rosetta
Ideal_Rock
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Financial/housing advice!
- Thread starter justginger
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rosetta|1354307342|3319498 said:Your finances look good. I think going for the new place will be a-okay if that's what your heart wants.
I agree. I am a big believer that where you live is critical to one's happiness. If this is something you guys really want and you can afford it go for it. You only live once and your home really is your palace. When I come home everyday I love where I am (and ofc who I am with) and it makes a big difference in quality of life.
Good luck Ginger!!
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LaraOnline
Ideal_Rock
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It's late so I haven't got time to read all the responses unfortunately.
I say it's a great time to buy and build. The building companies will be offering incentives, and they are not exactly rushed off their feet, so the scheduling and attention to detail should be better than say five years ago.
I would be careful to plan exactly what you want in the house, though!
Take your time in selecting your house and builder.
Interest rates are low now, and the next year or so, when your home is finished, it would be possible and possibly desirable to lock in a longer term rate. We are currently experiencing a time of instability which is reflected in very low rates, but interest rates could come roaring back. Only hindsight is 20/20 unfortunately. It sounds like you could manage the cost of the land okay right now.
How would you manage with the home of your dreams as well? Have you scoped out building costs? I'd expect a home to take about year to build, from the time you initiate work plans and processes with a builder, and that's if you're pretty quick to make your choices and engage your builder, get your plans off to council etc (which a builder is likely to manage for you). It can be difficult to settle on a builder and plan though. Managing your own build is likely to add in a lot of delays.
Home loans are staggered when building, as percentages of the overall loan go onstream as the build progresses. (Of course you probably know all that). When your house is built, and the full loan amount is payable, you can rent your current house out! Or, if you're feeling nervous at that time you can sell. Although the market may not be fully recovered at that time, depending of course on the desirability of your suburb.
I say it's a great time to buy and build. The building companies will be offering incentives, and they are not exactly rushed off their feet, so the scheduling and attention to detail should be better than say five years ago.
I would be careful to plan exactly what you want in the house, though!
Take your time in selecting your house and builder.
Interest rates are low now, and the next year or so, when your home is finished, it would be possible and possibly desirable to lock in a longer term rate. We are currently experiencing a time of instability which is reflected in very low rates, but interest rates could come roaring back. Only hindsight is 20/20 unfortunately. It sounds like you could manage the cost of the land okay right now.
How would you manage with the home of your dreams as well? Have you scoped out building costs? I'd expect a home to take about year to build, from the time you initiate work plans and processes with a builder, and that's if you're pretty quick to make your choices and engage your builder, get your plans off to council etc (which a builder is likely to manage for you). It can be difficult to settle on a builder and plan though. Managing your own build is likely to add in a lot of delays.
Home loans are staggered when building, as percentages of the overall loan go onstream as the build progresses. (Of course you probably know all that). When your house is built, and the full loan amount is payable, you can rent your current house out! Or, if you're feeling nervous at that time you can sell. Although the market may not be fully recovered at that time, depending of course on the desirability of your suburb.
justginger
Ideal_Rock
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- May 11, 2009
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- 3,712
Update: we did not get the block.
We offered X amount, which was SIGNIFICANTLY lower than their original asking price, and another $30k lower than their advertised "sale" price. They came back with a counteroffer of $4k lower than their sale price. We counteroffered our original offer again. They came back with $15k below their sale price. And that's where they stayed firm. The difference of $15k isn't much when considering the overall price of the block, but we simply are not in a position that I would be comfortable going up any more. With the interest we'll save by NOT having the block over the next year or two, we'll be able to pay their full asking price on the next release (whenever that happens, they seem to be moving very slowly).
We HAVE firmly decided that we DO want to live in this estate though. It is exactly what we want for our lives together, for the youth of our future children. Out of the city, into the bush. Black cockatoos and a veggie patch, kangaroos and hardwood trees.
So, we stayed firm and did not get the property. The real estate agent who represented us said that if there have been no new offers lodged on it before the new year, he thinks they will come back to us and accept. They're just waiting around to see if they can get more money out of someone else, or if we'll panic and come running back with more cash.
Que sera, sera.
We offered X amount, which was SIGNIFICANTLY lower than their original asking price, and another $30k lower than their advertised "sale" price. They came back with a counteroffer of $4k lower than their sale price. We counteroffered our original offer again. They came back with $15k below their sale price. And that's where they stayed firm. The difference of $15k isn't much when considering the overall price of the block, but we simply are not in a position that I would be comfortable going up any more. With the interest we'll save by NOT having the block over the next year or two, we'll be able to pay their full asking price on the next release (whenever that happens, they seem to be moving very slowly).
We HAVE firmly decided that we DO want to live in this estate though. It is exactly what we want for our lives together, for the youth of our future children. Out of the city, into the bush. Black cockatoos and a veggie patch, kangaroos and hardwood trees.
So, we stayed firm and did not get the property. The real estate agent who represented us said that if there have been no new offers lodged on it before the new year, he thinks they will come back to us and accept. They're just waiting around to see if they can get more money out of someone else, or if we'll panic and come running back with more cash.
Que sera, sera.
LaraOnline
Ideal_Rock
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rosetta
Ideal_Rock
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Rosebloom
Ideal_Rock
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