Buying in 6 months time

A

annielee

Hi,

I am new to the forum and need some advise.

Just started a new contract role (Jan 2013), resigned from permanent full time position, and i just have about $15k savings only now.

My concerns is, since i just changed job, i need to wait for another 6 months in order to get a loan, and i should have about $45k by then (only spend on the necessity)

I am wondering will it be advisable to buy a land now somewhere $150k (hoping it appreciate after 6 months) then build or get a loan when i qualify for it ? but i guess i will not be able to get a 'land loan' due to my situation, if im not wrong..

Meaning i can think about buying only in June or July. am i right ? Sorry if this sounds silly, been reading a lot of posts and kinda confused..

Thanks in advance.
 
If you've previously had roles in the same field as your current contract and you can show a solid employment history, you don't need to wait 6 months in your current job. There are lenders who have no problem with lending to contractors.

Of more pressing concern would be the amount of funds you've got available right now for the deposit. With your employment scenario you'd probably want to look at a 90% lend or lower and you have to cover stamp duty and other purchase costs. As a basic rule of thumb you'll probably need at least 15% of the purchase price available to cover all this.

Your plan of buying land and waiting for it to go up in value has some merit, but realistically I doubt it will go up in enough value within 6 months to build. You might be better off spending some time saving more and researching strategies further in the meantime.
 
hopefully the price wont gone up much in 6 months time..

as btw, im not young, mid 30s, which is why im kinda in a rush to get into the market now..
 
You can even buy now if the right property pops up. You don't have any defaults do you? Get your banker or broker to tell you how much you can borrow.

BTW haven't you heard - mid 30's is the new 20's.

Regards

Shahin
 
no loans/defaults at all.. but im in a surprise state, as i tried to apply for a minimum limit ($2k) credit card, and got denied which i dont understand.. and i did request for a credit file, and couldnt find anything interesting, just 10 queries from 2009 till now.. so not sure why my my credit card application got denied.. :)

so if let say with my $20k (by end of next month) and if i found a property about $350k, i can get a loan based o my scenario ?

TheFinanceShop said:
You can even buy now if the right property pops up. You don't have any defaults do you? Get your banker or broker to tell you how much you can borrow.

BTW haven't you heard - mid 30's is the new 20's.

Regards

Shahin
Click to expand...
 
If you want to buy something for $350k and are not eligible for grants then you need a minimum of $35k and thats @ a 95% lend. At a 95% lend you need to ensure the application is strong in different aspects. I would need a hell of lot more details for a 95% lend.

Regards

Shahin
 
i believe u r referring to FHG ? im pretty sure im eligible, since this will be my 1st property..

TheFinanceShop said:
If you want to buy something for $350k and are not eligible for grants then you need a minimum of $35k and thats @ a 95% lend. At a 95% lend you need to ensure the application is strong in different aspects. I would need a hell of lot more details for a 95% lend.

Regards

Shahin
Click to expand...
 
annielee said:
no loans/defaults at all.. but im in a surprise state, as i tried to apply for a minimum limit ($2k) credit card, and got denied which i dont understand.. and i did request for a credit file, and couldnt find anything interesting, just 10 queries from 2009 till now.. so not sure why my my credit card application got denied.. :)

so if let say with my $20k (by end of next month) and if i found a property about $350k, i can get a loan based o my scenario ?
Click to expand...

The impression that I'm getting is that you're rushing things. I know you really want to get into the market desperately, and I know how you feel (I'm in the same boat - only around 13K in savings) - but after doing some reading and with some help from other members on here I've realized investing in property is a big deal. It SHOULD take some time.

Patience and discipline are two key things I've been working on. Impatience could cause you to dive into something that is a money pit, or you could end up with your cash and equity tied up in something that is half as good as an opportunity that arises had you just taken your time.

If you're a newbie (like I am) read, read, read. You're on the right track by joining these forums, but pick up some ABC's of RE Investing or "For Dummies" type books and you're on your way.

I've learned loads of valuable information in just over 2 weeks by educating myself, which has made me realise to be patient, chip away at my savings and hone my investment skills so that in around 6 months time (like yourself) i'll be in a position to make a solid 1st investment.

LEARN before you EARN.

Sorry for the long post, it's just a lot of what you're saying resonates with me because I feel i'm in a very similar position to you.

Good luck!
 
thanks for your advise, im looking for advise and of course try to rush into buying.. just want to ensure i do the right thing now (dont change job again !) till i can buy in 6 months time.. and im not into investing, im thinking to buy my PPOR.. doubt i can even invest my with age and the amount of money i got :)

azzae89 said:
The impression that I'm getting is that you're rushing things. I know you really want to get into the market desperately, and I know how you feel (I'm in the same boat - only around 13K in savings) - but after doing some reading and with some help from other members on here I've realized investing in property is a big deal. It SHOULD take some time.

Patience and discipline are two key things I've been working on. Impatience could cause you to dive into something that is a money pit, or you could end up with your cash and equity tied up in something that is half as good as an opportunity that arises had you just taken your time.

If you're a newbie (like I am) read, read, read. You're on the right track by joining these forums, but pick up some ABC's of RE Investing or "For Dummies" type books and you're on your way.

I've learned loads of valuable information in just over 2 weeks by educating myself, which has made me realise to be patient, chip away at my savings and hone my investment skills so that in around 6 months time (like yourself) i'll be in a position to make a solid 1st investment.

LEARN before you EARN.

Sorry for the long post, it's just a lot of what you're saying resonates with me because I feel i'm in a very similar position to you.

Good luck!
Click to expand...
 
I would visit a broker now and see if you can get their help to work out why you were denied for the small credit card as a denial there will impact your ability to get a home loan.

Get their advice on how much you can borrow with your deposit and grants now . Then also a scenario where you save for 6mths.

Then work out based on your budget and work/family/friends location where you might want to live and in what. As a single you might only want to live in a villa rather than a house.
 
Make sure you plan for the worst case scenario - i.e. the maximum you are looking to purchase and the minimum you can contribute from a finance perspective.

Regards

Shahin
 
any broker here care to give free consultation service based on my scenario ?

westminster said:
I would visit a broker now and see if you can get their help to work out why you were denied for the small credit card as a denial there will impact your ability to get a home loan.

Get their advice on how much you can borrow with your deposit and grants now . Then also a scenario where you save for 6mths.

Then work out based on your budget and work/family/friends location where you might want to live and in what. As a single you might only want to live in a villa rather than a house.
Click to expand...
 
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