of greass outside our fence where it seems to have super growing power) and that it would have to be rectified by their new driveby inspection next week FFS! Its just too much to effin deal with. What in the world did I effin do to deserve everybody always clawing at me for something? Anyhoo rant over and on to next stage

**end of history***

*Full question, skip if you want summary qquestion**

We cannot save up the money for a deposit (rules/laws whatever state their must be genuine provable savings of at least 5% saved up) since we are currently paying off mutiple sources *credit cards, parents loan) but if I am ever to get better, we CANNOT rent, its just too much effin stress, same with moving, it seriously makes me worse. But if you look at it this way we are damned if we do, damned if we don't no way to buy a house, and a never ending spiral of me getting more stressed.

They brought the 5% fact in after some mortgage doo-hcieky, so there is no 100% home loans anymore, you must, apparently, have the %=5% genuine savings, which means we can't even accept a "Gift" for it off in laws or anything.

***end of full question**

Has ANYBODY found a way round the 5% deposit thing? I honestly could not care if we lived in a carvan on land or a crappy house, as long as its ours iykwim?

I guess I am hoping for some sort of miracle solution lol.

[teddy]

There are ways around everything. I would suggest contacting some second tier mortgage providers and see if they can help you. We have had to go through one to get our new mortgage because dh is self employed and the banks didn't want to know even though we had a hefty deposit. Our interest rate is higher than the bank rates though.

[mum2one08]

yep RAMS do a fast track homeloan where you need a parents as garauntor (sp)
we are in process of this atm

NO DEPOSIT AT ALL

they finance 110% of purchase price (so covers all legals/stamp duty as well)

[jag5000]

Do you have someone that would use the equity in their home so you could get a garantor loan? That's what we are doing

[misslouie]

MaidOfMany, on 09 September 2010 - 12:40 PM, said:

***below is history, what brought me to question, skip this if you don't want to read***

I am already way stressed and sick, I couldn't even begin to make up a list atm of all the things that are stressing me. But the final blows came today, in the form of School newsletter sent to us, they paid wrong postage, so now we owe post office extra post costs, plus there outrageous "service fee" for attaching a piece of bloody cardboard to the back of it. A red reminder notice from the eletricity company, and from the RE. I already received a letter from the RE yesterday saying they were planning to conduct their inspection on the 21st (which I expected), btu received a letter today stating they had done a "Driveby" inspection and that we were currently breaking our lease because the lawns needed mowing (one calf length patch of greass outside our fence where it seems to have super growing power) and that it would have to be rectified by their new driveby inspection next week FFS! Its just too much to effin deal with. What in the world did I effin do to deserve everybody always clawing at me for something? Anyhoo rant over and on to next stage

**end of history***

*Full question, skip if you want summary qquestion**

We cannot save up the money for a deposit (rules/laws whatever state their must be genuine provable savings of at least 5% saved up) since we are currently paying off mutiple sources *credit cards, parents loan) but if I am ever to get better, we CANNOT rent, its just too much effin stress, same with moving, it seriously makes me worse. But if you look at it this way we are damned if we do, damned if we don't no way to buy a house, and a never ending spiral of me getting more stressed.

They brought the 5% fact in after some mortgage doo-hcieky, so there is no 100% home loans anymore, you must, apparently, have the %=5% genuine savings, which means we can't even accept a "Gift" for it off in laws or anything.

***end of full question**

Has ANYBODY found a way round the 5% deposit thing? I honestly could not care if we lived in a carvan on land or a crappy house, as long as its ours iykwim?

I guess I am hoping for some sort of miracle solution lol.

for our deposit which was almost half of the value of our house it was a gift from the inlaws and all we had to do was get them to write a letter stating that it was a gift and they did not want this money back etc and they had to show that they had the money in there account so yes it can be done they just wont tell you that we had to ask and ask again before we found out it is the way it can be

Edited by misslouie, 09 September 2010 - 12:53 PM.

[Missbliss]

My younger sister got a loan with a provider that used her first home owners bonus thingo from the government as her deposit so she effectively didn't need a deposit.

