Paul1Perth Posted November 7, 2013 Share Posted November 7, 2013 Stay we think. We've come to the conclusion that we aren't really suburbia people and need to be around the inner city 'buzz' if you like (if there is such a thing in Perth :biggrin:) Should have realised really, we've never lived in the suburbs whilst renting, so no idea why we thought it would be a good idea if we bought there (ok, got swayed by the big 4 bedder on a big block because we are 30 now so of course we should be doing grown up things like that...) when really we like being able to walk to cafes/bars/restaurants/supermarket etc etc - public transport in and out of Yangebup is pretty dire. Anyway, we don't regret it because of the way the market has moved, but we are thinking that if we have made a bit of cash and coupled with our savings and now the OH is working we can afford a larger mortgage and buy somewhere closer to the action. Not saying it's going definitely happen, and if finances don't work we'll stay put, but it's an idea at the moment. Where you live really affects your quality of life doesn't it Nic. You are young enough to take on a big mortgage and go and live somewhere you like the feel of. I would do it before you have kids and your priorities change again. You might have timed it right with your buy. Just had a look where Yangebup is and I can see your point if you're young and no kids. Do you like being near the Ocean? I reckon Scarborough has a lot going for it over the coming years. Looks like the developers have finally bitten the bullet and are spending loads in that area. Decent transport, pubs, clubs, shops and beach close by. My eldests favourite pub is Botanica in Innaloo. Didn't you used to live in Subi? It wouldn't be a bad idea to look at moving back there if you can afford it. Good luck. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 7, 2013 Share Posted November 7, 2013 You seem to be looking at buying a house as some sort of investment, not just because you need somewhere to live and like a particular, suburb, street, house. As for the market being clearly overinflated, who knows? I thought the UK market was in the same boat in 92 when we came here. We had paid 22,000 pounds for and end terrace and sold it 3 years later for 50,000. We sold it privately and the first day 2 young couples came and said they would have it, neither of them could get mortgages and they were both working with no kids. We sold it to a single girl who's Dad was a bank manager!! I thought it can't carry on like this, must be getting close to a big fall. Went back 10 years later and the same house was on the market for 100,000. Go figure. If you want somewhere to live, find a suburb and a house you like and think you would be happy to settle there, go for it. You have to live somewhere and if you're not paying a mortgage you are going to have to pay rent, so it may as well be going on a mortgage. Don't think it's a crazy Aussie Obsession either. Plenty of people around the world would love to own there own home. An obsession due to the tax structure allowing negative gearing. Every man and his dog, well some 1.6 million seem to think an investment property, regardless of low yield is the way to go. A lot due also to poor pension provision in Australia being a factor. While there is nothing wrong with owning your own house neither is there anything wrong with renting. Sadly Australia doesn't have in place protection for renters of any worth. AS such it forces folk onto the market regardless if ready or not. It ties up a lot of money that could be spent on other more productive things as well. The obsession in not only in Australia, the UK sadly became in the same boat in the 80s. You need to look further afield for other models. Link to comment Share on other sites More sharing options...
