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Sam H.
Sam H.
Kellyville, NSW
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We are finding it difficult to save as we have 4 kids, paying $800pw rent and lived in the same home for 3 years. I earn $120,000 and my wife $55,000 … is there a way to borrow given we pay so much in rent, thanks?

4 months ago

Responses

Hi Sam,

If you are having trouble to save for a deposit on a house, one option to consider would be a limited guarantee (if you or your wife had family are in a position and willing to be able to help).

A limited guarantee is where a close family member (different lenders have different policies on who can offer the guarantee) offer up additional security for you to use in lieu of a deposit. This security can be in for the form of a mortgage or second mortgage over an existing property that they own or a term deposit with the lender you are using for the loan.

It is highly recommended that who ever is offering the guarantee get independent legal and financial advice before entering into this type of agreement.

A Mortgage broker will be able to review your situation and your family members situation and let you know if this is possible.

Please feel free to let me know if you any questions.

Good Luck!
Nathan

Dear Sam,

I am reluctant to say this, but hopefully, it would be a big help for you,
There is a government website called www.moneysmart.com.au, it has a lot of budgeting and saving tips that can provide you with some tools for savings.

On the other hand, a family guarantee can get your foot in the market by having your parents or siblings guaranteeing you on their property. That eliminates the need for a deposit.

Hopefully that helps.

Please feel free to call on 02 9897 9696 or 0414 545 643.
regards

Hi Sam,
I agree with Michael, your first action is to analyse your budget and your spending to understand what your priorities are.
A 4-5 bedroom home around Kellyville will likely cost at least $1.1m which means repayments would be assessed at more than $7000 per month which would be inviting disaster.
You could look at homes in a less expensive area and try to utilise a family guarantee but definitely get some help and advice.
Best of luck
Scott

Hi Sam,
I live at Beaumont Hills, so am fully aware of housing costs in our area.
If you are serious about breaking the rent cycle, you will need to look at a home slightly outside the immediate area.
I have some first home buyers purchasing a house & land package at Box Hill for around $700k.
Not a massive home, but something similar would be achievable given the level of monthly mortgage repayments, i.e. approximately $3,200 per month.
There are also additional costs that home owners pay that renters don't, i.e. Council & water rates, home insurance and maintenance.
As has been explained, you would achieve this now with a family guarantee, or if you want to sit down with me to look at a structured budget, I'm more than happy to provide some guidance.
Planning future home ownership is something that takes some effort.
Best wishes.

4 months ago

Hi all, thanks for the advice and offering solutions… we don’t have family in a position to help so the family guarantee is not an option for us. Stephen, you seem close so we might give you a call, thanks

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