Don't know if they have this anymore? In any rate the loaning institute was Tassie Home Loans which won't help you either. Just wanted to let you know that there probably are ways around it.

Or. . . you could possibly buy privately and pay the rent as mortgage deposits. I have heard of people doing this but yes they were very very lucky to get that type of arrangement.

Haven't really helped have I? Sorry.

[treegal]

as mum2one08 said, some banks accept a guarantor. Usually this means a second mortgage on their property, BUT only to the value of the 20% deposit required for your property.

Speak to a broker - they know which one's will and won't accept your application after going over your finances.

[MissEdumacated]

ooops sorry should of mentioned, my in laws are from UK, so equity would be overseas home, and they would want the money back lol.

sort of stuffs both those avenues, I could try a second tier place as you say, but I don't know whether we would be able to afford anything if the interest rates were huge.

Missbliss, what did you mean by this

"Or. . . you could possibly buy privately and pay the rent as mortgage deposits. I have heard of people doing this but yes they were very very lucky to get that type of arrangement." pay rent as mortgage deposits? obviously brain is weak lol, as I sort of understand, but also don't LOL, do you mean rent to buy arrangement?

[Missbliss]

MaidOfMany, on 09 September 2010 - 12:56 PM, said:

ooops sorry should of mentioned, my in laws are from UK, so equity would be overseas home, and they would want the money back lol.

sort of stuffs both those avenues, I could try a second tier place as you say, but I don't know whether we would be able to afford anything if the interest rates were huge.

Missbliss, what did you mean by this

"Or. . . you could possibly buy privately and pay the rent as mortgage deposits. I have heard of people doing this but yes they were very very lucky to get that type of arrangement." pay rent as mortgage deposits? obviously brain is weak lol, as I sort of understand, but also don't LOL, do you mean rent to buy arrangement?

Yes, that is what I mean. Sorry, I'm not very good at explaning things and I'm totally going to blame baby brain (even if it a just!!). lol

[misslouie]

MaidOfMany, on 09 September 2010 - 12:56 PM, said:

ooops sorry should of mentioned, my in laws are from UK, so equity would be overseas home, and they would want the money back lol.

sort of stuffs both those avenues, I could try a second tier place as you say, but I don't know whether we would be able to afford anything if the interest rates were huge.

Missbliss, what did you mean by this

"Or. . . you could possibly buy privately and pay the rent as mortgage deposits. I have heard of people doing this but yes they were very very lucky to get that type of arrangement." pay rent as mortgage deposits? obviously brain is weak lol, as I sort of understand, but also don't LOL, do you mean rent to buy arrangement?

my in laws are from new zealand and we were told they will not accept the property of theres as like collateral it has to be in the same country but mayb they could state that they are GIFTING you the money even thought they rnt ( cause im assuming they may of offered money from what u wrote earlier??) and i think missbliss means sometimes in our local paper you see adverts saying rent to buy no banks neccarcery no deposit etc but the repayment rates are quite high i think??

[mum2one08]

MaidOfMany, on 09 September 2010 - 12:56 PM, said:

ooops sorry should of mentioned, my in laws are from UK, so equity would be overseas home, and they would want the money back lol.

sort of stuffs both those avenues, I could try a second tier place as you say, but I don't know whether we would be able to afford anything if the interest rates were huge.

Missbliss, what did you mean by this

"Or. . . you could possibly buy privately and pay the rent as mortgage deposits. I have heard of people doing this but yes they were very very lucky to get that type of arrangement." pay rent as mortgage deposits? obviously brain is weak lol, as I sort of understand, but also don't LOL, do you mean rent to buy arrangement?

I THINK SHE MEANS THOSE RENT TO OWN HOMES. (sorry bout caps)

you can look here for them: http://www.renttoownhome.com.au/

[Eggyj81]

MissBliss- they dont let you use the FHOG as your deposit now, the lending conditions are a lot stricter. They seemed to be tightening it up just as we were going through this process last year.

Probably the only way around it is to have a guarantor or someone who can put up some equity in their house as security.

Deposit wise, you would probably need more like 10% savings now as they are pretty strict again.

