Wessmuts Posted January 3, 2018 Report Share Posted January 3, 2018 Hi, I have been looking at properties in the town we are moving to (Rockhampton) and it seems there are a number of options that could work for us. The job comes with free housing for 3 months while we get settled. I'd prefer to buy then and not rent. How long on average does it take to build up a good enough credit record to finance a house purchase? I do understand the cash deposit requirements. The post also has salary packing so the bond repayments are actually paid by the employer, pre tax from the package. Quote Link to comment Share on other sites More sharing options...
ChrisH Posted January 3, 2018 Report Share Posted January 3, 2018 The minimum time is however long your probation period is in the employment contract, no credit provider will even look at the bond application with you on probation. Something else to be aware of, every time you apply for anything that is on a contract basis they will likely do a credit check. Things like cell phone contracts for instance. Hits on your credit profile actually lower your score. This puts most emigrants in an interesting position because you need to fit years worth of admin into a couple of weeks so your profile will have a high concentration of hits. You'll have to try and minimise the hits to your profile as much as possible. Quote Link to comment Share on other sites More sharing options...
Wessmuts Posted January 4, 2018 Author Report Share Posted January 4, 2018 8 hours ago, ChrisH said: Something else to be aware of, every time you apply for anything that is on a contract basis they will likely do a credit check. Things like cell phone contracts for instance. Like a double edged sword. Thanks for these points👍🏻 Forgot about the credit hits and that pesky 3 month probation. Quote Link to comment Share on other sites More sharing options...
Fidjet Posted January 4, 2018 Report Share Posted January 4, 2018 On a simmelar line, do people thinknit better to rent dirst for a bit (paying someone elses bond) or buy and then be "stuck" in the neighbourhood for a while even if its not ideal Quote Link to comment Share on other sites More sharing options...
Nev Posted January 4, 2018 Report Share Posted January 4, 2018 Just a side: Renting is not paying someone else bond, Unless you plan to put down a 60% deposit buying a house, it is at best a gamble that house prices will grow hugely (Something that is looking less and less lightly) or a terrible investment, some people want to own there own home at any costs and that works for them, but it being a good investment should not be one of the justifications A 650k house with a 10% deposit will cost you 1.8 Million over 20 years if you include insurance, rates & basic maintenance, not even including upgrades, If you expect to make a profit you are expecting a really big value increase in the next 20 years, the housing boom is also over, in the last quarter the prices in Sydney fell by 1.4%, If they will plummet because it is a bubble or not, is a controversial question, but there is agreement now that there are no more big gains to be had You can rent a 650k house for about $1600 a month, bond repayments would be $6,261 including expenses personally i dont see any good reasons to by at the moment even if you have the cash 2 1 Quote Link to comment Share on other sites More sharing options...
Wessmuts Posted January 4, 2018 Author Report Share Posted January 4, 2018 12 minutes ago, Nev said: Renting is not paying someone else bond, Unless you plan to put down a 60% deposit buying a house, it is at best a gamble that house prices will grow hugely (Something that is looking less and less lightly) or a terrible investment, some people want to own there own home at any costs and that works for them, but it being a good investment should not be one of the justifications Agree with this philosophy 100%. In fact if you have the cash there is no reason to buy. Invest and rent with the interest. The difference for me is that we are moving to a much smaller town and prices are not crazy. 2 Bedroom river side apartment is 350K and we will live in for 2 years and thereafter keep. If we want to be very frugal there are houses for 200k that don't look awful. It is not a great deal of money on a monthly basis and the long term view is not as dire in smaller centres. As part of a bigger picture with other investments and savings, property can be stable, but to think of it as the cash cow it once was is naive. If i am going to spend 1500 per month on rental or purchase I'd rather just pay the thing off. Here in SA i have been renting for 4 years in the same apartment and I would never have been able to live there for the bond repayment price. All very interesting food for thought indeed 1 1 Quote Link to comment Share on other sites More sharing options...
SandraDee Posted January 4, 2018 Report Share Posted January 4, 2018 Hi we had been here 1 year before we bought and it was not easy to get finance - they wanted to see 2 years history at job/ or business and we had to put a 30% deposit down. We also only got a rate of 3.75 when you can get rates as low as 2.25 out there. We are on PR 1 Quote Link to comment Share on other sites More sharing options...