nicolac34 Posted November 7, 2013 Share Posted November 7, 2013 Where you live really affects your quality of life doesn't it Nic. You are young enough to take on a big mortgage and go and live somewhere you like the feel of. I would do it before you have kids and your priorities change again. You might have timed it right with your buy. Just had a look where Yangebup is and I can see your point if you're young and no kids. Do you like being near the Ocean? I reckon Scarborough has a lot going for it over the coming years. Looks like the developers have finally bitten the bullet and are spending loads in that area. Decent transport, pubs, clubs, shops and beach close by. My eldests favourite pub is Botanica in Innaloo. Didn't you used to live in Subi? It wouldn't be a bad idea to look at moving back there if you can afford it. Good luck. It really does, it's certainly Location, Location, Location and we won't forget that when making the decision next time. We did live in Subi and loved it - it's compounded even more by the fact my office moved to Subi a couple of months after we moved and the OH's new job is in Subi too! So now we have to commute here every day nearly an hour each way in the traffic and we used to live 5 minutes walk away... so that's annoying. We've got an eye out and we can comfortably afford to get a 3x1 townhouse in Subiaco/Mount Lawley/Leederville/Fremantle - so these are the areas we are going to concentrate on. We would lose a bedroom (which we aren't fussed about - don't use 3 of them at the moment anyway) and some land-space outside, but in 9 months we've learnt what a massive maintenance issue having a large grassy block is. We must have spent nearly one day at the weekend over the last couple of months and so far every night this week out there weeding and mowing, raking, hedge trimming and still doesn't look like we've made a dent! That and we got a notice from Western Power this week saying our trees are growing too close to the powerlines so we have to cut them back (quote this morning of $730 floored us!) so give me a small courtyard garden any day of the week - I'm officially a convert :laugh: Link to comment Share on other sites More sharing options...
flag of convenience Posted November 7, 2013 Share Posted November 7, 2013 Where you live really affects your quality of life doesn't it Nic. You are young enough to take on a big mortgage and go and live somewhere you like the feel of. I would do it before you have kids and your priorities change again. You might have timed it right with your buy. Just had a look where Yangebup is and I can see your point if you're young and no kids. Do you like being near the Ocean? I reckon Scarborough has a lot going for it over the coming years. Looks like the developers have finally bitten the bullet and are spending loads in that area. Decent transport, pubs, clubs, shops and beach close by. My eldests favourite pub is Botanica in Innaloo. Didn't you used to live in Subi? It wouldn't be a bad idea to look at moving back there if you can afford it. Good luck. You consider a big mortgage a good idea? Link to comment Share on other sites More sharing options...
Bibbs Posted November 7, 2013 Share Posted November 7, 2013 You consider a big mortgage a good idea? You have to live somewhere. Our mortgage is cheaper than renting, and we are overpaying massively. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 7, 2013 Share Posted November 7, 2013 I'd agree with some other posters I do think a degree of caution is required buying into the Perth market. It is too much of a one stop economy here to risk a big mortgage and to be tied down a working life by it. Interest rates will rise and jobs may well become hard to come by. I've seen it all in Oz before. As I stated imo, Sydney or Melbourne, the two recognised cities of Oz would be my choice. Perth could work in the short term but don't over pay. I have been looking for a few months now and clearly still over priced. They are for now being snapped up, but a good buy? Time will tell but have a lot of doubts. A paint job and some minor alterations does not make up for over valued real estate. Never the less will keep a lookout for that something special if comes onto the market. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 7, 2013 Share Posted November 7, 2013 You have to live somewhere. Our mortgage is cheaper than renting, and we are overpaying massively. Interest rates are at 52 year lows. They will certainly rise. Folk get caught over extending themselves every time. History has a funny habit of repeating itself. That being said if one really buys from the heart and intends to remain then no price is too much. Link to comment Share on other sites More sharing options...
Paul1Perth Posted November 7, 2013 Share Posted November 7, 2013 You consider a big mortgage a good idea? Why not? They're young enough. Most people do it and have a great life. The house is something that you can be proud of, do stuff to, feel secure in, entertain family and friends, bring up kids. If they go up in value all the better, if they go down you've had somewhere nice to live all those years and you eventually end up owning it. Link to comment Share on other sites More sharing options...
Chall77 Posted November 7, 2013 Share Posted November 7, 2013 I'm just about to move out to Perth. What sort of size deposits do banks ask for on mortgages in terms of percentages? I've been led to believe that they are considerably lower than the ridiculous 20 - 25% you often need to stump up in the UK. Any help is greatly appreciated. Link to comment Share on other sites More sharing options...
nicolac34 Posted November 7, 2013 Share Posted November 7, 2013 I'm just about to move out to Perth. What sort of size deposits do banks ask for on mortgages in terms of percentages? I've been led to believe that they are considerably lower than the ridiculous 20 - 25% you often need to stump up in the UK. Any help is greatly appreciated. 5% with 'genuine savings' will get you a mortgage over here, and even if they are not genuine (as in saved yourself over a number of months rather than a lump sum from somewhere) there are banks that will consider you. Link to comment Share on other sites More sharing options...
