Do I need a perm job to get a home loan?

First time poster here and hope to learn a lot from these forums. My question is do I need a permanent job to get a home loan? Both my partner and I are teachers in NSW and have been working for two years. We have saved 30k and have both secured work for the full 2017 school year. So there's security there for next year but not beyond that (although I'm pretty confident we will get work beyond that as we are willing to travel most places in the state).

I understand this is a question I should ask the banks, which I will in due course. Just wanted the opinions of those more experienced than me.

Thanks.

 

Sounds to me your job is as permanent as most/all others. In this modern world, no job is guaranteed.

I successfully applied for two loans early this year and I am retired. That is, no job.

The main thing is to have income and put together a good business case. I had three banks fighting for my business. If I went to more, I would have had more but I felt three was enough.

 

Welcome. You don't need a perm role to get a loan. Each lender has different policies, many would lend without discriminating to someone in your position.

It's a shame the way Australian teachers are treated! In Scandinavia they are treated and paid much better.

 

Okay well it sounds a bit more promising than I initially thought. I'm 29 at the moment and really want to start a family and buy a house in the next couple of years. I suppose it helps that a. I have a partner and b. We are willing to go where the jobs are.

Should I take a risk and buy soonish or wait for a permanent job to hopefully come around soon? We got work an hour away from Muswellbrook in NSW for 2017 so I'm loosely thinking about purchasing there and travelling to work. My reasoning behind this is that I'd rather my money go to a mortgage than someone's IP. My other two options are just save for another year and fork out for rent or perhaps buy in a location I'm happy to live in in the future (probably the outskirts of Newcastle) and rent that out whilst also forking out for rent myself where I'd live.

Any tips would be appreciated. I've done a lot of research in the last month or so but besides that am completely new to buying property. Glad to have come across this forum.

 

Welcome too the site,better to ask the questions within this site before you both walk in the bank lenders door.."Preparation is the key to Success".

 

If I was in in your situation, I would explore this option first as the tenant and the ATO are helping you with your IP (some people use the term rentvestor).

Each to their own but I wouldn't be rushing to buy a property in Musellbrook. I am very conservative and wouldn't even consider Newcastle. I would only ever buy in Sydney, Melbourne and Brisbane.

Please don't take any of this as advice; at best, it is my opinion. You need to develop your own knowledge (joining PC is a good start), do your own due diligence, develop your own Financial Independence Plan and then execute it.

 

I have naturally curly/wavey hair and have found it to be of no assistance in getting a home loan.

 

Yeh all good. I hate city life to be honest and don't wanna spend heaps on a house. Newcastle, Central Coast or Wollongong are generally the areas I'm looking in (or want to get to and settle down in) Quieter than the city, still have the sports and beaches I love yet still providing good retail therapy for my partner. I guess I'm looking at my purchases from a lifestyle perspective and just want to know what strategy will get me to my end goal of living in those areas (keeping in mind I may jump around the state for a couple more years as a teacher until I get a perm job in Newcastle/CC/Wollongong). As much as I'd love to live in my own house now I'm thinking the least risky way to go is buy in Newcastle or CC and rent it out until myself or partner land a job in the area and then move in ourselves.

Nonetheless, your advice is much appreciated, as well as everyone elses

 

Buy where you and your partner want to settle down as soon as you can afford to. Rent it out while working around the state.

Or wait a few years until prices have increased 20%, you need a bigger deposit and interest rates are up...

 

Should be fine given the profession and previous history.

Cheers

Jamie

 

Buy while you are still on 2 incomes if you're looking at starting a family.

 

It sounds like you guys are pretty sensible, but still it goes without saying to buy less house than you can afford.

I'd be doing the numbers all on one wage (pretending mum is already at home looking after Baby) and also at 7 percent interest.

If you give yourself a green light after that then go for it. This will have the double bonus of not only keeping you financially afloat but also your relationship too!

Also, seeing as travel is going to be an option, buy your first place with a view to making it an Investment later. So buy in a "rentable" spot and structure your loan correctly.
There are lots of threads on here about loan structure, also all of the brokers on here will be able to help you.

Good luck!

 

Can they provide housing if moving for work? I'm not sure education land works.
Team up and sell yourselves as 2 teachers willing to move to a school and see if anywhere provides housing

 

There is the Teacher Housing Authority who provides rental properties for teachers moving from location to location. For the past two years I have had my rent subsidised by 50% through them as we were living in Moree - pretty isolated and the schools up here are tough. Renting a 2 bedroom townhouse at $85 a week was pretty sweet I must say. In 2017 we won't get the subsidy as we have moved closer to Sydney so rent will be more around $200 a week I'd say. Obviously that's quite a significant more we are wasting which has driven me to look into property a bit earlier than I expected. With a 30k deposit I'm pretty sure I can get next to nothing (that we would be happy with anyway) so I'd probably have to save for another year anyway. But thanks for the tips. Dads always said to buy a property first and rent it out; he has his own portfolio so I guess he was onto something. I'll definitely look at the information recommended by all of you soon. Thanks.