Hi, we currently have our property in Matraville, Sydney for sale. Hoping to get within the 900,000 but market not looking that great and now RE saying mid 800's. We are going through a divorce and after the sale of the property, I will need to be getting straight back into the market - as nowhere to live for my kids and I. Our expenses after the sale goes through will be hoping that we get 100,000 each. But in the current eastern suburbs market, the 100,000 will obviously have to be my deposit for another place. I have been looking at townhouses and villa's but they are all going around the 700,000 mark and above. We have a dog and that is why i'm looking to purchase a townhouse or villa - hoping it will be the cheaper option but it's all looking quite scary. I have heard of mortgagee auctions, where the bank just really wants their money for the loan and i was thinking that might be the only way that i might be able to afford to obtain a property. I work in Mascot, NSW and kids go to school at Matraville but am willing to move alittle. Does anyone have any ideas or help in how i find out about who i need to speak to get information of mortgagee auctions in the eastern suburbs in sydney NSW? Our house auction is on the 3rd July and settlement is normally 6 weeks after that but i want to start doing my homework and find out now. Any help would be greatfull to me who is starting to stress about being homeless. The rental market is out of reach for me as i only earn a part time way. Anxiously await any reply's. Thanks
Help needed please
- Thread starter sumasuma
- Start date
So you reckon owning will be within your reach? would mortgage repayments be cheaper than monthly rent payments in the area you're looking?
This is what I was thinking, surely it's cheaper to rent, especially in the Eastern suburbs.
When you own, you will have also have to pay strata fees, maintenance, council rates, etc
Also have to fork out stamp duty and costs on your purchase too, not alot left from 100k.
I think it is a falacity to believe this
In my experience everyone has the same idea and so the auction usually goes for higher than expected.I don't understand. If the rental market is out of your reach, how do you expect to afford to buy something? Renting is a lot cheaper than owning.
Seems to me you would be better off renting, and then buying an investment (which you could eventually then moving into after a few years). At least your interest and expenses will be tax deductible.
They wouldn't be far off a mortgage repayment that's why i would rather pay my own place compared to someone else's place.
Maybe 10 years ago.. These days, it costs way more to buy than rent etc.
Or aren't you telling us about a hidden $300,000 you have sitting in another account to instantly halve the new mortgage??
The other issue is - whilst equity is important (your $100K that you're hoping to get from the sale of the current property) so is income. If you're working part time, will that be enough for the banks to want to lend you a large amount for a mortgage? If you have primary custody then you will be getting some money from your ex, but is this counted as income for the purposes of a home loan? (I seem to recall seeing somewhere that these kinds of payments aren't considered income, but I could be wrong.)
It may be worth your while to speak to a mortgage broker and get some professional advice regarding this. If a mortgage isn't a possibility, you'll need to start looking at other options that are available to you.
It may be worth your while to speak to a mortgage broker and get some professional advice regarding this. If a mortgage isn't a possibility, you'll need to start looking at other options that are available to you.
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Hi Sumasuma,
You're working part-time which banks are likely to say no to financing you - talk to your broker ASAP.
If $100k is barley going to cover a deposit, look for something cheaper!! Move further out, if the Eastern suburbs are too expensive LEAVE. Also if you don't earn a full time wage (unless you're on a great part-time wage?) how are you going to be able to afford repayments? Food? Schooling? Etc.
You have about 2 months on your side, BUT not all vendors will want a short settlement with their property - look NOW! Is there a way to get a deposit sooner?
Look in surrounding areas, now there isn't much under $700k with more than 3 beds near the city, but here's a couple i've found - nothing special but if you're not willing to move much further out (which personally i think you should) it's what you get.
Also, is renting an option, using your $100k to help pay the rent, until you can get finance/work full time/afford something more?
http://www.realestate.com.au/property-house-nsw-marrickville-106498373?activeSort=price-asc
http://www.realestate.com.au/property-house-nsw-marrickville-106537999?activeSort=price-asc
http://www.realestate.com.au/property-townhouse-nsw-croydon-106565361
Now this was with a quick 5 min search, note down your most desirable suburbs near where you are currently and further out and look them up and you can find something - either a rental or something to buy.
Don't forget to take all these costs into mind if you decide to purchase a place - you may find your budget is $700k but you can't afford to pay the extra costs involved when you get to the dotted line.
