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rent and be 'comfy' or buy and be 'stretched'


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Poll: if you are TTC, preggers or have littlies do you or plan to or have you decided to:

if you are TTC, preggers or have littlies do you or plan to or have you decided to:

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#31 shirl

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Posted 15 May 2006 - 08:41 PM

thanks again lovelies for all your thoughts an opinions, it is really helpful in the debate running in our heads! before long we will make our decision!

..does anyone know how 're-drawing' actually works? that is what we would have to do for a short while when on one income....I figure we can only redraw the principle we have paid in..so best to pay extra for as long as we can on 2 incomes, if we go the mortgage way...when redrawing, do we withdraw, say enough money for 3 months and budget it? (ie. 3 months of the budget deficit at that time)..or can it be accesed as needed?

Does anyone do the re-draw thing...? or if ' TOO tight' on one income, with a mortgage what do you plan to do, dare I ask?

That is the thing with renting, there is no 'redraw' if it gets tough...at least a mortgage is somewhat flexible, even though you pay for the priviledge in the long run...

Thanks again, just my head running a marathon and my ovaries started to scream... blink.gif ph34r.gif

#32 choplogic

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Posted 15 May 2006 - 11:40 PM

I think the redraw thing is that when you put more into your mortgage than your minimum monthly repayments, you can take that back any time.

We have a Westpac mortgage and basically on the internet banking it shows us an amount of "funds available" which is how much we can redraw if needed.

Another option would be to ask for a repayment holiday or reduced monthly payments if you have been paying over and above the minimum monthly repayments.


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#33 Dixie

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Posted 16 May 2006 - 09:06 AM

We do the redraw thing through Bendigo Bank. Basically what we do is pay both our incomes onto our mortgage (its about $1500 more than the repayments required) and we use our credit card to pay for all our expenses. At the end of the month we get our credit card bill which you then have 30 days to pay. So effectively your mortgage is sitting at a lower balance for 60 days therefore decreasing interest payable. Each month we redraw the full balance owing for the month before and pay the credit card off.

This can work really well if you are good at budgeting but it can be horrible if you don't budget properly.

#34 hubby33

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Posted 16 May 2006 - 10:07 AM

The amount and number of redraws may be limited depending on the particular loan you have. Sometimes redraws are free, sometimes there are so many free a month and sometimes all of them have a fee attached.

The 'cheaper' (lower int rate) loans generally have less features so they may require a minimum of $500 redraw, only allow 2 a month (fees after that) etc. You definitely need to look into the loan you are getting/have got to check what features it has. Just ask lots of questions when at the bank/mortgage broker - the worst that can happen is they will tell you the loan they offer is not suitable or they don't think you can afford to make the repayments.

While renting doesn't allow a redraw it is usually cheaper than a mortgage and less stressful - the last thing you want is to find you can't make repayments and the bank kicks you out. Definitely consider income insurance for your hubby if you will not be working - the last thing you want is an injury which means he can't work and then you are really in trouble with the mortgage.

Just ask lots of questions...

#35 Ellie

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Posted 20 May 2006 - 11:32 PM

I have also heard of an option with some home loans to stop or reduce the loan repayments for 12 months if one of the income earners is on maternity or carers leave? Maybe this is another option? Don't know if there are fees, obviously the interest would still be accummulating for those 12 months.. There was an ad for this in our bank (a credit union) newsletter.

#36 shirl

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Posted 21 May 2006 - 08:09 AM

Thanks again everyone, this has been really helpful! No decisions yet, but lots of direction coming into play.... rolleyes.gif

#37 Busterella

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Posted 21 May 2006 - 09:11 AM

we actually pay less for our mortgage then we would on rent here in England. I am not sure if it is the same case in Aust though.
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#38 Anita

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Posted 21 May 2006 - 09:26 AM

We intentionally moved into a much higher rental rate (for 12 months) this time to ensure that we will be able to deal with mortgage payments when we do buy. wink.gif

#39 MrsS

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Posted 22 May 2006 - 01:42 AM

We rent and I doubt that we could find a mortgage equal to our rental rate in our area. Seriously, most rentals in our area are around $300 per week and we pay just over that per fortnight! For that, we get a four bedroom brick house.....and downstairs is rented to my BIL (fully self contained, double garage) for around $150 per fortnight!