What went in our favour was the bank we went and saw, DH had previously had a personal loan with them and paid it off early so that was good lending history. We had tried going through a broker but after 9 months of going back and forth and being knocked back she finally said to us to look for a smaller crappier house that we could afford. The next day we went in and spoke to the bank in person and had preliminary approval that week. Guess i should have just gone to the bank first but we though a broker would be more helpful.

[chachee]

MaidOfMany, on 09 September 2010 - 12:56 PM, said:

ooops sorry should of mentioned, my in laws are from UK, so equity would be overseas home, and they would want the money back lol.

sort of stuffs both those avenues, I could try a second tier place as you say, but I don't know whether we would be able to afford anything if the interest rates were huge.

Missbliss, what did you mean by this

"Or. . . you could possibly buy privately and pay the rent as mortgage deposits. I have heard of people doing this but yes they were very very lucky to get that type of arrangement." pay rent as mortgage deposits? obviously brain is weak lol, as I sort of understand, but also don't LOL, do you mean rent to buy arrangement?

yeah neither of our parents own a house so thats out for us also. I heard you can use your first homeowners grant as a deposit?? I dont know. I know we cant buy at these prices as you lose allot of support from centrelink and that gets us buy ALLOT

[MrsShe]

You can do a rent buy scheme...this is where you pick a house, treat it as your own as in paint walls etc and pay rent plus another amount (incorporated in one payment). The other amount get put into some sort of 'forced saving' account and acts as a deposit in about 2 -3 years time when you have enough of it built up - it can be then used as your deposit to purchase the home. When you buy the home howver you purchase it at the current valued amount and usually the weekly 'rent' is quite high...as in $500 - $600 pw (which includes the 'forced saving' amount)

[chachee]

MrsShe, on 09 September 2010 - 01:01 PM, said:

You can do a rent buy scheme...this is where you pick a house, treat it as your own as in paint walls etc and pay rent plus another amount (incorporated in one payment). The other amount get put into some sort of 'forced saving' account and acts as a deposit in about 2 -3 years time when you have enough of it built up - it can be then used as your deposit to purchase the home. When you buy the home howver you purchase it at the current valued amount and usually the weekly 'rent' is quite high...as in $500 - $600 pw (which includes the 'forced saving' amount)

how do you do this???

[Eggyj81]

Quote

yeah neither of our parents own a house so thats out for us also. I heard you can use your first homeowners grant as a deposit?? I dont know. I know we cant buy at these prices as you lose allot of support from centrelink and that gets us buy ALLOT

Yep, you lose rent assistance (of course) but im pretty sure one of my payments went down, cant remember if it was PP or FTB, but one dropped as well.

[mum2one08]

i just put a link in my reply above for the rent buy scheme ^^^

[teddy]

The thing to keep in mind MoM is that your repayments will most likely be much higher than the rent you are paying so if you can't save now it's unlikely you will be able to meet the mortgage payments each month.

It would be a good idea to find out how much the average price is for a property in your area, work out what the mortgage on it would be and how much the monthly repayments would be. Then you would know if you can actually do it or not and not have to live on baked beans for the next 30 years.

Our mortgage is going to be double our rent by the time the house is finished being built, on top of that we have private school fees, therapies etc. It's pretty bloody scary actually.

[tess]

yep when you buy you loose not only RA but part of FTB part A too

[mum2one08]

teddy, on 09 September 2010 - 01:08 PM, said:

The thing to keep in mind MoM is that your repayments will most likely be much higher than the rent you are paying so if you can't save now it's unlikely you will be able to meet the mortgage payments each month.

It would be a good idea to find out how much the average price is for a property in your area, work out what the mortgage on it would be and how much the monthly repayments would be. Then you would know if you can actually do it or not and not have to live on baked beans for the next 30 years.

Our mortgage is going to be double our rent by the time the house is finished being built, on top of that we have private school fees, therapies etc. It's pretty bloody scary actually.

yeh you do need to keep those things in mind but not always. in my case ill only be paying an extra $80 a month compared to renting. (fingers crossed mine gets approved ) as yep like MoM im very stressed with the renting predicament

[teddy]

mum2one08, on 09 September 2010 - 01:12 PM, said:

teddy, on 09 September 2010 - 01:08 PM, said:

The thing to keep in mind MoM is that your repayments will most likely be much higher than the rent you are paying so if you can't save now it's unlikely you will be able to meet the mortgage payments each month.

