I went into my bank to get some home loan info, and the woman gave me a few piles of paperwork to look through.
When I was leaving I asked about the no deposit home loans (as it was still on their website) and she said that they don't offer them anymore.
What a big fat waste of time!
I have made a few more enqiries to various banks and compiled some information and compared some loan features.
I also made a couple of online enquiries. One was to a bank which BF's dad has his home loan with. They sent me an email with some info. I didn't exactly understand what it was saying so I called them to ask some questions.
My first question was whether or not they do 100% loans anymore. His answer was no. I asked him if that was even if we had the money to cover Mortgage Insurance and Fees, on top of the First Home Owners Grant.
He paused for a few seconds and then asked me to tell him how much money we have saved, what we want to borrow, and our earning details. When I told him he was surprised and said that we had a 3% deposit and then some (3% deposit is $9600). I said yes, but that was to cover the Mortgage Insurance, and he said that the FHOG was designed to cover those costs, and the stamp duty and legal fees. I can't believe no one told me that! I have had all these bank people telling me different things but no one has ever said that. I was always under the impression that you got it after you bought the house, as a 'bonus' type thing (like the baby bonus).
Anyway. I am going in on Tuesday to apply for pre approval. I could have done it over the phone but I feel more comfortable doing it in person at a branch so I can explain some things.
Apparently we are able to borrow up to $510 000. I don't understand how anyone could survive on our income with a mortgage payment on $510k. It boggles the mind. I mentioned it to BF's friend, who was at our house at the time, and his response was a rather blunt 'fuck off!!??'. It's nice to know he has faith in our financial abilities. (note: sarcasm)
So that is very very exciting news for us.
The only problem I have is that I am undecided on which package we should be thinking about.
Option 1 (http://www.westpac.com.au/internet/publish.nsf/Content/PBHLPR+Fixed+Options+Home+Loan )
I am thinking that a fixed rate loan would be the way to go at the moment because the rates are down. This bank also gives you the opportunity to lock in for 10 years, which is not an option with a lot of banks (5 years is usually the max). The lock in rate at the moment is 6.99% which is pretty good (bear in mind this is Australia).
The other problem is that I do also like the Rocket Repay Loan, but it doesn't allow the option of a fixed rate.
What would you do? I mean as in, what loan would you choose. (I already know most of you are not thrilled about our choice to buy a home at the moment, but that is not what is on the table here.)
Thankyou for your input!
and... happy New Year!
Archive for December, 2008
I went into my bank to get some home loan info, and the woman gave me a few piles of paperwork to look through.
Well, here we go. Last month of the year!
Job #1: $880.00
Job #2: $1564.60
Taken From Savings: $378.50 (gift fund)
Loan Payments: $148.00
Extra Loan Payments: $20.00
Skin Care: $29.95
Health, Beauty & Grooming: $100.15
Bank Fees: $20.95 (ARGH)
Phone & Internet: $28.00
Car Insurance: $474.86
Mobile Phone: $96.58 (1st bill)
Takeaway Beverages: $86.00
Takeaway Food/Dining Out: $137.80
Clothes & Shoes: $115.54
Staff Lotto: $8.00
Accomodation: $152.50 (for 2 nights in Jan)
I am not exactly sure how I should be working this. Any suggestions are welcome:
I automatically transfer $65 per week into a bills account, and then I pay all my bills on CC then transfer the money over at the end of each cycle. I don't keep a running tally of my bills account though because I buy EVERYTHING on CC and transfer that amount each day into the bills account. So I have two totals in my bills account: CC balance and yearly bills. Ideally I should have enough money at any given time in my Bills Ac, as well as whatever I charge on my CC, for car repairs, car insurance, rego, racq, electricity, phone & internet etc etc etc.
Does that make any sense? So I am thinking I should be keeping a running tally of how much is there for bills as well. Hmm... I might start a few new spreadsheets and tinker around with tracking systems so I have a new system for 2009. Exciting, but dreary at the same time...
