Hello all.
My wife & I:
* Live in NSW
* Have zero debt
* Have no credit cards
* Have $170,000 in savings
* Qualify for the FHOG and no stamp duty
* Have three children (6 months, 8 & 12 yrs)
* I receive a Disability Support Pension and my wife a Carer Pension.
Here's the list of payments I receive each fortnight:
Disability Support Pension $453.30
Pension Basic Supplement (for GST) $16.20
Pharmaceutical Allowance $3.00
Utility Allowance $9.62
Telephone Allowance $1.69
And here's a list my wife's fortnightly payments:
Family Tax A $454.02
Family Tax B $71.26
Large Family Supplement $10.36
Carer Allowance $100.60
Carer (Basic) Payment $453.30
Pension Basic Supplement (for GST) $16.20
Pharmaceutical Allowance $3.00
Utilities Allowance $9.62
Telephone Allowance $1.69
Family Tax Benefit Part A Supplement $26.39
Family Tax Benefit Part B Supplement $12.92
Carer Allowance Recipients $38.46
Carer Allowance Recipients $23.08
Education Tax Refund $28.85
Ironing clothes $40.00
Mr subtotal: $483.81
Mrs subtotal: $1289.74
F/Nightly Total: $1773.55
BUT... I think lenders only count the payments in bold above. If so, then:
Mr subtotal: $472.50
Mrs subtotal: $1108.74
F/Nightly Total: $1581.24
I have entered the two totals above into online "how much can I borrow" calculators. But I know some lenders will not even lend to Centrelink recipients (or if they do, the amount is so low, you may as well not bother
). I also know the amount they will loan falls dramatically once lenders learn Centrelink is the income source. (It shouldn't, because a Disability Pension is secure, and therefore shouldn't be judged like other Centrelink payments such as unemployment benefit.)
We have detailed records of every dollar in and out of our household since Dec 2006 (and bank records since 2002). They clearly show our savings ability (and therefore the amount we can service a loan with) is way above what lenders assume Centrelink recipients can repay. (For proof they need look no further than our deposit we saved from basically $0. Apart from about $65,000 received recently from an inheritance, we saved the other $110,000 ourselves over the last 5 years.)
We can prove through documentation we can effortlessly stick to a strict, long-term budget. We typically have about $1050 of spare cash per fortnight to service a loan. (That amount does not include bank interest, because I realise any interest earned will cease once we use our savings to purchase a property.) Also, if we buy a PPoR rather than an IP, we would no longer need to pay $145/week in rent.
That effectively means most fortnights we would have $1050 + $290 = $1340 to service a loan.
While there are some properties in our area (Newcastle, NSW) about $240,000 - anything decent typically begins about $280,000. So we would need a loan of between $56,000 to $96,000. The repayments on $96,000 (over 25 years) are about $143/week. This is the same as our current rent. So it's obvious we could not only manage, but pay a $96,000 loan off in record time. (I estimate about 3.5 years.)
What I would like to know is...
1. Based on our income, are there lenders that will lend these amounts to us, being Centrelink/Pension recipients?
2. In order to find such a lender, will we find ourselves having to accept:
a. Higher interest rates?
b. No offset account, or LOC available to us?
c. Early loan payout penalty fees?
3. We have always swung between buying in Newcastle, or, buying a rural property (ideally 100 acres or so with no current dwelling). Are there lenders that will lend to us for rural property as our first purchase? (Assuming similar loan amounts.)
4. Assuming we bought a PPoR, paid out our first loan in 3.5 years, then rented it out - it now being valued at $300,000 and earning $300 per week rent... What kind of loan amount could we expect to then borrow, to buy Rural acreage? (Using our PPoR as security if necessary - and no change to our income source.)
(Ideally I'd like to have IPs as our income source, rather than Centrelink pensions. But we'd like our kids to grow up in a rural area - and I'm mindfull that our oldest doesn't have many years now for us to do that.)
Thanks for reading this far!