Guest JK2510 Posted November 7, 2013 Share Posted November 7, 2013 Bankwest did do 5% mortgages....not sure if they still do...we used a broker....excellent....a word of advice...if you are purchasing a property with a pool I would suggest a pool inspection as well...we wish we had paid that along with our house inspection/termite inspection. Link to comment Share on other sites More sharing options...
newjez Posted November 7, 2013 Share Posted November 7, 2013 Don't look at individual suburb data on reiwa. The volumes are so low it means nothing. Perth has been flat for the last four months. While Sydney is booming. Why? If I was to buy in Perth I would look at Belmont. It still has value and potential. Cheap and close to the city. Anywhere else is risky. Mandurah has fallen a lot. Not sure if its 28%, but it is down. Link to comment Share on other sites More sharing options...
Phoenix16 Posted November 7, 2013 Share Posted November 7, 2013 Why not? They're young enough. Most people do it and have a great life. The house is something that you can be proud of, do stuff to, feel secure in, entertain family and friends, bring up kids. If they go up in value all the better, if they go down you've had somewhere nice to live all those years and you eventually end up owning it. Once I would have agreed, not so sure now!! Perth IS expensive that's a fact, properties are expensive, I still get that nauseous feeling when I think about house prices, we could comfortably get a $2 mil mortgage here but in reality we wouldn't sleep a wink and we would have no quality of life and we'd be paying it off for 30 years, it's scary. We didn't have the good fortune to arrive in the 80's early 90's and buy the 'dream' we arrived 3 years ago when the price of property was a bit of a shocker to say the least!! I think today, it's just being smart about location and being realistic about the house. If you want to live in the Western burbs your going to pay top dollar, even 'shacks' go for a premium! We've gone for a 3 by 1 for $500k 2 KM's from Freo (where we just love) and 0.5km's from the beach as the crow flys and have decided to renovate, we figure the location has to be a winner long term given the population increase in Perth over the next 10 years or so, but if not, we've got a big block with a proper garden and pool, the house is an ongoing project but we will eventually have the 'dream' house and be mortgage free, we can see the light at the end of the tunnel! I take my Daughter to school every day in Mosman park, it takes me 10-15 mins Max, I look at the houses as I drive there, I dream,but the reality is we'd get a house there for a 3rd of our block size and 3 times the price. And on a final note, we rented in South Beach when we landed and got burgled while we slept, they cleared us out and drove off with the goodies in our car! Where we are now, we have the most awesome neighbors, the street has such a family and friendly feel, everyone looks out for each other and we feel so so safe, all in all we feel we made a good long term choice! Link to comment Share on other sites More sharing options...
Chall77 Posted November 7, 2013 Share Posted November 7, 2013 5% with 'genuine savings' will get you a mortgage over here, and even if they are not genuine (as in saved yourself over a number of months rather than a lump sum from somewhere) there are banks that will consider you. Thank you very much for the help guys. I can't wait to get over and knowing that deposit amounts are lower is a real help. All the best! Link to comment Share on other sites More sharing options...
Chall77 Posted November 7, 2013 Share Posted November 7, 2013 Bankwest did do 5% mortgages....not sure if they still do...we used a broker....excellent....a word of advice...if you are purchasing a property with a pool I would suggest a pool inspection as well...we wish we had paid that along with our house inspection/termite inspection. Thank you very much for the help guys. I can't wait to get over and knowing that deposit amounts are lower is a real help. All the best! Link to comment Share on other sites More sharing options...