It would be a good idea to find out how much the average price is for a property in your area, work out what the mortgage on it would be and how much the monthly repayments would be. Then you would know if you can actually do it or not and not have to live on baked beans for the next 30 years.

Our mortgage is going to be double our rent by the time the house is finished being built, on top of that we have private school fees, therapies etc. It's pretty bloody scary actually.

yeh you do need to keep those things in mind but not always. in my case ill only be paying an extra $80 a month compared to renting. (fingers crossed mine gets approved ) as yep like MoM im very stressed with the renting predicament

Wow, that's awsome! Hope it gets approved. We are renting too and it's beyond stressful, I hate it so much. I definitely get why MoM wants out.

[misslouie]

tess, on 09 September 2010 - 01:09 PM, said:

yep when you buy you loose not only RA but part of FTB part A too

not for me i did not we never recieved rent assistance to begin wiht but our ftb a has remained the same and it has all been updated on there networks to say we own the home as i was told by a friend it will go down etc but i went into centrelink and they showed me the details and said ti does not affect it

Eggyj81, on 09 September 2010 - 01:00 PM, said:

Deposit wise, you would probably need more like 10% savings now as they are pretty strict again.

my sis used to work at the CBA doing homeloans and she said they turn away ppl if they have less then 20% deposit on a average house in this area that is $80,000 how the hell are yyou supposed to save up that much and rent is beyond me

[JasK]

We didnt have a deposit, we have had our homeloan for 18mths and its with Rams. I think we gave them $1000 cause you needed to give them something but that was it. When we bought our FTB didnt go down at all

[Jenn]

teddy, on 09 September 2010 - 01:08 PM, said:

The thing to keep in mind MoM is that your repayments will most likely be much higher than the rent you are paying so if you can't save now it's unlikely you will be able to meet the mortgage payments each month.

It would be a good idea to find out how much the average price is for a property in your area, work out what the mortgage on it would be and how much the monthly repayments would be. Then you would know if you can actually do it or not and not have to live on baked beans for the next 30 years.

Our mortgage is going to be double our rent by the time the house is finished being built, on top of that we have private school fees, therapies etc. It's pretty bloody scary actually.

Like mum2one08, we've been through it with financial advisors, and we'd have MORE money each month than what we're doing right now, if we were able to buy. Despite this, and my IL's going through it and knowing, they wouldn't sign on with us for 2 years. (If they had when we asked, it'd nearly be done now, just a few more months, guh!)
Oh well, we'll just keep trodding along haha

[Chiron]

Good luck with it. I hope you find away around it. I don't want to be a downer but when considering your projected repayments make sure you factor council and water rates into the equation. We pay approx $2000 per year for our average home.

[tte]

You can do vendor finance wher ethe owner of the house loans you the money - you pay them the payment until a time when you are in a position to re-finance the home into your name - however it's not recommended and you need really good lawyers to go through all the documents as often homeowners put caveats on it, meaning if you were even one day late with a payment they will take you for everything!

There are low doc/no doc loans that usually require a very low deposit and you don't need a lot of paperwork - for people who have variable income or are self employed.

Some banks offer 100% lending loans but not some many now since the gfc.

Best thing to do is go see a mortgage broker(good, reputable one) and they have loads of products to suit each customer.

Just take into account when you are a home owner you have to allow for rate rises, council rates, insurances, maintenance, hot water service s,etc.

[MissEdumacated]

yep. I already have our budget, which is pretty low, putting us into the lower end of the middle market. It takes into account, land tax, council rates etc and any rises in interest, but thats for current bank loans, I saw some of those rates for the more shiftier loan places and the rates are insane, we would carely be able to afford a 1bed unit on a bad street for that lol.