My wife & I:
* Live in NSW
* Have zero debt
* Have no credit cards
* Have $170,000 in savings
* Qualify for the FHOG and no stamp duty
* Have three children (6 months, 8 & 12 yrs)
* I receive a Disability Support Pension and my wife a Carer Pension.
Here's the list of payments I receive each fortnight:
Disability Support Pension $453.30
Pension Basic Supplement (for GST) $16.20
Pharmaceutical Allowance $3.00
Utility Allowance $9.62
Telephone Allowance $1.69
And here's a list my wife's fortnightly payments:
Family Tax A $454.02
Family Tax B $71.26
Large Family Supplement $10.36
Carer Allowance $100.60
Carer (Basic) Payment $453.30
Pension Basic Supplement (for GST) $16.20
Pharmaceutical Allowance $3.00
Utilities Allowance $9.62
Telephone Allowance $1.69
Family Tax Benefit Part A Supplement $26.39
Family Tax Benefit Part B Supplement $12.92
Carer Allowance Recipients $38.46
Carer Allowance Recipients $23.08
Education Tax Refund $28.85
Ironing clothes $40.00
Mr subtotal: $483.81
Mrs subtotal: $1289.74
F/Nightly Total: $1773.55
BUT... I think lenders only count the payments in bold above. If so, then:
Mr subtotal: $472.50
Mrs subtotal: $1108.74
F/Nightly Total: $1581.24
I have entered the two totals above into online "how much can I borrow" calculators. But I know some lenders will not even lend to Centrelink recipients (or if they do, the amount is so low, you may as well not bother
). I also know the amount they will loan falls dramatically once lenders learn Centrelink is the income source. (It shouldn't, because a Disability Pension is secure, and therefore shouldn't be judged like other Centrelink payments such as unemployment benefit.)We have detailed records of every dollar in and out of our household since Dec 2006 (and bank records since 2002). They clearly show our savings ability (and therefore the amount we can service a loan with) is way above what lenders assume Centrelink recipients can repay. (For proof they need look no further than our deposit we saved from basically $0. Apart from about $65,000 received recently from an inheritance, we saved the other $110,000 ourselves over the last 5 years.)
We can prove through documentation we can effortlessly stick to a strict, long-term budget. We typically have about $1050 of spare cash per fortnight to service a loan. (That amount does not include bank interest, because I realise any interest earned will cease once we use our savings to purchase a property.) Also, if we buy a PPoR rather than an IP, we would no longer need to pay $145/week in rent.
That effectively means most fortnights we would have $1050 + $290 = $1340 to service a loan.
While there are some properties in our area (Newcastle, NSW) about $240,000 - anything decent typically begins about $280,000. So we would need a loan of between $56,000 to $96,000. The repayments on $96,000 (over 25 years) are about $143/week. This is the same as our current rent. So it's obvious we could not only manage, but pay a $96,000 loan off in record time. (I estimate about 3.5 years.)
What I would like to know is...
1. Based on our income, are there lenders that will lend these amounts to us, being Centrelink/Pension recipients?
2. In order to find such a lender, will we find ourselves having to accept:
a. Higher interest rates?
b. No offset account, or LOC available to us?
c. Early loan payout penalty fees?
3. We have always swung between buying in Newcastle, or, buying a rural property (ideally 100 acres or so with no current dwelling). Are there lenders that will lend to us for rural property as our first purchase? (Assuming similar loan amounts.)
4. Assuming we bought a PPoR, paid out our first loan in 3.5 years, then rented it out - it now being valued at $300,000 and earning $300 per week rent... What kind of loan amount could we expect to then borrow, to buy Rural acreage? (Using our PPoR as security if necessary - and no change to our income source.)
(Ideally I'd like to have IPs as our income source, rather than Centrelink pensions. But we'd like our kids to grow up in a rural area - and I'm mindfull that our oldest doesn't have many years now for us to do that.)
Thanks for reading this far!