Our place has been sold several times but we have amazing rental agents (they're considered to be in the top three in Brisbane....and so hard to get on their books as tenants!) and they love us. Well, we have rung them once in three years because of a burst pipe...we take care of other repairs. As for the garden, between the landscaper and the maintenace guy we have one of the best yards in the street. And when it's Christmas Lights times...laugh.gif
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#40 ***Jo***

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Posted 25 May 2006 - 10:11 AM

Hi there,

This is quite an interesting one and I think it depends on what city you live in as well. We live in Sydney, H2B is from London and I am originally from Perth.

We live in a lovely two bed two bath apartment close to the city and pay $410 per week. I absolutely love it and we manage really well as well as saving a good amount each month. We have no idea where we are going to end up, but we want to start trying for kids after our wedding in January 2007.

I figure we will get it sorted at some point although we are getting older (31 and 34 respectively) but we are saving some good money and will probably start off small and upgrade from there.

Also we have a visa issue to contend with as well, we'd have to pay a 20% deposit for a loan under H2B visa, although I guess I could always buy something under my name. A lot of my friends from Perth get really funny about us not having a mortgage.

I say don't be pressured into what you think you should do by a certain age. Just do what feels right for you guys and if thats kids first and then a mortgage so be it, you'll find a way to get there if you are sensible with your incomes.

Best of luck.
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#41 green

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Posted 25 May 2006 - 10:56 PM

if anything wing it and buy why your family is young because as they grow so does there cost , we bought our first house when i was 19 and had a first baby at 21 very unplanned but hay tomorrow im 25 and loving life

#42 toffee

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Posted 29 May 2006 - 01:51 PM

QUOTE (Busterella @ May 21 2006, 09:11 AM)
we actually pay less for our mortgage then we would on rent here in England. I am not sure if it is the same case in Aust though.

i dont' know about Australia as a whole but i know thats not the case in sydney sad.gif

#43 T'sPrincess

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Posted 06 July 2006 - 06:27 PM

we have just bought a property and will be ttc straight away after we get married. thankfully we have been blessed with jobs that will enable us to pay it off comfortably on his salary alone without being too stretched. couple that with the baby bonus and maternity leave pay. we should be ok.


#44 Leilahbabe

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Posted 06 July 2006 - 10:35 PM

I would always prefer to buy a house rather than pay rent, any day. Sure, in the short term you might be out of pocket. But the thing with real estate, if you want to make money off it, you have to be in it for the long term. We have two investment properties, and don't have to pay the rent in the flat where we live as my husband's employer fully pays it.

You might make more if you saved the difference and invested it in shares or whatever but the reality is, who is really that disciplined? When you have a mortgage you are forced to make the payments, no matter what weekly emergencies come up. Also, better tax breaks with property than if you invested in shares. I would go for buying, any day, but just my opinion. cool.gif

#45 GirlHunt

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Posted 06 July 2006 - 11:00 PM

Well hubby and I have been renting for 3 yrs now and we are finally at stage 1 of building. Mind you if it wasn't for my PIL'S giving us land to build on and my FIL's company building our house we would have to wait another 2-3 yrs for us to build/buy.

Rhys is the only income earner and we get minimal pymts from the governement. But as we are getting help from my IL's we can still have a mortgage and I can still be a stay home mum.

But we also want to have another baby before we take out a mortgage as having one child alone SOMETHING I DIDN'T REALISE TILL RECENTLY.........reduces our borrowing power by $50k ohmy.gif . And I think a second child reduces it by another $25-$50k blink.gif blink.gif

So we are desperately trying to save and build this house asap as we don't want a 4 year gap between Ella and her sibling.
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