Remember, there is two parts to a loan - Your deposit AND what the bank deems to be the maximum you can borrow or your serviceability
Great that you may have up to a $100k deposit, but if you're only working part-time and you're not earning a heap per hour (as i'm presuming you don't as you cannot afford rent payments) it is unlikely that you will receive a loan for $700k or a loan at all.
I agree that mortgagee auctions wouldn't be any cheaper than a standard sale. If anything, they could go for a higher price if the previous owner still had a massive loan on the place.
As for the difference between rent and mortgage around there, the difference is massive. Not so much with townhouses/villas but with houses. an example is a 2 bed semi DH and I nearly purchased in Maroubra late last year. We had an offer accepted of 781K and that property has just been listed for rent for about $570 per week. Terrible rental yield. We pulled out as we had no exit strategy if we needed to move out and rent it for some reason. In comparison, our unit in maroubra is worth approx 650K and we are getting $680 per week rent. So if you are prepared to rent a house, you will be able to afford renting so much more than purchasing.
If you do want to buy, you can still find houses in Mascot in the 600s. They don't come up very often. St Peters is reasonably priced too and isn't too far away from Mascot/Matraville.
As for the difference between rent and mortgage around there, the difference is massive. Not so much with townhouses/villas but with houses. an example is a 2 bed semi DH and I nearly purchased in Maroubra late last year. We had an offer accepted of 781K and that property has just been listed for rent for about $570 per week. Terrible rental yield. We pulled out as we had no exit strategy if we needed to move out and rent it for some reason. In comparison, our unit in maroubra is worth approx 650K and we are getting $680 per week rent. So if you are prepared to rent a house, you will be able to afford renting so much more than purchasing.
If you do want to buy, you can still find houses in Mascot in the 600s. They don't come up very often. St Peters is reasonably priced too and isn't too far away from Mascot/Matraville.
You might want to have a look at the Public Trustee of NSW site. They sell deceased estate.
http://www.tag.nsw.gov.au/Properties+For+Sale/Default.aspx
As raised with the mortgagee auctions, the auctions by Public Trustees may not result in a cheaper price ... .
http://www.tag.nsw.gov.au/Properties+For+Sale/Default.aspx
As raised with the mortgagee auctions, the auctions by Public Trustees may not result in a cheaper price ... .
Hi, let's look at the numbers.
@ $500000, you're on 80% LVR, $400000 loan. Your interest repayment will be$2333 per month, approx $585 per week.
@ $600000, $500000 loan, interest repayment = $673 per week
That doesn't include rates, water, etc etc
A lot of us would like to know what kind of part time job allows you work those numbers.
KY
@ $500000, you're on 80% LVR, $400000 loan. Your interest repayment will be$2333 per month, approx $585 per week.
@ $600000, $500000 loan, interest repayment = $673 per week
That doesn't include rates, water, etc etc
A lot of us would like to know what kind of part time job allows you work those numbers.
KY
I think there is some info missing here Sumasuma. To have a home selling for 800-900K and only pulling out 200K of equity indicates a large loan which also indicates that your spouse had a large income to service that loan.
Now that there is a divorce with children involved, you as the part time working spouse are not flung off into the wilderness to raise children financially alone. Is there some kind of financial arrangement which supports your view that you can immediately get back into the market and buy a townhouse?
You need to get clever, objective, pay-by-the-hour, financial advice as soon as possible.
Now that there is a divorce with children involved, you as the part time working spouse are not flung off into the wilderness to raise children financially alone. Is there some kind of financial arrangement which supports your view that you can immediately get back into the market and buy a townhouse?
You need to get clever, objective, pay-by-the-hour, financial advice as soon as possible.
Even if you did have serviceability, I would rent for a while, til things are more settled. Its hard when you have so many life changes happening all at once, and you're likely to make poorer decisions than you might do when life is calmer and on a more even keel.
But from what you've said, it doesn't sound like you could manage such a big loan, and having financial stress is really tough when you have already had the stresses of divorce, moving etc.
Take some time and take an easier road for a little while,
Pen
But from what you've said, it doesn't sound like you could manage such a big loan, and having financial stress is really tough when you have already had the stresses of divorce, moving etc.
Take some time and take an easier road for a little while,
Pen
