Ausimi Posted May 24, 2021 Share Posted May 24, 2021 (edited) How easy is to get a mortgage? How much deposit do you usually need? I’m aware it would much depends on individual circumstances, but generally speaking? here in UK we always had the idea of selling the glumly 3 bedroom terrace and buying a 5 bedroom detached with a swimming pool near the beach!!! I guess those days are over!!! Edited May 24, 2021 by Ausimi Quote Link to comment Share on other sites More sharing options...
Lavers Posted May 24, 2021 Share Posted May 24, 2021 Just now, Ausimi said: How easy is to get a mortgage? How much deposit do you usually need? I’m aware it would much depends on individual circumstances, but generally speaking? You can borrow upto 95% of the home value, although if you borrow more than 80% then you pay an insurance to the bank. If you go on realestate.com.au there is a calculator there which you can play about with and give you an idea of what fees you will pay 1 Quote Link to comment Share on other sites More sharing options...
Blue Flu Posted May 24, 2021 Share Posted May 24, 2021 21 hours ago, newjez said: Perth has always been boom bust. With employment and house prices. Yes I am aware of that. But will always pay a price for such instability. Far too reliant on minerals, especially iron ore, that when the down turn in ore demand from China comes, it will be painful. 1 Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted May 25, 2021 Share Posted May 25, 2021 On 01/05/2021 at 07:19, palaceboy1 said: We are just moving to a retirement village in Mullaloo as the fast rise in house prices would push us further north to get a property that would suit us . The big pull for us to move over was to be in close proximity to our grandchildren and 2 km rather than 30km is the clincher . The amount saved initially on purchase price will pay the management fees and give plenty of equity to live comfortably , I realise the final exit fees make up the cost and have explained this to our family who are more than happy to have us close If it's the one on Dampier Ave that's a great spot. Years ago they had an open day and we were walking by. We went in for a look, they have a pool, gym, nice bar area with a pool table, dart board. The properties look nice, well kept and plenty of room. Some are big enough to have caravans or boats parked up. I think a lot who live there take off in their vans at this time of year and head North for a few months. The development is in a really handy spot, nice and quite but easy walking distance to Whitfords and 10 minutes walk to the beach. Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted May 25, 2021 Share Posted May 25, 2021 On 20/05/2021 at 13:29, Johndoe said: It's a shame about Perth and I feel for folk who got in a while ago during the boom but my old memory brings me back to the usual suspects 10yrs ago on this forum always preaching that the bubble would burst. Perhaps it has for a Perth but I think those doom and gloomers may have a while to wait yet for the other capitals to cop it. The bubble never really burst in Perth JD. Prices went down a little and then just stabilised. They are on the move now and I reckon they'll continue. A lot of people have had a rethink after Covid and Perth looks like a good move for a lot of people that wouldn't have considered it before. 1 Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted May 25, 2021 Share Posted May 25, 2021 18 hours ago, Ausimi said: How easy is to get a mortgage? How much deposit do you usually need? I’m aware it would much depends on individual circumstances, but generally speaking? here in UK we always had the idea of selling the glumly 3 bedroom terrace and buying a 5 bedroom detached with a swimming pool near the beach!!! I guess those days are over!!! How much would you get for the 3 bed terrace and how much do you owe on it? My friend moved from a terraced house in Windsor, bought a 4 x2 property with a pool, near the beach and had money over that let him buy investment property. Quote Link to comment Share on other sites More sharing options...
newjez Posted May 25, 2021 Share Posted May 25, 2021 4 hours ago, Blue Flu said: Yes I am aware of that. But will always pay a price for such instability. Far too reliant on minerals, especially iron ore, that when the down turn in ore demand from China comes, it will be painful. I would be expecting a sharp upturn for a year, and then a sharp downturn. As long as you don't buy at the top you should be right. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted May 25, 2021 Share Posted May 25, 2021 3 hours ago, Paul1Perth said: The bubble never really burst in Perth JD. Prices went down a little and then just stabilised. They are on the move now and I reckon they'll continue. A lot of people have had a rethink after Covid and Perth looks like a good move for a lot of people that wouldn't have considered it before. I think it did. We lost 100k in projected valuatuon in 5 years. Quote Link to comment Share on other sites More sharing options...
