buying or renting - pros and cons - Page 2

Go Back   Living and Working in Australia Forum With Immigration and Travel Information > Living in Australia > Housing

Housing Buying a house in Australia? Want to rent a place? Use this section to discuss anything about the real estate market in Australia. Talk about the procedures and the current state of Australian property market with members that may have more experience with Real Estate in your region.

buying or renting - pros and cons - Page 2


Reply
 
LinkBack Thread Tools
  #11 (permalink)  
Old 08-09-2012, 12:02 AM
Senior Member
 
Join Date: Apr 2012
Posts: 199
Users Flag! From portugal

20 likes received
12 likes given
Quote:
Originally Posted by chifin
Here are some fun calculations to try out.

Take your weekly rent and multiply by 830. That is the purchase price of the property you can afford.
Take your weekly rent and multiply by 44. That's the approximate fees it will cost on top of the purchase price.
The above would work for you, if you have your weekly rent multiplied by 175 in cash savings as your deposit on the property.

Eg.

$300 per week rent.
= $300 x 830
= $249,000 house purchase price

Fees to complete purchase...
= $300 x 44
= $13,200

You will need saved cash (for deposit) of :
= $300 x 175
= $52,500

Your bank loan will be :
= $300 x 700
= $210,000
= ~$300 per week repayments

Eg. Another example :

$425 per week rent.
= $425 x 830
= $352,750 house purchase price

Add fees to purchase...
= $425 x 44
= $18,700

You will need saved cash (for deposit) of :
= $425 x 175
= $74,375

Your bank loan will be :
= $425 x 700
= $297,500
= ~$425 per week repayments

---------------------------------------------
The above is a bit of fun in numbers and works in the current market, based on following :

As you are paying your rent, I have assumed you would have an income to satisfy the banks requirements.
Bank loan interest of 6.3%
Deposit savings of 20%, hence a loan of 80% of the purchase price + fees.
Assumes 5% in fees on top purchase price.
Repayments are weekly, principle and interest, over 30 year term.

If you want an Excel sheet with the above easy calculations, just message me.

Ps : it's late... I hope I entered the above numbers correctly... Sorry if any errors!

Cheers
Mark
This great chifin!
Thank you for sharing

Will definitely be using this in the future.

__________________

Reply With Quote
  #12 (permalink)  
Old 08-09-2012, 08:14 PM
Active Member
 
Join Date: Aug 2011
Posts: 6
Please update your flag here .

Dear all

Any idea after how long after logging into australia i can apply for a home loan I have been granted RP visa recently and I am intending to buy an apartment ASAP.

Many thanks for your kind inputa


Reply With Quote
  #13 (permalink)  
Old 08-10-2012, 01:14 AM
Active Member
 
Join Date: Sep 2011
Location: Perth, Western Australia
Posts: 31
Users Flag! From australia

1 likes received
Sakkoub,
If you have PR status in Australia, then generally you can get a loan from the bank... Although it may depend on which sub-class Visa you're on (if you are).

If you see my earlier post, you will see some quick-calculations to work out what you can afford.
The bank will want to know lots more info before they give a loan.

Your income (eg. Are you still on probation in your job, is it permanent full-time, annual salary, etc)
Your debts/expenses (eg. Credit card limits, store cards, personal loans, car loans, etc)
Your relationship status (eg. Single, married, with child, etc)
Your savings (eg. How much cash do you have to buy a house?)

All the above (and more) can go into the decision to lend you money, and how much.

You're welcome to contact me directly, and I can go through in more detail if you want.

Cheers,
Mark


Reply With Quote
 
  #14 (permalink)  
Old 08-10-2012, 02:11 AM
Active Member
 
Join Date: Aug 2011
Posts: 6
Please update your flag here .

Quote:
Originally Posted by chifin
Sakkoub,
If you have PR status in Australia, then generally you can get a loan from the bank... Although it may depend on which sub-class Visa you're on (if you are).

If you see my earlier post, you will see some quick-calculations to work out what you can afford.
The bank will want to know lots more info before they give a loan.

Your income (eg. Are you still on probation in your job, is it permanent full-time, annual salary, etc)
Your debts/expenses (eg. Credit card limits, store cards, personal loans, car loans, etc)
Your relationship status (eg. Single, married, with child, etc)
Your savings (eg. How much cash do you have to buy a house?)

All the above (and more) can go into the decision to lend you money, and how much.

You're welcome to contact me directly, and I can go through in more detail if you want.

Cheers,
Mark
Dear mark
Many thanks for your kind prompt reply on my concerns, your calculations are really very useful and will help me alot on expecting the amount of money required.
Actually I am coming with my wife as she is sponsored by her brother in aus, we are on visa class 176, based on ur inputs it seems i should try to push for the maximum down payment if i want to get a separate house as based on my initial searchs it costs around 600k.

Many thanks again bro, have a great day.
Cheers .


Reply With Quote
  #15 (permalink)  
Old 08-10-2012, 03:10 AM
Active Member
 
Join Date: Sep 2011
Location: Perth, Western Australia
Posts: 31
Users Flag! From australia

1 likes received
Sakkoub,
The figures I gave in the examples are based on 80% loan against the cost of the house (+ fees). Banks will lend higher amounts, so you need less 'savings' up front. Trouble is, you 'save for it now' or you 'pay for it during your loan'. For example, if you could save $20,000 over 12 months you could use those funds when you try buy a house. Or if you borrow more from the bank today, they may charge you a fee (LMI = insurance payment) of $5,000 to $10,000, which gets added to the loan and you end up paying for it for 30 years. It is essentially wasted money, but, it does allow you choices today, which may be more important.
Cheers,
Mark


Reply With Quote
  #16 (permalink)  
Old 01-24-2013, 08:34 PM
Active Member
 
Join Date: Sep 2011
Posts: 5
Users Flag! From oman

Buy property before move

Hi ,
i got PR and planning to move by the end of 2013.

