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Home loans 'n stuff

Discussion in 'The Pub' at netrider.net.au started by hornet, May 18, 2009.

  1. Through force of circumstance and (a lifelong lack of money), the Hornets have been professional tenants for the last 36 years.

    However, as we creep towards retirement, we find ourselves with fewer outgoings than ever before, and a reasonably steady income.

    So buying a small house, just for the two of us, seems an appealing option.


    A few years ago I did some investigating and found an unpleasant fact about buying a house. You see, there are First Home Buyer's grants, and New Home Buyer's grants, and New FIRST Home Buyer's grants, and as well, for an ex-serviceman, there's a Veteran's Affairs grant.

    BUT.. you can't have both.

    That's right. Although I am entitled to the former, and EARNED the latter, I was told that I can't have both.

    I don't know if this is still the case, but as you can imagine, my investigations stopped dead at that point; and if it IS still the case, then the Hornets might well be renting up to the grave :LOL:.
  2. Yeah, quite unfair in your case. I received my grant as a single guy a few years back. Sold my place and made good money on it and then found my partner and we went house hunting. Because we were both in it together, my partner didn't qualify for it. 'Shrug'.

    Just do your homework and see which way you can get the most money. The way I see it is it's not often you get given money so if in your circumstance it works out to buy, then go for it.

    I'd say we're not far off prices bottoming out so buy cheap and have the option to sell later at a better price. Since we always experience downturns every so often, make the most of it if you can.

    PS....I'm no expert, just that owning has really worked for me.
  3. Ah come on mate! Pick yourself up a tidy bargain!

    Rent money is dead money! A cosy place that the bank owns doesn't sound half bad does it? Even if you can't get all the free money that you should be getting :wink:.
  4. That's a bit rough, but I hear the first home buyer grant may soon be off the market (or at least reduced). Does that help? :grin:
  5. IIRC, they'll be halving the first home owners grant on 1st Oct to 10.4k.
    Mind you the price of homes will still be dropping next year.
  6. Maybe you can claim the vets benefit, and the significant other can claim the first home buyers grant? Because only one of you can claim the first home buyers grant anyway while the other forgoes it. Unless you do some trickery with the deed and only have one person sign it and then do up a solicitors note stating that the property belongs to both of you.

    Anyway, mortgages are cheaper than rent these days when buying a smallish house/unit - so it's not like you're wasting money.
  7. Owning your own home might not be the sure fire way to make a million, but something all the naysayers and doom mongers forget to mention is about how nice it is to live in a home, and not someone elses house.

    I say, if you can afford it and it isn't going to degrade your standard of living, buy something. But buy a home and not a house.
  8. Maybe you can claim the vets benefit, and the significant other can claim the first home buyers grant

    interesting lateral thinking :shock:

    Toecutter, where are you??
  9. If you have to choose one: take the bigger one.
  10. FWIW - My boss (who's good with money, and on the stock market) said not to buy, wait for a few years for the market to crash and things to be at their cheapest, unless its a lifestyle choice (ie babies, stability, etc).
  11. Can you claim the first home buyers grant and then re-finance with the veterans package?
  12. I'm with booga. The grants etc. are promptly placed on top of your purchase price, nullifying the saving/gift from the government.
    I will buy, I just refuse to give in to the "You have to do it now!" crowd.
    ...that and the few hundred acres, with two houses, on the beautiful south coast that my significant other has :grin:
  13. Dave, if you're buying an investment, that might be wise advice. But every person should base their decision on their needs (which I believe you did say)

    The other thing that your friend might not mention is that you absolutely HAVE to do something useful with the difference between the rent/mortgage money. No point pissing it all away and then missing the signs for the rise of the market, then getting stuck in the renting market, not out of choice but financial necessity.

    And there is nothing like making a home, especially with someone you love. A place where you can make changes, add your personal touch (ok, Pia can add her personal touch!).

    Good luck with whatever you chose.
  14. Take the biggest one and buy a place. If nothing else, you'll be paying the same and you'll be leaving something for your kids, instead of paying someone else's mortgage for them!
  15. +1
  16. I would say if you find a place you are happy with and are able to service a loan at 3% higher than the current interest rate, go for it. and pay that much off... That way you shorten your loan length and buffer for harsher times ahead... ie when interest rates start climbing back up in about 2-3 years.

    It is true imo that house prices haven't bottomed out.. Probably won't for another year or so but if you find the right place, for the right price, buy it.

    As for the grants, just pick the one that is higher. You can't both claim one with your partner you have to just pick 1. Although if your buying a place and not buying a place depends on your getting a govt grant perhaps you're not in the best position to service a loan.

    In my view as long as you're happy with the house, the price and can service the loan it's the way to go.
  17. Hornet, do you also qualify for a defence force loan? My sister's ex-RAN and despite not having been in the Navy since the late 80s she can still get an ADF loan, which I understand are quite cheap.

    Perhaps, as others have suggested, get the subsidy that offers the most and apply for an ADF loan.

    And yeah, rent money is dead money. Imagine how many mortgages that you've paid for over the years. And there is something about being in YOUR home, not someone else's house, dreading the bi-annual inspections where the feminazi property managers rock up to deal with the low life tenants. Or the landlord decides to sell up and you're scrambling to find another place in less than a month. Or you have to beg and plead to get a hot water service fixed. Or you panic when one of the kids puts his foot through a wall.

    Well, you get the picture.

    [I speak from experience, having rented when we were building and more recently when said built house was sold and we were looking for somewhere suitable to live and having to deal with aforesaid feminazi bitches who earned a third of what I did and with an educational level to match].
  18. Hornet, do you also qualify for a defence force loan? My sister's ex-RAN and despite not having been in the Navy since the late 80s she can still get an ADF loan, which I understand are quite cheap.

    Yeah, I do, I did seven and a half years in the Australian Army between 1972 and 1979. And as such I DO qualify for the loan. But the bind is, they won't give it to me unless that's the only one I take. Since I've never bought a house, I should be able to get what I've EARNED, and also the stuff the Government wants to give away to encourage people like me to stimulate the economy by entering into debt for the rest of my life on a new house :LOL:.
  19. OK, here's the answer:

    Buy a place, taking full advantage of the first home buyer's grant. Then resell that place and buy a house using the other benefits you're entitled to. Of course, you'll have to wait 6 months, but you can then roll the equity in against the new purchase.

  20. same. my hard earned deposit i have saved will wait out this force of fake benifit..