Blue Flu Posted May 25, 2021 Share Posted May 25, 2021 Prices declined from memory the most in capital cities within Australia. It was the ALP McGowan intervention that turned the market . Later resource price rises added further stimulation to an already overstimulated market. Prices will only maintain present trend while prevailing conditions allow. The price of iron and probably other resources will decline from present highs rather substantially. Interest rates may well be forced upwards before many anticipate. With falling prices in the resource sector, immigration will probably not be the levels wanted by the industry to inflate figures to mouth watering levels (thankfully) One thing for certain. Care should be taken around placing too much emphasis on the housing market. Those in doubt should recall recent losses, that could have been far worse. Without work, Perth will hardly be a desired place to move to. 1 Quote Link to comment Share on other sites More sharing options...
newjez Posted May 25, 2021 Share Posted May 25, 2021 6 hours ago, Blue Flu said: Prices declined from memory the most in capital cities within Australia. It was the ALP McGowan intervention that turned the market . Later resource price rises added further stimulation to an already overstimulated market. Prices will only maintain present trend while prevailing conditions allow. The price of iron and probably other resources will decline from present highs rather substantially. Interest rates may well be forced upwards before many anticipate. With falling prices in the resource sector, immigration will probably not be the levels wanted by the industry to inflate figures to mouth watering levels (thankfully) One thing for certain. Care should be taken around placing too much emphasis on the housing market. Those in doubt should recall recent losses, that could have been far worse. Without work, Perth will hardly be a desired place to move to. This is an unprecedented time. So much money has been injected into the world's economy. I've seen many projections. Not many of them have pleasant endings. The chances of sailing through this with any form of stability are remote. If I was going to buy a house I would buy it now. If I couldn't afford it for a year, I would bide my time. 1 Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted May 27, 2021 Share Posted May 27, 2021 On 25/05/2021 at 15:20, HappyHeart said: I think it did. We lost 100k in projected valuatuon in 5 years. If you were only moving in WA it wouldn't have affected you at all though, the house you were moving to would have dropped by the same %. You don't really "lose" money unless you cash it in and move back to the UK or something. You always need a place to live and I've never thought of property as an investment. We were lucky in the UK when we bought and sold when we emigrated. We bought a terrace house for 20,000 pounds, spent a lot doing it up over about 3 years and when we sold it privately we got 50,000 for it, which paid for us to emigrate. Shear luck though, we had come to the time in life when we needed a house, we couldn't have predicted which way the market would go. 1 Quote Link to comment Share on other sites More sharing options...
Blue Flu Posted May 28, 2021 Share Posted May 28, 2021 On 26/05/2021 at 01:12, newjez said: This is an unprecedented time. So much money has been injected into the world's economy. I've seen many projections. Not many of them have pleasant endings. The chances of sailing through this with any form of stability are remote. If I was going to buy a house I would buy it now. If I couldn't afford it for a year, I would bide my time. Very slim indeed. I wouldn't buy a house at the moment in Perth anyway. Checked out Cairns recently and contacted agent. Great place and reasonably price right on the beach at Palm Cove. Crime explosion in Cairns has put me off somewhat, even though Palm Cove is possibly the best suburb and quite far enough from town. (have a drug meth cooking crisis around me here in Leederville. way over it) But houses in my area have wildly fluctuated. Over $100,000 between pretty much identical houses over the course of several months. Now up even far more. Crazy. Will end in tears, but hey rinse and repeat. Pretty much the WA way. 1 Quote Link to comment Share on other sites More sharing options...
Blue Flu Posted May 28, 2021 Share Posted May 28, 2021 On 27/05/2021 at 11:41, Paul1Perth said: If you were only moving in WA it wouldn't have affected you at all though, the house you were moving to would have dropped by the same %. Only if all prices fell by the same amount. Not necessarily. It was not uniform. Some fell far more than others. Quote Link to comment Share on other sites More sharing options...
Blue Flu Posted May 28, 2021 Share Posted May 28, 2021 On 24/05/2021 at 16:33, Ausimi said: How easy is to get a mortgage? How much deposit do you usually need? I’m aware it would much depends on individual circumstances, but generally speaking? here in UK we always had the idea of selling the glumly 3 bedroom terrace and buying a 5 bedroom detached with a swimming pool near the beach!!! I guess those days are over!!! Way over by a few decades. Australia is expensive. For example I know of a nurse and a policeman from UK, that returned home as even on their salary buying a house that suited requirements, was impossible to get in Melbourne. They went back after three years, her (nurse) to less money but glad to be back . Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted May 28, 2021 Share Posted May 28, 2021 On 27/05/2021 at 11:41, Paul1Perth said: If you were only moving in WA it wouldn't have affected you at all though, the house you were moving to would have dropped by the same %. You don't really "lose" money unless you cash it in and move back to the UK or something. You always need a place to live and I've never thought of property as an investment. We were lucky in the UK when we bought and sold when we emigrated. We bought a terrace house for 20,000 pounds, spent a lot doing it up over about 3 years and when we sold it privately we got 50,000 for it, which paid for us to emigrate. Shear luck though, we had come to the time in life when we needed a house, we couldn't have predicted which way the market would go. Kind of different for our situation. We bought a piece of land 2 years ago at a very good price which has increased in value quite significantly. Now building a small.modest home on that land to be our eventual permanent abode. Meantime we keep our first property for next few years till we are ready to move. At that point hoping to have significant equity enabling large chunk of 'new' mortgage to be paid off. Thus resulting in much smaller mortgage and ability to go part time/kick back a little in our 50s. That's the plan anyway! Will see what happens. 1 Quote Link to comment Share on other sites More sharing options...
