Financing the house

I’m trying to do the math on buying a house.

There are a few interesting calculators online, that try and work out how much you can borrow. When supplied details, the Commonwealth Bank’s response seemed to be $200,000 on one calculator, and the other states it’s $379,000. The $379,000 value is far more comfortable than the $200,000 value.

Considering the current grants that are available to home buyers, and deposit amounts, as well as the house prices, we’d need to look at $330,000 or so to get a viable house.

When I say viable, I’m not simply looking at a house. I’m looking at a house with a future- so one which isn’t falling over, one which is within 2000m of the telephone exchange, has an adequate number of rooms, and room to park the car. Thinking of the car – Hmmm.. It failed rego again. Bugger it. There goes another $500 on minor repairs.

Money. It’s crazy. I can’t seem to put a Yes or No answer on a house. Maybe this will just need to be one of those impulse decisions where I simply say “F*%K IT”, and do it. On the other hand, Savings is a useful asset. With money saved, there is security. Without it, your pretty well F*%Ked, if you have to pay the home loan out of thin air…

The information available to home buyers is adequate, the psychic abilities that can forecast if the move will be a move towards stability, or a move towards instability. We could continue renting, but then we aren’t growing, because the owners fat wallets are. The money paid renting isn’t buying us anything. A home loan on the other hand, we are paying near twice the price to own a house. But, once owned, it’s ours.

I have no idea how a single income family would do this. I think of a mother, 2 children buying a house. The mother works and brings in less than $50,000 a year..  She may not have a deposit. Is her and the children doomed to renting? Our situation is a little bit more stable than the above.

The focus for me will always be on protecting the savings.. I realise of course, without paying rent, and adding to Savings, the funds there would otherwise be available for food, clothing and perhaps even more loan repayments..

There’s a lot to consider, and that’s before you nail down the requirements and pick the house (we have found one or two of interest).

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