Hi there,
I only began saving for my first house deposit in February and have saved $10k to date. I have studied full time since 2007 and I currently work 3 days per week perm part time and earn 60k per year while I complete my PhD. I am currently able to save $900 per fortnight after all my expenses as I live at home with my parents.
I had originally planned on buying my first house early next year as I would have saved a 30-40k as a deposit by then.
2 events have come to light which has caused me to reevaluate this timeline:
1. My grandmother surprised me and generously gave me $20k last week to pay off some of my 70k HECS debt (thanks grandma!). I feel this money would be better put towards my first house deposit to get me into the market while interest rates are as low as they are; and
2. My Dad and uncle who are executors of my grandfathers estate are aware that I am looking to buy a house soon and have offered me to pay market value less $12k commission on the house. The house needs work and they have been quoted $430k as a sale price if they paint and recarpet which has been quoted to cost them $5k. It's a decent house and based on past performance I can expect 6.33% CG per year on average. I could rent it out at at least $450 per week after I live in the house for a year for the first home owner stamp duty concession.
Obviously, I am interested in buying the house as is and doing my own renovation as the renovations would price me out of the market. The problem is that its a long weekend, I have no experience in getting finance and I don't have 5% genuine savings currently as I have only just begun saving. I do however have $30k and parents who would be happy to provide security. I have to let the executors know ASAP as otherwise they are going to do the renovations and then I won't have the opportunity. I feel like it's too good to turn down.
My question is?Would it be possible for me to obtain finance without 5% genuine savings if I have a sufficient deposit and family guarantees etc.
Thanks.
T
I only began saving for my first house deposit in February and have saved $10k to date. I have studied full time since 2007 and I currently work 3 days per week perm part time and earn 60k per year while I complete my PhD. I am currently able to save $900 per fortnight after all my expenses as I live at home with my parents.
I had originally planned on buying my first house early next year as I would have saved a 30-40k as a deposit by then.
2 events have come to light which has caused me to reevaluate this timeline:
1. My grandmother surprised me and generously gave me $20k last week to pay off some of my 70k HECS debt (thanks grandma!). I feel this money would be better put towards my first house deposit to get me into the market while interest rates are as low as they are; and
2. My Dad and uncle who are executors of my grandfathers estate are aware that I am looking to buy a house soon and have offered me to pay market value less $12k commission on the house. The house needs work and they have been quoted $430k as a sale price if they paint and recarpet which has been quoted to cost them $5k. It's a decent house and based on past performance I can expect 6.33% CG per year on average. I could rent it out at at least $450 per week after I live in the house for a year for the first home owner stamp duty concession.
Obviously, I am interested in buying the house as is and doing my own renovation as the renovations would price me out of the market. The problem is that its a long weekend, I have no experience in getting finance and I don't have 5% genuine savings currently as I have only just begun saving. I do however have $30k and parents who would be happy to provide security. I have to let the executors know ASAP as otherwise they are going to do the renovations and then I won't have the opportunity. I feel like it's too good to turn down.
My question is?Would it be possible for me to obtain finance without 5% genuine savings if I have a sufficient deposit and family guarantees etc.
Thanks.
T