Baby Steps

No, not Albert or #3 – these steps are house related.

After the phone call from the agent the other day we decided to get pro-active. We looked at a rental property that afternoon, which was depressing, and then checked our deposit amount. While tiny it is enough to show we can save and it means we don’t have to borrow 100% of the amount we are after. Ideally it would be a larger amount before we had to start but we don’t live in an ideal world.

We ventured out to the land of display homes and four hours later we made it back alive. It appears all is not lost. We ran some figures with one builder and while pushing our upper limits (at a relatively generous interest rate) we could afford to purchase a block and then build on it. Sure it’s a long way from where we want to live and we would have to look at a smaller house to make sure we could absorb the interest hikes coming over the hill but at least now we know. The key for us is to get a larger deposit together; just knocking ten to fifteen grand off what we borrow would make our situation a whole lot better. It’s not that much if you say it quickly.

I was struck though about how tough salesmen have it. I don’t believe one word that comes out of their mouths, not one, and surely these days every person sees straight through the ‘free’ inclusions and super deals ‘just for you’. Poor Robert at Burbank Homes today seemed to think we were going to go buy a block when we left him and then come right back to sign on the dotted line. At least he talked to us though. The people at Devine simply glanced up from their keyboards for two seconds before going back to playing Mine Sweeper, a more disinterested pair you couldn’t wish to find. We walked through their office three times and not once did they address us or ask if we needed assistance. The guy at Metricon was a little better, he at least offered some information. The woman at Porter Davis Homes was good – she was the only one who asked if we had any questions after viewing the properties and the only one who smiled as we left.

We’ve still a lot of work and research to do before making a decision but at least we’ve started and are beginning to learn the questions that we have to ask. Poor Phee and Albert will have many a Sunday ruined by traipsing around after mum and dad before we are in a position to sign our life away.

2 Replies to “Baby Steps”

  1. I assume you’ve previously spoken to banks etc about conventional home loans (eg not on new estates, funded by developers). The banks prefer you borrow no more than 80% of the purchase price, though they will go to 95% (but you’ll pay an additional fee to insure the loan for them).

  2. Morning Daniel.

    We spoke to our bank a while ago, just to get a feel for the figures we would need. The finance person the builder had on call ended up recommending our bank (without knowing we bank with them). We have our deposit funds with ING and they have recently started home loans too so we’ll have a chat with them at some stage. So many chats to have, so many figures flying around.

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