Chardy Posted November 7, 2013 Share Posted November 7, 2013 Quite a few lenders do 5% deposits but anything less than 20% deposit attracts a hefty mortgage insurance levy which reduces how much you actually get to buy with by that amount usually 1-2% of your borrowings. Link to comment Share on other sites More sharing options...
pradiprn Posted November 7, 2013 Share Posted November 7, 2013 It is worth noting that if you can stump only 5% of the deposit. you will have to pay for Lenders Mortgage Insurance which is capitalized with the loan. So hypothetically if you brought a property worth 100,000 you would get a loan of 95000+ LMI which might be say 1000 dollars. So you will end up paying interest for 96K. So there is catch with the 5% deposit plans. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 7, 2013 Share Posted November 7, 2013 Why not? They're young enough. Most people do it and have a great life. The house is something that you can be proud of, do stuff to, feel secure in, entertain family and friends, bring up kids. If they go up in value all the better, if they go down you've had somewhere nice to live all those years and you eventually end up owning it. Because a lot do something doesn't mean it's the best thing the do in such times. It gets around to how one wants to spend their life. Working to pay an over priced asset may not be everyone's ideal of a life well lived. Link to comment Share on other sites More sharing options...
Paul1Perth Posted November 8, 2013 Share Posted November 8, 2013 Once I would have agreed, not so sure now!! Perth IS expensive that's a fact, properties are expensive, I still get that nauseous feeling when I think about house prices, we could comfortably get a $2 mil mortgage here but in reality we wouldn't sleep a wink and we would have no quality of life and we'd be paying it off for 30 years, it's scary. We didn't have the good fortune to arrive in the 80's early 90's and buy the 'dream' we arrived 3 years ago when the price of property was a bit of a shocker to say the least!! I think today, it's just being smart about location and being realistic about the house. If you want to live in the Western burbs your going to pay top dollar, even 'shacks' go for a premium! We've gone for a 3 by 1 for $500k 2 KM's from Freo (where we just love) and 0.5km's from the beach as the crow flys and have decided to renovate, we figure the location has to be a winner long term given the population increase in Perth over the next 10 years or so, but if not, we've got a big block with a proper garden and pool, the house is an ongoing project but we will eventually have the 'dream' house and be mortgage free, we can see the light at the end of the tunnel! I take my Daughter to school every day in Mosman park, it takes me 10-15 mins Max, I look at the houses as I drive there, I dream,but the reality is we'd get a house there for a 3rd of our block size and 3 times the price. And on a final note, we rented in South Beach when we landed and got burgled while we slept, they cleared us out and drove off with the goodies in our car! Where we are now, we have the most awesome neighbors, the street has such a family and friendly feel, everyone looks out for each other and we feel so so safe, all in all we feel we made a good long term choice! If you can comfortably get a 2 Mill mortgage I don't see your problem or worries. For 2 Mill you could get a house in just about any of the nicest, most expensive suburbs in Perth. Move a bit further up or down the coast or in land and you could have a mansion that would be beyond your wildest dreams in the UK. Is Perth expensive? As my other post said compare like for like with Sydney and possibly Melbourne and it's not. Could say the same about like for like with the UK but I wouldn't know where to compare. I've had a look around Bournemouth as that is about as close to a nice seaside town with a decent beach I could think of and Perth looks pretty cheap compared to there too. We arrived here in 92 but have never been in a position where we could get anywhere near a 2Mill mortgage. Still way out of our price range and even at $800,000 we would be struggling and not able to sleep a wink, like you say. We would have a selection of some really nice properties in some very good suburbs for that sort of money though. You could halve your 2Mil mortgage and get a great property with pool, plenty of parking, land, nice suburb. Anyone who comes out here even now and can get that sort of mortgage is laughing. Why worry about having 25 or 30 years to pay it back? That's going to be the case wherever you live. Sorry, wrote all the above bit having read only the first half of your post. Sounds like you have made a wise choice and I wouldn't say $500k for a house in the position you've got is expensive. It will look like a bargain in 10 years. Link to comment Share on other sites More sharing options...