Wessmuts Posted January 4, 2018 Author Report Share Posted January 4, 2018 @SandraDee - who do you bank with if I may ask? This is another choice to make, I have been corresponding with all the Banks that have recommended to me. Two of them said we could start getting credit rated from here and pre approve home loans/car loans, but this sounds too good to be true. Quote Link to comment Share on other sites More sharing options...
Brad76 Posted January 4, 2018 Report Share Posted January 4, 2018 I might be mistaken but two years AFS/ITRs are requested when you're self-employed - generally the qualification period for someone that's employed is less. Doesn't make sense though - if you run a business you'll need a minimum of two years (using a broker you can possibly wangle a lessor period), yet someone you employ would have a much lower hurdle - so the bank has faith in you and your business when your employee applies for finance but not when you/the 'employer' does!?!? Quote Link to comment Share on other sites More sharing options...
Wessmuts Posted January 4, 2018 Author Report Share Posted January 4, 2018 Just now, Brad76 said: I might be mistaken but two years AFS/ITRs are requested when you're self-employed - generally the qualification period for someone that's employed is less. Doesn't make sense though - if you run a business you'll need a minimum of two years (using a broker you can possibly wangle a lessor period), yet someone you employ would have a much lower hurdle - so the bank has faith in you and your business when your employee applies for finance but not when you/the 'employer' does!?!? That is always the irony. Here in SA i had staff and i give them a payslip which suffices, but when I wanted to apply for anything they want company financials, 6 months bank statements etc.. So i just started listing myself as employed (which technically I was, as it was a pty) and it made things so much easier. Same with Visas to europe. Self employed gets governments and banks panicked. 1 Quote Link to comment Share on other sites More sharing options...
Brad76 Posted January 4, 2018 Report Share Posted January 4, 2018 1 hour ago, Nev said: Renting is not paying someone else bond It's either that or it's just cash for them! The one thing about renting is that once paid the money is gone and there is nothing to show for it! Smart buying will mean there's not too much of a difference between renting and owning - sure you'll have a few additional costs ie rates/repairs etc but if history has taught us anything it's that property is seldom a bad investment - unless of course you're Jewish and stubbornly held onto property in Hillbrow back in the day! 1 Quote Link to comment Share on other sites More sharing options...
Brad76 Posted January 4, 2018 Report Share Posted January 4, 2018 5 minutes ago, Wessmuts said: Self employed gets governments and banks panicked. Yet they're all so pro small business when they advertise!!!! 1 Quote Link to comment Share on other sites More sharing options...
Fidjet Posted January 5, 2018 Report Share Posted January 5, 2018 Thanks. The pan is to rent for a year or 2 and find a place we really like, then we want to buy, the freedom of owning is worth it for us, if we want to paint we can, knock down a wall sure(just get builder help ect) but we can modify and make it ours. We owned for 5 years in sa, and managed to sell for a decent price, made a profit on what we both her for but if you add rates ext we made a los. Still glad we owned, if we rented we wouldn't have gotten anything back now. Quote Link to comment Share on other sites More sharing options...
RedPanda Posted January 5, 2018 Report Share Posted January 5, 2018 I think the major difference with Australia is that property has two values: the value to own the thing(like stocks), and the value derived from the use. And right now those two values are way out of line. The rental price, which reflects the real demand for housing is still kind of in line with salaries, and it doesn't vary that much by suburb. It does vary, but not that much. The purchase price, reflecting the perceived investment potential, is sky high and varies a lot by location. This means that if you don't have a really large deposit/bond then your sums add up differently. That is why it is actually sometimes better to rent and invest in Australia, than to buy. This gets complicated by the fact that the ratios are different for different suburbs, so you can't just take "general advice", you literally need to get the information for your suburb and do the calculations and see what the result is for your case. Unless you do that, debate: Buy or Rent, is totally pointless. Quote Link to comment Share on other sites More sharing options...
Wessmuts Posted January 12, 2018 Author Report Share Posted January 12, 2018 The bank will give us a loan for 90% and we don't need any credit record, just the first payslip from Queensland health. (the 457 visa is the issue otherwise they would have done 100% with no lenders mortgage insurance). BOQ specialises in Medical Doctors and the banking package they offer is pretty good and so far the service has been very efficient. We can pre apply for Car, home loan and credit card that they then give final approval for about 10 days after your first payslip, which is every fortnight (still weird to get used to that idea). Thanks to @AFreshStart for pointing me in their direction. This forum has been really helpful. Quote Link to comment Share on other sites More sharing options...
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