I called up hubby and said "do you know hte lady who went mad & abused people over the phone then went on a shooting spree" him:"What? no" me:"Oh, sorry, because I haven't done it quite yet" PMSL

[~*~Magikal5~*~]

We don't own our home yet hunni but 6months ago we were going to try for the loan to buy this out off my aunt and uncle. They were gifting us 10-20% of the loan for deposit (and just adding it to the final price PMSL), but we were informed gifts cannot be used any longer. Since the whole financial crisis any lending has become extremely strict

Good luck hunni!
xoxoxox

[life-is-beautiful]

Are blocks $$ around your way?? We bought a block then used the equity on the block to build our house

[Cheeky_Monkey]

SleezyFrickentush, on 09 September 2010 - 05:02 PM, said:

I don't know why anyone's FTB has changed when they have bought, I own two houses and my payment hasn't changed

In some cases it most definitely does. Not the case for us, so I don't know what the criteria is - but I just did a dummy hypothetical estimate on the family assist website and not only did they remove the rent assistance, the FTB A went down by over $50 too.

[MissEdumacated]

yeah theres some cheap blocks, but we don't have any savings at all, so it would still be the same or stricter criteria for blocks wouldn't it?

Lord I'm trying to figure this out and work out bills right now, its doing my head in lol

[life-is-beautiful]

Oh my BF she got out a personal loan and used that for her deposit Shes works for the bank though so dont know if that a insiders rule/perk only

[misslouie]

~*~Magikal5~*~, on 09 September 2010 - 05:04 PM, said:

We don't own our home yet hunni but 6months ago we were going to try for the loan to buy this out off my aunt and uncle. They were gifting us 10-20% of the loan for deposit (and just adding it to the final price PMSL), but we were informed gifts cannot be used any longer. Since the whole financial crisis any lending has become extremely strict

Good luck hunni!
xoxoxox

ill add it again that si not true as long as the person who is gifting it can prove that it is there money they have saved and not like some sort of illegal money etc it is fine you just have to jump up and down a lil to get them to admit this we only bought 12 months ago and ours was gifted and it was fine after askign time and time again and they had to write a letter stating that it was a gift and they did not expect it back etc so maybe thats why it wouldn work cause they were adding ti to the house price ??

[~*~Magikal5~*~]

misslouie, on 09 September 2010 - 05:12 PM, said:

~*~Magikal5~*~, on 09 September 2010 - 05:04 PM, said:

We don't own our home yet hunni but 6months ago we were going to try for the loan to buy this out off my aunt and uncle. They were gifting us 10-20% of the loan for deposit (and just adding it to the final price PMSL), but we were informed gifts cannot be used any longer. Since the whole financial crisis any lending has become extremely strict

Good luck hunni!
xoxoxox

ill add it again that si not true as long as the person who is gifting it can prove that it is there money they have saved and not like some sort of illegal money etc it is fine you just have to jump up and down a lil to get them to admit this we only bought 12 months ago and ours was gifted and it was fine after askign time and time again and they had to write a letter stating that it was a gift and they did not expect it back etc so maybe thats why it wouldn work cause they were adding ti to the house price ??

Financial advisor didn't know that the "gift" was going to be added onto the home loan price, they just thought the price of the home and the gift were two seperate transactions. Nothing worked for us, but hey it just wasn't time for us anyway as we'd be in a huge amount of financial strain had it gone through
xoxox

[Merla]

Remember MoM that if anything goes wrong with the house you need to pay it. Toilet backs up, theres $200 for a plumber, hot water cylinder dies, there's 2k, termite checks, pest inspectors, electricity faults (dodgie lines, something blows), leak in the piping somewhere (potentially thousands of dollars).

We were offered a house (belonging to my IL's) at half the market value and they would keep a 50% share in it for tax reasons whilst we lived in it. For a half house our repayments were $450 p/w plus rates ($1500 p/y) plus tax, plus repairs, plus excess water, plus general maintenance etc. We couldn't afford it. We could afford the repayments alone but as soon as something came up we were screwed. Renting is much cheaper.

Don't mean to be a downer, but is it that hard to mow a small patch of grass outside your house? It would be cheaper to pay gardeners to come in every 4 weeks and mow, trim etc for you than to buy (where you will need to do that stuff anyway). If your struggling to make ends meet atm I wouldn't advise buying, especially with no deposit and no "buffer".