Is it possible for me to buy a property - apartment/ house - while i am outside Aus ? Are their any agencies who can assist me on this, in my absence?

Will any bank give me a home loan, while i am outside Aus ??


Reply With Quote
  #17 (permalink)  
Old 01-25-2013, 10:00 PM
Moderator
 
Join Date: May 2010
Location: Sydney
Posts: 686
Users Flag! From australia

54 likes received
1 likes given
I doubt a bank will give you a loan when you are outside Australia and don't have a local job.

They usually look for people who have been in their current Australian job for at least 2 years.


Reply With Quote
  #18 (permalink)  
Old 02-22-2013, 03:03 PM
Active Member
 
Join Date: Oct 2012
Posts: 11
Users Flag! From australia

Rent only if mandatory

Hello,

In my opinion, there are two types of renters:
- those who donít intend to stay in that place/city for a long time (in this case, renting is the best solution)
- those who can't afford to buy without a loan and are afraid of a mortgage

Indeed, mortgage can be scary, because it implies massive amounts of money for something that you get to own after many long years. However, nothing good comes out of this type of mindset. If you plan to rent on the long-term, youíre not putting your money to good use. Think about the possibilities you have once you buy a property: you can make it your home, you can rent it, and constantly invest in it so that it brings more and more capital gains. Owning a property is a guarantee for your futureís security, so Iíd encourage anyone to take this step.

Cheers,
Emil
Sunbuild Invest


Reply With Quote
  #19 (permalink)  
Old 08-28-2016, 04:59 AM
Active Member
 
Join Date: Aug 2016
Posts: 6
Users Flag! From australia

Smile

Quote:
Originally Posted by ardevelopments View Post
If you want to purchase house in Australia then purchase an under development town homes. Looking at a genuine financial investment perspective, development sites have a chance of price appreciation. So buying in the first stage of development will be a good buy and once the development is complete the cost of the same property or house would have shot up.The ARDevelopments Aspect North, Gumtree Woods and Narangba Valley Square is the newest discussion in the town.
Thanks sounds really useful


Reply With Quote
  #20 (permalink)  
Old 08-28-2016, 11:25 AM
Senior Member
 
Join Date: Jul 2015
Location: Australlia
Posts: 2,218
Users Flag! From australia

301 likes received
81 likes given
Buying or Renting? I know people who say both is a good idea.

Personally, if you are young, and can afford to pay a mortgage for 20-25 years, then buying is a great idea.

Renting is a great option if you are 60+ years old, and its too late to buy a house.

Some say that a mortgage will be for more than the 20-25 years that I mentioned.
However, if you repay a mortgage based on what the repayments would be at a sensible interest rate, and increase your payments as wages rise, a 30 year mortgage can be cleared in 20 years.

The average mortgage in 1990 was $71,000 at 17% interest rates.
The average wage was $523.60 and mortgage payments made up 45% of income.

By 2007, with average weekly earnings of $1071.70, the repayments were only 22%
By 2015, its down to 16%.

But rent, which rises each year, is still 30-40% of an individual income.

But, be very wary of relying on repayments quoted today at the very low interest rates, these rates WILL rise, and repayments will not be as easy.

__________________
22/06/15 PMV Application (Philippines) - 17/08/15 Medical and NBI
20/08/15 Applied for 1yr Tourist Visa - 24/09/15 Tourist Visa Granted - 06/10/15 Flew to Australia
16/02/16 Told to leave Australia for Grant decision - 11/03/16 Flew to Vanuatu for 7 days.
14/03/16 PMV granted - 18/03/16 Returned to Australia
14/05/16 820 Lodged
18/08/16 820 Granted
801 Eligibility: 14/05/18
Citizenship Eligibility: 06/10/19 (estimated)

Reply With Quote
Reply

Tags
residential properties in queensland

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Renting/Buying in Canberra birder Housing 5 12-16-2013 04:02 PM
Perth or Melbourne? pros & cons please. Lila & Camine New member introductions 2 01-14-2013 07:13 AM
Renting/buying in sydney CL Sin Housing 3 12-13-2011 06:21 PM
MINING ENQUIRY - Jobs,Salary,Accomodation,Work Pros and Cons,Career?Traineeship? slim78 Jobs and work 0 11-09-2010 02:01 PM

LEGAL NOTICE
By using this Website, you agree to abide by our Terms and Conditions (the "Terms"). This notice does not replace our Terms, which you must read in full as they contain important information. You must not post any defamatory, unlawful or undesirable content, or any content copied from a third party, on the Website. You must not copy material from the Website except in accordance with the Terms. This Website gives users an opportunity to share information only and is not intended to contain any advice which you should rely upon. It does not replace the need to take professional or other advice. We have no liability to you or any other person in respect of any content on this Website.


All times are GMT. The time now is 06:12 PM.




Powered by vBulletin®
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
SEO by vBSEO
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2017 DragonByte Technologies Ltd.
AustraliaForum.com