“9 years ago I took the plunge in buying my first Sydney property, a modest 2 bedroom apartment in Alexandria. I remember procrastinating for at least 2 years before I made that decision, thinking I didn’t have enough deposit and coming up with all sorts of excuses. In 2012, I sold the apartment, but I regretted delaying the decision to buy as all my fears back then turned out to be completely unfounded. If you’re looking to buy your first home and you have some doubts, I suggest you talk to the experts to get a different perspective and to demystify potential misconceptions.”
– Chen, aged 40
When someone recently shared a facebook post about a New Home Owners Seminar we are running in two weeks, they included the above comments. It so perfectly sums up the reason why we are running the seminar, because we hear it all the time. Much of the information we have about buying a property or getting a loan comes from our parents or friends so it makes sense really that the beliefs we hold don’t always match reality.
Our parents bought property under very different lending conditions that were much stricter than they are now. For example, lenders now accept a broad range of income types, including casual, part-time, rental income, dividends and government assistance. However, not all lenders have the same policies. For example, AMP will accept 100% of investment property rental, but CBA (and most others) will only accept 80%. Some lenders will only accept casual income if you’ve been in the same casual position for over 3 months or your income tax return reflects 2 years of casual income but only if it’s in the same industry.
Your friends, while it might look like they are more similar to you than your parents, their circumstances can be so different from a lending perspective to render their opinion at best, confusing and at worse, completely redundant. Differences like, when did they borrow? Even 2 years ago lending practices were much more restricted than they are now. But what about the effect of marriage or having children on their ability to borrow? The size of the property? Or the location of the property? The credit limit of their credit cards?
There are just so many variables for both the individual borrower and the most appropriate lender, than it is unlikely you are ever comparing apples with apples.
When I asked Chen’s permission to use his comments, he was as emphatic as we are at Calla Property. Having that first hand experience and knowing all the reasons that held you back makes you both understand the importance of good, current information that is tailor made to your circumstances as well as regret not doing something earlier. In this current market, how much is it costing you to stay out of the market?
So stop making excuses and call today to find out what you think you know.
02 9016 2852