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| Heard on the weekend that the Minister for Housing is considering extending the Grant Boost beyond the 30th June however after reading the West the other day, some of the experts had some valid comments about the Grant creating an artifical recovery in the real estate market. It makes sense the longer this goes on, the bigger drop off we have when the Boost Grant stops. Your thoughts???......... |
Valerie
26/03/2009 3:19:00 PM
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| Scary figures and definitely food for thought, looks like the kids wont be moving out of home anytime soon and will be eyeing off their parent's retirement fund as a deposit. Thanks Brook. Valeriex |
Valerie
12/03/2009 11:14:00 AM
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John,
Just crunching some quick numbers for you and based on the following assumptions:
Joint Income of $140k pa equates to $70k pa ea which is $4496.00npm ea.
Married with no kids.
1x credit card with $10k limit and no other debts.
Max b/cap $1,103,846 (this would put them on the bare bones of their butt). Monthly repayments are $6086.16 on this level of debt.
Deposit on a purchase price of $600k would be $120k (assuming we are not paying mortgage insurance). End loan amount would be $480k (assuming they had sufficient to cover stamping and settlement costs). Repayments on this $480k would be $2638.70 per month.
So based on the above they could afford it. Now this is right now at this very moment in time...not in 2 years once they have a child with another on the way etc etc. Responsible lending would dictate that some forward planning with your clients is looked at to ensure that whilst they can afford their lovely home now that they can afford to keep it when things get a little financially tighter.
Hope this helps.
Brook |
Brook Durling
6/03/2009 4:40:00 PM
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| Great questions John, hopefully one of our banker or broker contacts will be able to answer, I'll email a couple and ask them to respond |
Valerie
6/03/2009 4:17:00 PM
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Please help me with some practical advice based on real world situations. I'm finding it difficult to imagine how anyone could buy a home worth $750,000 as a first home buyer.
- How do first home buyers afford a house of, say, $600,000?
- What's the maximum they could borrow, assuming they earn jointly $140,000 pa?
- How much of a deposit would they typically bring to a purchase of this amount?
- How much would they typically be borrowing from their parents? |
John Townsend
6/03/2009 3:22:00 PM
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