newjez Posted May 28, 2021 Share Posted May 28, 2021 9 hours ago, HappyHeart said: Kind of different for our situation. We bought a piece of land 2 years ago at a very good price which has increased in value quite significantly. Now building a small.modest home on that land to be our eventual permanent abode. Meantime we keep our first property for next few years till we are ready to move. At that point hoping to have significant equity enabling large chunk of 'new' mortgage to be paid off. Thus resulting in much smaller mortgage and ability to go part time/kick back a little in our 50s. That's the plan anyway! Will see what happens. Are you having troubles getting building materials? My nephew is building and has had a few problems. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted May 30, 2021 Share Posted May 30, 2021 On 29/05/2021 at 03:48, newjez said: Are you having troubles getting building materials? My nephew is building and has had a few problems. The build is due to start end of next month and haven’t heard of any delay but expect there to be some. Quote Link to comment Share on other sites More sharing options...
Wanderer Returns Posted May 30, 2021 Share Posted May 30, 2021 (edited) On 24/05/2021 at 18:33, Ausimi said: How easy is to get a mortgage? Very easy, based on my recent experience. I've just borrowed $500,000, which is 5 times my salary at the drop of a hat. Like that would ever happen in the UK! Mortgage took about 2 weeks from application to pre-approval. No chance I'll ever pay it all back as I'll be 84 by then, so I'm just renting from the bank really. Not saying it's a good thing, but the whole country seems to running on one enormous line of credit at the moment. ScoMo must have a printing press under his bed, or a magic money tree somewhere! How much deposit do you usually need? You can get away with as little as 5%, but under 20% and you'll need to pay LMI (it's an insurance), which is an unnecessary expense in my opinion. ...here in UK we always had the idea of selling the glumly 3 bedroom terrace and buying a 5 bedroom detached with a swimming pool near the beach!!! I guess those days are over!!! No, it's actually still achievable depending where your glumly 3 bedroom terrace is located in the UK. If it's London/SE then you could easily buy a decent-size home on the coast in regional QLD or NSW. That said, if you're from London/SE then you'll probably want to move to a major city, not regional Australia Edited May 30, 2021 by Wanderer Returns 2 Quote Link to comment Share on other sites More sharing options...
newjez Posted May 30, 2021 Share Posted May 30, 2021 5 hours ago, HappyHeart said: The build is due to start end of next month and haven’t heard of any delay but expect there to be some. I would order anything that needs to be imported as early as is practical. Locally sourced goods should be fine. Quote Link to comment Share on other sites More sharing options...
Blue Flu Posted May 30, 2021 Share Posted May 30, 2021 (edited) 20 minutes ago, Wanderer Returns said: Quite right Wanderer. We were in discussion with an agent a few weeks ago with regards a house in Cairns (QLD) A house that ticked all the boxes, great swimming pool, very short walk to beach, cafes, etc in one of that city's better northern beach locations (Palm Cove) could have been bought for well under $800,000. What I did find disconcerting in the apparent crime wave inflicting Cairns and FNQ. Decided to hold out and further search for options. But the point being, as you wrote, such houses in out of big city locations are indeed available. Oh, work for those seeking it could pose a problem in a place like Cairns, with very high unemployment. As for 5% deposits to purchase only required, means we are heading into 'troubled waters' come the interest rate rising. More baked beans on toast (as a treat) for many, when the economic reality becomes just that. Edited May 30, 2021 by Blue Flu 2 Quote Link to comment Share on other sites More sharing options...