Ok, so an analysis of my December spending leads me to the realisation that I hate bank fees. And no, before you suggest, I am not changing banks to a fee free account. It's a bit too tricky to do that right now.
Petrol: Good. Under budget.
Groceries: Good. Under budget.
Bills: well, all bills were higher than expected. car insurance went up $80 because I no longer get the discount my friend organised for me. SHUCKS! (I got it a year longer than I meant to get it though so I am happy!)
Made some small, extra payments on my loan which I am happy about. I don't want to do anything drastic because, even though I'll get people breathing down my neck about it here, it's not my main priority at the moment.
Savings I am quite happy about.
Grooming, well, not thrilled about that. $74 for a haircut? bah.
Fun categories: *sigh* Not too bad but not great either. Somehow spent $54 on alcohol even though I hardly ever DRINK! bah.
There's my totals for December!
-No alcohol expenses.
-No makeup expenses.
-No magazine or book purchases.
-Limit takeaway food/dining out to $150.
-Clothes and shoes... oooh... can I do it??? goal: under $80 for January.
... anonymous comments that just put people down for sharing something on their blog, and often don't take into consideration the full story. I know lots of people on here are annoyed at them, am I right?
I just delete them basically straight away, but I still find it tragic that the person feels the need to force their views on someone anonymously (it strikes me as very cowardly) and talk in the tone that think they know everything, or know better than the person compared to who they just commented on.
My most recent one: (normally I wouldn't bother, but I wanted to explain this anyway so no one else gets the wrong idea about my state of mind) a comment on a previous entry about my flatmate getting pregnant, and my observation on how a lot of our friends are pregnant, and that it would be nice to have kids when your friends have kids so that they can grow up together. The comment said something along the lines of (not in the same words) 'yeah get pregnant because all your friends are, great idea, NOT!!!'.
Anyway, I just wanted to explain some things.
Firstly, I'm not planning on having children any time soon. I would like to be atleast a little financially set up first. I would like to be confident that I can stay home for atleast a year, if not until the child goes to primary school. I'm not particularly fond of daycare.
I would ideally like to plan to some extent, when I have a baby. I don't mean the specific date, or even the season. I mean our age, our location of living etc. I mean, I would like to be able to talk to my partner and say 'maybe we should start thinking about starting a family soon' etc etc.
I would like to be in the right state of mind, and welcome the idea of pregnancy and family.
Another pro at planning is that I can ensure that I am 100% healthy before and during the early stages of pregnancy, which are proven to be the most important in feotal development. Even though it's not entirely necessary - well, it hasn't been proven conclusively - BF has said he too would like to make sure he was completely healthy and had consumed no alcohol from the moment of 'trying for' a baby.
I don't care about having a baby 'when my friends have babies'. I said it would be nice. But that was ONLY in the context of an observation I made about FIVE FRIENDS HAVING CHILDREN IN THE SAME YEAR.
I'm not a 16 year old getting clucky and wanting to have a baby with my bucktoothed, jobless fling who lives in a trailer. Nor am I some ditzy housewife who has images in my head of 'mothers group' consisting of all my friends, birthday parties where they all play together just so we can 'socialise and drink wine and eat cheese together'.
The only reason I would want our friends children growing up with my children is because I know that my friends have the same values and morals as we do, and that I would trust our friends with our children, and vice versa.
Another point I wanted to make was that, besides myself (can I make the point AGAIN that I am not planning on having children for awhile?), all of our friends, who are having children, are the ages of: 25 & 32, 29 & 31, 28 & 30, 28 & 28, 27 & 31. So they are not exactly making irrational decisions, immature decisions etc. With the exception of my flatmate and her BF, all of these couples have been together for 6 + years, most of them 10+ years.
