Advise for first home buyers

Discussion in 'What to buy' started by Bbutlerau, 24th Feb, 2020.

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  1. Bbutlerau

    Bbutlerau Member

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    22nd Feb, 2020
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    Location:
    Footscray
    Hi all. My partner and I are wanting to stop renting as we both have got good job promotions etc over the last couple of years and are now in a place to start seriously looking.
    We are looking at the Footscray area of Melbourne as we currently rent there and love the area. I also think the prices are really reasonable for only being 4km from the CBD and is undergoing big gentrification over the last few years.
    Our budget is around 500k and don't want a small mass produced apartment as I don't see much grown in value for those. There are so many popping up in the area.
    Is it worth forgoing the 10k fhog and getting a reasonable established house rather than all the OTP stuff flying around. Any advice is appreciated as we are very new to this.
    I have sat down with my bank and gave them our basic details (income current car loan, deposit etc) and they are happy with up to 750k as a first estimate although we don't want near that as don't want to stretch ourselves too thin.
     
  2. thatbum

    thatbum Well-Known Member

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    Perth, WA
    100% yes.
     
  3. Trainee

    Trainee Well-Known Member

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    How much deposit to you have?
     
  4. Bbutlerau

    Bbutlerau Member

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    22nd Feb, 2020
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    Location:
    Footscray
    Around the 7% mark
     
  5. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    If you're Australia citizens you'd be eligible for the FHLDS - you don't have to pay LMI and you'd get a competitive loan with only a little more than a 5% deposit.

    If you're permanent residents, 7% will be a little short. I'd suggest to keep saving a little longer until you've got about 12%-13% of the purchase price.
     
  6. Bbutlerau

    Bbutlerau Member

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    22nd Feb, 2020
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    Location:
    Footscray
    Thanks. Both citizens. Would be applying for it but only limit spots. If not parents may be able to go guarantor.
     
    Peter_Tersteeg likes this.
  7. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    Keep in mind the CBA & NAB are running out of places very quickly, but there are places available with the second tier lenders.