Phoenix16 Posted November 9, 2013 Share Posted November 9, 2013 If you can comfortably get a 2 Mill mortgage I don't see your problem or worries. For 2 Mill you could get a house in just about any of the nicest, most expensive suburbs in Perth. Move a bit further up or down the coast or in land and you could have a mansion that would be beyond your wildest dreams in the UK. Is Perth expensive? As my other post said compare like for like with Sydney and possibly Melbourne and it's not. Could say the same about like for like with the UK but I wouldn't know where to compare. I've had a look around Bournemouth as that is about as close to a nice seaside town with a decent beach I could think of and Perth looks pretty cheap compared to there too. We arrived here in 92 but have never been in a position where we could get anywhere near a 2Mill mortgage. Still way out of our price range and even at $800,000 we would be struggling and not able to sleep a wink, like you say. We would have a selection of some really nice properties in some very good suburbs for that sort of money though. You could halve your 2Mil mortgage and get a great property with pool, plenty of parking, land, nice suburb. Anyone who comes out here even now and can get that sort of mortgage is laughing. Why worry about having 25 or 30 years to pay it back? That's going to be the case wherever you live. Sorry, wrote all the above bit having read only the first half of your post. Sounds like you have made a wise choice and I wouldn't say $500k for a house in the position you've got is expensive. It will look like a bargain in 10 years. Don't think I articulated myself very well in my original post, many apologies!!! The bank would lend us 2 Mil but OMG that doesn't really mean we could afford it. Fresh of the plane you can get seduced with the houses, the lifestyle etc it's so different to UK but a year renting is a good grounding, gives you time to get over the excitement and get a reality check!! I think we made the right choice, it's a long term investment and were in it for the long term, not looking to make a profit just hoping to eventually end up with the house that works for us via renovations, hoping we were smart long term about the location and hoping to pay the mortgage off in a lot less than 30 years whilst having enough spare change to enjoy life here and enjoy this wonderful country exploring in the camper trailer! Link to comment Share on other sites More sharing options...
Peach Posted November 9, 2013 Share Posted November 9, 2013 Because a lot do something doesn't mean it's the best thing the do in such times. It gets around to how one wants to spend their life. Working to pay an over priced asset may not be everyone's ideal of a life well lived. Absolutely true. But who wouldn't eventually love to live mortgage free and retire without paying rent until they croak? Mortgage as a percentage of income does go down over time, whereas rents creep ever up..... Link to comment Share on other sites More sharing options...
dxboz Posted November 9, 2013 Share Posted November 9, 2013 Jessie what area did you buy in? Link to comment Share on other sites More sharing options...
Phoenix16 Posted November 9, 2013 Share Posted November 9, 2013 Jessie what area did you buy in? Hamilton Hill, manning park precinct they call the part were at! we overlook the park and awesome views! Fabulous neighbors, everyone seems to look out for each other, real community feeling, love it here xxxx Link to comment Share on other sites More sharing options...
gpo1971 Posted November 10, 2013 Share Posted November 10, 2013 Just as a side comment; anyone in the UK thinking about moving to Mandurah, the house prices there haven't gone down 28%, they've probably gone up 10% this year. So, don't move to Australia based on that advice. Link to comment Share on other sites More sharing options...
flag of convenience Posted November 10, 2013 Share Posted November 10, 2013 Absolutely true. But who wouldn't eventually love to live mortgage free and retire without paying rent until they croak? Mortgage as a percentage of income does go down over time, whereas rents creep ever up..... Just as house prices don't necessary constantly creep ever upwards. Look at USA or Ireland and a host of others. Rents do give flexibility to make any number of decisions. Life is surely more than a mortgage to pay until near the grave these days. Not forgetting all that entails. In days past the decision was far easier. Especially nerving for those paying off an over valued asset after a price correction. Perth down the road all too ready for such a thing with so much in one basket. Link to comment Share on other sites More sharing options...
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