~*~Magikal5~*~, on 09 September 2010 - 05:37 PM, said:

misslouie, on 09 September 2010 - 05:12 PM, said:

~*~Magikal5~*~, on 09 September 2010 - 05:04 PM, said:

We don't own our home yet hunni but 6months ago we were going to try for the loan to buy this out off my aunt and uncle. They were gifting us 10-20% of the loan for deposit (and just adding it to the final price PMSL), but we were informed gifts cannot be used any longer. Since the whole financial crisis any lending has become extremely strict

Good luck hunni!
xoxoxox

ill add it again that si not true as long as the person who is gifting it can prove that it is there money they have saved and not like some sort of illegal money etc it is fine you just have to jump up and down a lil to get them to admit this we only bought 12 months ago and ours was gifted and it was fine after askign time and time again and they had to write a letter stating that it was a gift and they did not expect it back etc so maybe thats why it wouldn work cause they were adding ti to the house price ??

Financial advisor didn't know that the "gift" was going to be added onto the home loan price, they just thought the price of the home and the gift were two seperate transactions. Nothing worked for us, but hey it just wasn't time for us anyway as we'd be in a huge amount of financial strain had it gone through
xoxox

As far as I was aware (working in a bank) you just need to have the money in an account for 3 months to be classed as "savings". Our tax cheque for example could theoretically be our deposit (if it were larger) but we would need to hold onto it for 3 months before we could apply. Would they be willing to gift you the money, you put it away for 3 months and then pay them back with interest (that you earnt on the savings) once you get your loan?

[Cheeky_Monkey]

SleezyFrickentush, on 09 September 2010 - 05:33 PM, said:

Cheeky_Monkey, on 09 September 2010 - 05:10 PM, said:

SleezyFrickentush, on 09 September 2010 - 05:02 PM, said:

I don't know why anyone's FTB has changed when they have bought, I own two houses and my payment hasn't changed

In some cases it most definitely does. Not the case for us, so I don't know what the criteria is - but I just did a dummy hypothetical estimate on the family assist website and not only did they remove the rent assistance, the FTB A went down by over $50 too.

Ok, just found some info saying the income limit may be different if you are receiving rent assistance. I have never received rent assistance so that's why any property purchases wouldn't have affected my payements

Sounds about right. I wouldn't know, we bought before we had DS so never any rent assistance here.

[~*~Magikal5~*~]

We were advised to show 6-12months of savings history, so in affect I guess we could have saved and had the gift also and it may have worked? It sounds as though it's different for different people though.... just sharing our experience

Good luck MoM
xoxox

[misslouie]

Merla, on 09 September 2010 - 05:54 PM, said:

~*~Magikal5~*~, on 09 September 2010 - 05:37 PM, said:

misslouie, on 09 September 2010 - 05:12 PM, said:

~*~Magikal5~*~, on 09 September 2010 - 05:04 PM, said:

We don't own our home yet hunni but 6months ago we were going to try for the loan to buy this out off my aunt and uncle. They were gifting us 10-20% of the loan for deposit (and just adding it to the final price PMSL), but we were informed gifts cannot be used any longer. Since the whole financial crisis any lending has become extremely strict

Good luck hunni!
xoxoxox

ill add it again that si not true as long as the person who is gifting it can prove that it is there money they have saved and not like some sort of illegal money etc it is fine you just have to jump up and down a lil to get them to admit this we only bought 12 months ago and ours was gifted and it was fine after askign time and time again and they had to write a letter stating that it was a gift and they did not expect it back etc so maybe thats why it wouldn work cause they were adding ti to the house price ??

