Keen As Mustard To Sell

[Beer Baron]

So the bank provided a loan with just a 10% deposit of the house? (assuming $400k~) I thought banks would need some security other than the deposit because once thats spent on the purchase what can the bank take if the person loses their job etc?

Genuine question because I am in the same boat and I have a feeling I will need to use parents' house as security to get a loan approved.. Interested to hear.

the house you are buying is the security.... the bank has a mortgage on the house. yes the deposit is spent on the purchase of that house, so if you lose your job and default on the mortgage they foreclose on the house you bought with them and sell it. since you paid for 10% of it they can sell it for a quick sale at 90% of what it was purchased for and get all their money back. and if you've made any principal payments then that figure is even lower.

10% deposit is sufficient to get a mortgage for the remaining 90%. in fact there are lenders out there who will cook something up for you with even less than that. personally I'd suggest 20% deposit is a good place to start not least because it negates the need for mortgage insurance which will save you a few grand. but if all you have is 10% and you think you can make at the very least the interest payments then by all means mortgage away.

[PM-R33]

Yep if you have around 10-15% saved up over 6-12 months it's usually all that banks require. Been looking into houses aswell as hoping to purchase one this time next year if proposed job goes well next year.

[g35me]

Im 50 and my 21 year old daughter has just bought a 2nd investment property for $420,000, despite being only a 4th year apprentice.

With no help from Dad other than going guarantor on her loan and living at home board free.

Simple.

start paid work at 14 9 months whilst at school and spend as little as possible.

rise to the top of each position and buy your 1st investment @ 18 by putting down a $20k deposit on $140k appartment.

The rent and full time job pay off unit at 21.

By 21 despite being only a 4th year apprentice, earn $1100 per week after tax (as a chef), plus $200 week from Rental of 1st property.

Mortgage 1st property (now paid off and worth $200k) and receive $100k deposit to buy 4 bed, 2 bath ,double garage home in Glenmore park leased for $520 per week.

But the secret is spend little on a car (7 year old Clio sport), spend little on going out (only goes out once a week) no drugs, no gambling, little drinking, no big holidays but she is going on her 1st holiday next month to Canada.

The facts speak for themselves above, however the situation is different. Here you have a young lady that lives at home with no expenses and leverages a deposit to buy a house. The bank has a secured loan over a house.

The original post stated that if you left school at 16 and worked until 24 in an unskilled field given no formal education you would not be paid more than average wage and with normal living expenses an R35GTR would be out of reach. I still stand by that fact given these assumptions. With no equity in property, shares no bank will lend a 24yo $170,000+ car as the loan is secured against a depreciating asset.

Even you case study above says that the secret is spending as little on a car which is my case in point. However I can discuss property all day long as it is what I do for a living but the discussion was about affording an R35 GTR.

[Kujotk]

I'd hardly call Real estate a formally skilled profession either.

The scenario works for property, it doesn't work for most cars.

Having said that if your 24 and buying a $200k car by yourself, you wouldn't have a 9-5 office job....and I definately would not be borrowing to buy a car that depreciates as well as pay interest on top.... unless you are terminally ill and have a year to live...

[HIMMY]

yes it is a vast over simplification, but how many 100's of pages would it take to define every type of person and every situation.

I simply believe that any 15 YO kid living in a major city with good english and average common sense can get a job at KFC or maccas etc and earn over $25k over the next 5 years. What a 15-20 YO old does with his money is another thing.

I am 26 and I have 5 properties a degree a sideline import retail and wholesale company and good 9-5 job thats takes me across the world - never played in the ASX just did what Dominic basically said.....yet I drive a 33GTR coz i did the stupidest thing and went and got married LOL

THATS THE SECRET PEOPLE DONT GET MARRIED HAHAHA!!!

But in all seriousness I am looking at a 35 but will wait till next year when the new model comes out and the current ones drops like a mofo to under 100K....let someone else take the hit and we can make the gain later on....either that or just another couple years buy a Murcielago :-) hmmmmm Murcielagoooooo..........

Himmy

[druzilla32]

I am 26 and I have 5 properties a degree a sideline import retail and wholesale company and good 9-5 job thats takes me across the world - never played in the ASX just did what Dominic basically said.....yet I drive a 33GTR coz i did the stupidest thing and went and got married LOL

THATS THE SECRET PEOPLE DONT GET MARRIED HAHAHA!!!

But in all seriousness I am looking at a 35 but will wait till next year when the new model comes out and the current ones drops like a mofo to under 100K....let someone else take the hit and we can make the gain later on....either that or just another couple years buy a Murcielago :-) hmmmmm Murcielagoooooo..........

Himmy

next years model will still drop in value as all cars do, ya doosh

Get the 35 now himmy!

[HIMMY]

Lol I was saying i'll buy the old model coz it will be cheap as f**k LOL

Im indian you fool!!! Never buy brand new are u crazy LOL

[maclarenf1]

Lol I was saying i'll buy the old model coz it will be cheap as f**k LOL

Im indian you fool!!! Never buy brand new are u crazy LOL

Good one

+1 for Never buying Brand new when it comes to Cars

[Day2na]

Yep if you have around 10-15% saved up over 6-12 months it's usually all that banks require. Been looking into houses aswell as hoping to purchase one this time next year if proposed job goes well next year.

Your right