Lavers Posted May 30, 2021 Share Posted May 30, 2021 (edited) 1 hour ago, Blue Flu said: Quite right Wanderer. We were in discussion with an agent a few weeks ago with regards a house in Cairns (QLD) A house that ticked all the boxes, great swimming pool, very short walk to beach, cafes, etc in one of that city's better northern beach locations (Palm Cove) could have been bought for well under $800,000. What I did find disconcerting in the apparent crime wave inflicting Cairns and FNQ. Decided to hold out and further search for options. But the point being, as you wrote, such houses in out of big city locations are indeed available. Oh, work for those seeking it could pose a problem in a place like Cairns, with very high unemployment. As for 5% deposits to purchase only required, means we are heading into 'troubled waters' come the interest rate rising. More baked beans on toast (as a treat) for many, when the economic reality becomes just that. As long as the beans are heinz then I'm good . Anyone (in UK) especially who has bought there 1st house within the last 10yrs will have a big shock when interest rates do finally begin to rise. When that is no one knows, if they rise sharply then repossessions go up which the gov won't want. Regarding only having 5% deposit, unfortunately for 1st time buyers that will be the best they can hope for. The rate in which prices are going up, you would still be better getting a house with a 5% deposit, as the price would go up quicker than you can save. Edited May 30, 2021 by Lavers 1 Quote Link to comment Share on other sites More sharing options...
newjez Posted May 30, 2021 Share Posted May 30, 2021 6 hours ago, Lavers said: As long as the beans are heinz then I'm good . Anyone (in UK) especially who has bought there 1st house within the last 10yrs will have a big shock when interest rates do finally begin to rise. When that is no one knows, if they rise sharply then repossessions go up which the gov won't want. Regarding only having 5% deposit, unfortunately for 1st time buyers that will be the best they can hope for. The rate in which prices are going up, you would still be better getting a house with a 5% deposit, as the price would go up quicker than you can save. I would want to read the small print on the mortgage pretty carefully. Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted May 31, 2021 Share Posted May 31, 2021 On 28/05/2021 at 18:15, HappyHeart said: Kind of different for our situation. We bought a piece of land 2 years ago at a very good price which has increased in value quite significantly. Now building a small.modest home on that land to be our eventual permanent abode. Meantime we keep our first property for next few years till we are ready to move. At that point hoping to have significant equity enabling large chunk of 'new' mortgage to be paid off. Thus resulting in much smaller mortgage and ability to go part time/kick back a little in our 50s. That's the plan anyway! Will see what happens. We have some friends who sold a beautiful house in Ocean Reef and have a plot in Eden Beach. They sold the house but luckily have a another property they can live in. They have the pad down at Eden Beach but the building company can't get brickies now, so everything is delayed. They got the government grants too which helped them out a lot. Your plan seems pretty sound. I'd definitely recommend 4 and 3 days a week before retirement, if your employer will let you do it. Great way to ease into it. Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted May 31, 2021 Share Posted May 31, 2021 17 hours ago, Blue Flu said: Quite right Wanderer. We were in discussion with an agent a few weeks ago with regards a house in Cairns (QLD) A house that ticked all the boxes, great swimming pool, very short walk to beach, cafes, etc in one of that city's better northern beach locations (Palm Cove) could have been bought for well under $800,000. What I did find disconcerting in the apparent crime wave inflicting Cairns and FNQ. Decided to hold out and further search for options. But the point being, as you wrote, such houses in out of big city locations are indeed available. Oh, work for those seeking it could pose a problem in a place like Cairns, with very high unemployment. As for 5% deposits to purchase only required, means we are heading into 'troubled waters' come the interest rate rising. More baked beans on toast (as a treat) for many, when the economic reality becomes just that. Lovely spot Palm Cove. Our bus went through there on our trip back from Port Douglas to Cairns about 5 years ago. Port Douglas is lovely too. It was just getting to the wet season and all the grey nomads we spoke to were planning their moves South. Bit sticky up there and although the ocean looks nice and inviting there's very few times of the year you'd feel safe going for a swim. 1 Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted May 31, 2021 Share Posted May 31, 2021 15 hours ago, Lavers said: As long as the beans are heinz then I'm good . Anyone (in UK) especially who has bought there 1st house within the last 10yrs will have a big shock when interest rates do finally begin to rise. When that is no one knows, if they rise sharply then repossessions go up which the gov won't want. Regarding only having 5% deposit, unfortunately for 1st time buyers that will be the best they can hope for. The rate in which prices are going up, you would still be better getting a house with a 5% deposit, as the price would go up quicker than you can save. I think the same is true for here Lavers. If interest rates rise a lot of people will be in strife quickly. Judging by the relative economies I think there's more chance of interest rates rising here. Are you buying yet? Quote Link to comment Share on other sites More sharing options...
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