Financial advisor didn't know that the "gift" was going to be added onto the home loan price, they just thought the price of the home and the gift were two seperate transactions. Nothing worked for us, but hey it just wasn't time for us anyway as we'd be in a huge amount of financial strain had it gone through
xoxox

As far as I was aware (working in a bank) you just need to have the money in an account for 3 months to be classed as "savings". Our tax cheque for example could theoretically be our deposit (if it were larger) but we would need to hold onto it for 3 months before we could apply. Would they be willing to gift you the money, you put it away for 3 months and then pay them back with interest (that you earnt on the savings) once you get your loan?

ours was sent staright from inlaws account one week and was used to pay deposit next week they just had to prove they had it there to give to us but tht was july 2009 so who knows what the finance places r like now i guess

~*~Magikal5~*~, on 09 September 2010 - 05:57 PM, said:

We were advised to show 6-12months of savings history, so in affect I guess we could have saved and had the gift also and it may have worked? It sounds as though it's different for different people though.... just sharing our experience

Good luck MoM
xoxox

yes i also think that is true which is why i am surprised we were allowed to do it both being 21 with a baby i thought we would of been laughed out of the bank

[life-is-beautiful]

There are a lot of expenses owning a home thats for sure

[MissEdumacated]

yep, and a lot from renting with 3 kids and DH seriously. I am sick of replacing other peoples stuff. I am fully aware of expenses of owning, and honestly I seriously looked into small rural land and a fecking caravan. Its a seriously possibility, even just renting rural land and living in a caravan. I hate estate agents, with a vengeance. Problably made worse by the fact I used to work for one

[fairystar]

HUGS
We are the same..
We have owned and then moving from the UK and the price crash we broke even so the deposit for a house here was all gone
DH is now 43 and been a home owner since he was 26 and lost it all, so we are starting again with no deposit, its a nightmare...
BUT saying that, I actually feel so much better not owing so much money, I have friends who ended up in neg equity and 2 which lost their homes due to not being able to afford the mortgage and the rates over there are pretty low compared to here..
We are now living in a house that we could of only dreamed of owning and its totally unobtainable so that is great when we need the space and size now. We had to discuss it and decided we would rent somewhere nice and slowly safe money so we could just get a small retirement place when the kids have left and give them a decent home whilst we need it whilst they are young, but it was a hard desicision. The things I dislike are they could sell it as we have experienced recently and the nightmare of viewing and applying along with all the other..
The moving expenes that go with that and the fact I am constantly watching the kids dont damage stuff and cry inside with every dint and scuff they make...

BUT its nice having no real debt, being able to up and move if we hate the street, neighbours, house etc...
and no extra expenses, its so cheap renting here....and I love not having to pay for things when they go wrong, its such a relief..........
In the UK the renters pay for the water, rates etc...
the owners only pay the mortgage and building insurance.

[Jenn]

What about getting one of these accounts?

[Eggyj81]

MoM, have you looked into the cheap farmhouses that go up for rent in small towns that are trying to attract people with kids? It might not be buying a place right away, but if you could get a seriously cheap place then maybe you could start saving a decent deposit? I think they are bugger all rent, some are advertised at $1 a week or something ridiculous like that.

[ButterflyMumma]

Eggyj81, on 09 September 2010 - 07:59 PM, said:

MoM, have you looked into the cheap farmhouses that go up for rent in small towns that are trying to attract people with kids? It might not be buying a place right away, but if you could get a seriously cheap place then maybe you could start saving a decent deposit? I think they are bugger all rent, some are advertised at $1 a week or something ridiculous like that.

do you know where any of these are advertised??

[Eggyj81]

www.rentafarmhouse.com.au, or My link

Some of those might be out of date but you get the idea.

Edited by Eggyj81, 09 September 2010 - 08:25 PM.

[milkandcookies]

We went through Rams last year. They wanted a savings history of six months and 5% deposit. When we moved into our house, we lost rent assistance and family tax A dropped, when you buy your income threshold changes to a lower amount to when you rent. We recently spoke to another mortgage and he was saying these days banks are alot stricter and in some cases are leaning toward a 10% deposit, with 5% of that having to be from savings.

That is just how it worked for us and what we were told. Maybe it is different from state to state.

[Wills_mum]

I spoke to our bank the other day regarding loans and deposits as we are looking.
My mum is 'gifting' us 20% which doesnt have to be genuine savings because its over 5%.
With the 5% they said as long as its been in your account for longer than 3 months then thats classified as genuine savings.
Im with Commonwealth and thats what they told me.....other banks/lenders maybe different.