ME2 wanted to make some snide comment on a post of mine to make me look immature and stupid. I am hoping the rest of you don't think I am that stupid, and that you all understand where I am coming from. I don't particularly care what ME2 has to say on this post and it's highly likely that their comment will be deleted anyway. I mainly wrote this post for those of you who share your opinions honestly and openly with me. So thankyou for reading.
considering i'm not a kid i think i got a nice haul of presents this christmas:
$50 voucher from job #2
$150 cash from job #1
$100 voucher from BF
teatowels and a knife sharpener from BF
a hand fan from BF
an airfrehsener in the shape of elvis from BF
a scalpel set and screen printing paint from flatmate and her BF
season 4 of battlestar galactica, some shirts and cds from my dad
the little book of calm from a friend
Also I just redeemed a $20 voucher from a survey site.
We have also decided that we will be doing New Years a day early (so... tonight!) so that BF and his friend can do more work on the shed, and it also means that I won't have to drive there.
I am a little relieved, I have never driven there by myself, and also if we were to be eating at BF's friends house - his mother always cooks and all they ever eat is meat and three veg - a little bit of a problem for me! They also think everyone should eat meat, EVERY day.
The downside is that flatmate seems to think she doesnt live here anymore (well - except her leaving stuff here and doing her washing) so every time she and her BF come here, they make all this mess, leave everything lying around, make a whole heap of dishes and then leave. It's really starting to piss me off, but I also don't want to say anything because she will only be here for another month (and most of that time won't be here at all) and also whenever I DO say something, her BF does the work, which I don't really think is fair.
Just a bit of ranting!
Well I am by myself for most of this week again. BF is helping his friend and sister build their shed. I am working today (monday) and friday so I can't really go away with him. Plus I am looking after the dogs (three of them!) so I have to be here to feed them. On Wednesday I am going there for New Years Eve and we will probably camp on our friends land which will be different to our last New Years - which was in the city. They have no power yet either which could be tricky! All I'm really worried about is the toilet ... :O
I am having coffee with some friends this afternoon but other than that I am trying to have a low profile and not spend much money.
I have some plans for this afternoon, to fit them all in before my coffee date (4pm). I finish work at 1.30pm.
-40 min cycling
-wash the dogs (yess all three of them)
-call the real estate agent and see if that house is still for sale
-wash and straighten my hair
-bleach the shower
-clean the drains
does anyone know a good way to stop drains from smelling? i tried bicard, vinegar and hot water but it didn't seem to work. i just want to know if anyone ahs any solutions OTHER than buying something. i have bleach, eucalyptus oil, vinegar, bicard, disinfectant...
last night i had steamed veges and rice for dinner, and tonight i'll have fried rice as I kept the left over rice. I have been using some of the veges in the freezer, they seem to have worked out alright and still have plenty of flavour.
I spent $23 at the supermarket yesterday and bought a lot of fruit, some kidney beans, sugar, yoghurt etc. I am hoping I won't have to buy anything else from the shops this week except milk.
Our flatmate (BF's sister) and her BF gave us the news on Christmas Day along with all the other family, except I already was pretty sure that she was. She is 11.5 weeks. They are due in June.
Now BF has 5 different friends who are expecting in the new year!
It is nice when that happens. Do you ever think sometimes there seems to be spurts of people having babies? And there will be heaps of people you know having children all at the same time? Weird!
I said to BF we will have to try and 'catch the next lot' (as a joke! I know it sounds crude). It would be nice to have children when your friends have children, though, so they can grow up together. BF's response was 'or we can just have a baby now...?'
I just want to write some things down so I can get a clear picture. Excuse my babbling!
There is a house we have found which is more than perfect for what we want. It's $319 000 asking price, which we could probably bargain down to $317 000 (or less), which is then atkeast 3k under our target amount for a house.
(the house is on an 805m2 block, 4 bedrooms, built in downstairs, three decks, a shed etc - i might post pictures in a week if it's still available)
We would have to resign our lease, which will then expire 19th April.
