Hi all,

glad I found this site! Learned so much already, what an excellent website!

Ok, basically if someone can advise me it would be a load of my mind.
We are hoping to buy this year, our first home.
Have saved up a $200,000 deposit over the past 4 years.

Business has been running for around 5-6 years and is now streamlined and making great money!! We have been saving around 3 grand per week for the past 6 months and this looks like increasing as we're in a really niche market.

We pay $400 per week in rent, I work from home and we have rented this current place for the past 5 years. We do all the upkeep, rent privately so there have been no rent increases at all.

No debts, none, zilch. Own 2 great cars, worth approx 65K.
Home assets around 60K. Business assets around 100K

1 credit card which is only used for the business and internet, austar etc. Never pay any interested on this as it's always paid off in time.

1 child only.

Wish to buy something around the 700K mark. This means a loan of around $530 inc stamp duty, cost of moving etc etc.

BUT books don't reflect what we have. I am not planning on doing last years tax until April next year as the money is better in my account than the governments. Last years only showed about 48K from memory (as we've been re investing back into the business). Wife is a stay at home Mum who looks after the house and her elderly parents who live in a retirement village.

I am thinking low doc is the way to go. I guess I'm trying to ascertain what our chances are like? 200K is a good saving and a good deposit. The area we want to move to is Yatala Qld, which is where we are now in fact. We don't want to leave the area as it's booming and our child goes to the local school etc.

What are the repayments on 530K? A friend of mine is paying just over $420 a week on a 400K loan, it makes no sense as all the calculators say otherwise..

Any advice would be appreciated. Thanks for reading my essay

Rich_A

Hi Rich,

Firstly I would like to congratulate you in being able to save such a large deposit and placing yourself in a strong asset position with no debt outstanding.

The only issue I can see is in order for you to afford a loan amount of $530k or more you will have to declare an income of more than $75k therefore will have to be GST registered. Depending on how much income you are declaring some lenders require you to be GST registered for more than 2 years to reflect and support the income you have declared.

Repayments on a $530k loan base on an indicative rate of 7% are as follow:
a) Interest Only 30yrs: $3,092 p/m
b) Principal and Interest 30yrs: $3,526 p/m
If you want to change the loan amount or rate please go to http://www.homeloanexperts.com.au/mortg ... alculator/.

Please give us a call if you wish to discuss further.

Cheers
Tina

Hi Tina,

thanks for your information, appreciate it. When you say 75K, you mean net profit after tax I assume? I think we're there this year and next year looks to be even better.

Regards,

Rich_A