Will We Have Enough Dosh To Buy Near Adelaide?

[julieportsmouth]

Hi all,

We are just in the early stages of the process - hubby is having his skills assessed as we speak and just done his IELTS test.

After much deliberation about Brisbane and Adelaide we are definitly thinking Adelaide is going to be better for us and our 18 month old son. (the little cutie on the left)

Hubby works in IT and earns a good wage here in the UK ( but it doesn't go very far in the south) which equates to about $100k per year equivalent in OZ. We are trying to work on worst scenario so assuming he can get a job for about $80k per year in Oz.

We have a house to sell here and once we have taken out the huge costs for getting over there and renting for a while( we are budgeting about 10-12k) we reckon we will have about $40k aussie dollars to put down on a house.

We have looked at some properties in Adelaide and ideally we would like to buy a new or newish place with 4 bedrooms for about $250k to maybe £300k.

Can anyone tell us if this is a realistic budget for a decent family area not too far from the beach and commutable to CBD?

Also, does anyone know how much the mortgage companies are willing to lend you with that kind of deposit? Here in the UK as you know you can get 90 - 100% mortgages, but is it the same over there?

Any help would be greatly appreciated as we are trying to do our homework well in advance of the move!!

thanks in advance

Julie, Nigel & Rio xxx

[Impatient]

$300k or £300k?

[julieportsmouth]

sorry looking at budget of aussie dollars $300k

[Impatient]

The wage hubby is getting looks pretty good compared to what most can expect so I guess you would be in a fairly strong position mortgage wise. Your price range seems a little low for what you are after, but really depends on how far you want to be from CBD and the beach.

Have you checked out realestate.com.au and open2view.com.au ? Should give you some realistic ideas about what you can aim for. Also check out the threads on here about cost of living (do a search) and various people discuss costs of mortgages etc, which should help with budgetting.

Best of luck

[julieportsmouth]

thanks imp, we have had a look on realestate.au and there seems to be a fair few properties between $250k and $350k with 4 bedrooms, hubby is happy to commute an hour each way, we are hopeful that the budget will be ok if we can get a mortgage for 90% of the value....will keep looking and researching anyway

thanks again!

Jules, Nigel & Rio

[Tyke]

Originally Posted by juliemearns

sorry looking at budget of aussie dollars $300k

Hiya

Realistically I'd be budgeting for $350 - $400k for a house at least perhaps even more.
That will buy a reasonable house in outlying suburbs here.

I'd say for an average house here now it has to be the minimum price range.
I'd study realestate.com a lot more.

With $80k a year coming in that will give you a "reasonable lifestyle" if you are fairly careful I'd say.

We live in the South and the affordable areas are around 30 - 50 mins commute to the CBD.

[Tyke]

I've just done a searh on some of the most popular suburbs in the south using realestate.com
Price range $250 - 350K to give you an idea - hope the long pasted link works

Real Estate, Property, Land and Homes for Sale, lease and rent - realestate.com.au

[julieportsmouth]

Thanks so much Tyke,

We are hoping to buy a house and land package if possible in a decent family area. We are trying to low-ball everything in terms of expectations so that we are not disappointed when we get there. I think we may be being a bit pessimistic in terms of what Nigel can earn and what we can afford to borrow but we are guessing its the best way to think and then we will hopefully be pleasantly surprised when we get there!!!

However if Nigel was earning about $80k, does anyone know if its realistic to expect to get a mortgage for $300k? we have a deposit of about $40 - 50k and if it counts for anything we have a really good credit rating here with all our bills and mortgage.

I know here in the UK they only usually lend you 2 and a half times your annual salary, if its the same in Oz we are probably only going to be able to get a mortgage for $250k which limits our options a bit. Anyone have any ideas on this? I'm a self employed childminder here in the UK which I hope to continue with when we get to Oz but I probably won't work for the first 6 months so I can get us all settled in.

thanks everyone for being so helpful...we just don't want to have any major snags when we get there eventually!!

Jules, Nigel & Rio

[Tyke]

I'm no mortgage expert but I'd reckon a $300K one is achievable with $80K coming in.

I've just had a look on my bank's site (Bank SA) and it has some mortgage calculators.
Had a go on some rough figures and it looks fine.

Have a peek at.............

BankSA - Home Loan Calculators

Looks like 3x income to me!

Obviously you need proof of income and so on.If you are self employed you will need at least 3 months proff of business and income.

Pay the mortgage every 2 weeks instead of monthly it can knock up to 7 years off.

Watch out for mortgages here as there always seems to be a lot of extra fees and charges.I always haggle most of them off.

Shop around as well- loads of mortgage brokers here.


Don't forget to factor stamp duty into the equation - it's high here.
You'll be looking at $12 - 14K for nothing I'm afraid............... here is a calculator.....

Stamp Duty on Conveyances Calculator

Hope this helps.

[Life on easy street]

You should be entitled to a first time buyer grant
I think is about 7000 Dollars there also may be a limit to the price
house .
but each state is different .