If we look into buying this house, if it's still unsold and no one else is interested, we could probably have everything done in a month to two months which would mean we would have to cancel our lease contract, which is really no biggy anyway with the rental crisis looming.
If we buy the house, we have approx $12-$13k saved. It would cover the mortgage insurance ($11.5k) and some fees. We either have a choice of putting the solicitor fees and building inspection fees on my cc and paying it back once the FHOG is granted. The rest of the FHOG (total is $14k) will go back into the mortgage to remain until we need it for renovations. (Please note: I don't need credit card preaching, so don't bother. That is not the issue I am discussing.)
Another choice we have is privately borrowing 5k from BF's mum in return for some labour work at her property which he is fine with doing. That would cover the fees.
If we don't buy this property, we have to start looking for others pretty soon. Ideally we would like to be in our own place atleast a month before our lease expires for breathing space (so, mid-march).
Why? you ask. why not rent longer?
A few reasons. We would be required to sign a 6 or 12 month lease in our next rental property, which would take us up to october. The rent we would be paying would be about the same cost or more as a mortgage per week. This would mean the only money we would be saving would be spare change plus other costs we don't have as a rental verse homeowner, like rates and water etc.
another reason is that the 14k FHOG expires on june 30th, going back down to 7k.
if we were to wait until after then, probably when a six month lease expires in october, we would not have that extra amount saved due to paying a lot of rent etc (as it would just be BF and I paying rent verse right now it being BF, myself and flatmate). so ideally we are looking at having $27k now ($14k of which comes AFTER we buy the contract), or having possibly $20k in six months time.
why pay mortgage insurance? i know it's a lot of money for really nothing, however - the FHOG is $14k, which covers the MI plus fees. if we DON'T utilise that, it means we are paying $5k MI (in october) of our own money, plus a 5% deposit and fees. so really the only difference is that we are into our own house sooner and paying it off sooner.
this way, while nothing is essentially free, we are able to save 6 months worth of dead rent money by putting it into our mortgage sooner, and we are able to utilise the upped FHOG - which was introduced to 'save' the economy.
All it really rests on now is whether the house is still unsold, and whether I can get approved for a loan in time.
Well it seems that as soon as I make the plan of not spending any money on clothes this year, bargains leap out at me when I'm walking along. It's just not fair!
On Tuesday I made the decision to see a movie by myself (first time ever!). I'd finished all my work for the week and it was cheap Tuesday. I planned to see Four Holidays because it sounded funny, but when I got there I just couldn't do it. I'm just not a Christmassy, chick-flicky girl. So I bought a ticket to see Quantum of Solace (again). I felt like a huge weight had been lifted once I bought that ticket... odd, I know...
Anyway I had half an hour to kill so I was going to grab a bottle of water and a juice, but I walked past a shop that I sometimes buy things from and they had a 50% off everything sale, and a few tables and racks of things for $5. I found eight items I liked for $5 each but eventually narrowed it down to five. So, $25 later...
In my defence that is a great deal. I got a pair of knee length black shorts, a plain black tshirt, a black singlet with silver detailing, an orange button up cardigan and another black shirt with some neckline detailing.
And later that day a friend asked me if I wanted to go bowling with her and her sister. So I did. I got $2 off because the guy put us through as students, which was nice. (I am soooooooo not a student...) So I spent $25 on clothes, $5.95 on a cold drink, $9.50 on a movie, $17 on two games of ten pin bowling, $6 on drinks and $5.60 on icecream.
Way to go on the not spending money thing, eh!?
I'm not going to beat myself up about it. It's December. Tis the season. And I am sure I spent a lot less than many other people this year.
My boss and his wife were not that long ago, at our staff christmas party, complaining about each others taste in music (he likes, according to her 'head-banging sh*t' and she likes, he says, 'sloppy commercial cr*p').
I laughed at them but it got me thinking and BF and I ended up talking about it.
I asked him if he ever thought that, or would think that, about any of my tastes and he said that, considering we have almost identical taste in most things, he didn't think that would happen.
And it's true. Although we have our 'number one favourites' which may not be the same thing (band, movie, car, food) we do like the same things.
And I couldn't help thinking how different it would be if we didn't like the same things, and how many arguments we have saved (considering we've had about two arguments in the near-six years we've been together).
There are only a few things I can think of that BF likes that I don't ( GTA and other computer games that go no where, fried food, guns, lots of 'stuff') and things that I like that BF doesn't (sour food, high heels, trance), but in general we like very much the same things.
Of course this doesn't directly relate to finance, but in a way it does slightly. Personally I think having similar interests is cheaper. For example, BF and I take turns in buying CD's. Because we like the same music, we have a 'merged' music collection (with many doubles from before we were together). I can't help thinking that if we liked different music we would most likely have double the amount of music and separate CD collections. We are happy seeing movies we both like, which means we don't have to see a movie one of us doesn't like, which then means we don't have to take 'turns' choosing a movie.
Those are only a couple of things I can think of but there must be more. I remember reading a post from someone ages ago who said that they used to buy two types of peanut butter (crunchy and smooth).
I was wondering how many of you out there have the same tastes as your partners or have completely different tastes? what works? what doesn't? how do you compromise?
The only thing I got out of hearing my boss and his wife argue was that I think in the end it's important to respect other people's choices.
Live and let live.
because I ended up having to go back to the shopping plza to buy some blank shirts for my family who live two states away. (so i could screenprint on them). i was also unable to find anything relating to spongebob which led me to go to ANOTHER shopping place on Sunday. (so I went to three in two days - blergh!)
I also somehow managed to buy three pairs of shoes and two pairs of shorts for myself...
So in the end I spent around $72 on gifts and $59.86 on clothes for myself. (I KNOW! straight after I said I wouldn't be buying any more clothes this year...)
In my defence, the shorts were 2 for $30, and the shoes cost $5.86 for one pair and $12 each for the other two pairs.
Oh, and guess what! I already own two pairs of the shorts I bought but they are a little big... I was able to buy them a size smaller this time. Woohoo!
Last night I did almost all the christmas shopping except for FM's present. In my last entry I mentioned we were buying $5 presents for each other. They are meant to be funny. So last night I was in one of those cheap stores and I saw all these matchbox cars. I didn't think BF would want any so I showed him one, which was an Alfa Romeo (one of the old ones - just because most of the cars were flashy new ones and really classic models and then there was the Alfa - which I know is one of the classic Alfas but still - it doesn't look like all the others) and he was like 'that's cool you should buy it' and then i was like 'darn if i didn't show you i could have given you that!' But never mind!
Then Flatmate and I were shopping in Kmart and came across the same cars (but 10c dearer). They had a lot more varieties and we found a Smart Car there. We laughed about it a bit and then I jokingly said how funny it would be to get that and wrap it and give it to BF as he would think it was the Alfa. She said that would be hilarious so I got it.
I also got BF a glowstick ring and a rubiks cube. I got FM's boyfriend some fluffy dice. I have to get FM something for $1 as I bought her a hairclip in the shape of a little scottish-terrier. I was thinking something spongebob seeing as she likes him. (and yes, we're talking about a 24 year old)
Tonight we are going late-night-shopping to get our christmas presents. Now, I know I said we don't 'do' christmas. And technically we're not really. All we are adoing is buying $5 gifts for each other (BF & myself, FM and her boyfriend). And I bought BF a little present too, a few weeks ago.
I bought him some cufflinks with the gear-shift tops (1-3-5,2-4-R). I don't know what you would call that?
Anyway, they cost $23.25.
So all up Christmas presents cost me $38.25. I already have wrapping paper and all that crap. The only other things I will need to buy is some feta and pastry for the tart for Xmas Day.