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This is only a small house, but for the first house buyer, a house like this is probably the only house that they could afford.
Buying your own house
We have discussed several things already about buying a house,
but what we have not discussed yet is how much of our own money we need; you
see this is the crucial point that any buyer should really try to know before
they buy a house or whatever piece of real estate they are trying to buy. The
first thing you have to assume is that you need a good deposit to buy a house,
if you have been able to save enough money and have a large sum of money for a
deposit, then it is easy to buy and you will not get in financial troubles
later on, but if you try to buy with a small deposit you might run the risk to
lose the property that you have bought, because you might not be able to repay
your loan. So, let us look at a few examples and try to compare them to see
what is involved.
Today here in Australia and I believe in most of the western
world that runs financial matters like we do here in Australia, to buy a house
you can find help in the banks and other financial societies that specialize in
giving loans to people to buy houses or any other sort of Real Estate, and even
the first home buyer is welcome to use them, but there are rules that you have
to follow to qualify for the loan and what does it involve. You see banks and
financial societies need security, in other words they want to feel sure that
you are able to pay them back their capital and also the interest that they
will be charging on the loan.
Therefore for a first home buyer to have a large enough deposit
is necessary, it would also be helpful that this money you have saved to buy
your house, you have deposited in the bank or the financial society that you
are using to apply for the home loan; you see if you have done that they
already have the record of how much money you are able to save in a certain
amount of time. Let us now try to put forward a few examples:
Let me start with the first loan that we used when we bought the
first house. In those times the banks had very strict rules to follow; for the
first home buyer they required that you had a deposit of about 25% of the cost
of the house you were buying, and that the repayment were about ¼ of your wage
that you took home, so in those times people usually were able to pay their
loans, just because the banks had this strict rules to follow. But today they
are willing to loan money more easily, so it is also up to you the buyers to
work out if you can afford the loan repayments easily.
Therefore, because the lenders have relaxed a bit the lending
rules, it is easier for the buyers to borrow a larger sum of money than they
could have borrowed in the past, but this is not always helpful, because you
can borrow more than what you would be able to pay the monthly mortgage when it
becomes due; so buyers beware and don’t rely only on the lenders judgement,
because after all the lender are there to lend you money, so that they can make
more money for themselves; therefore it is important that you should work it
out yourself several time before you get involved, because the banks have their
own ways how to get their money back, if you fail to pay them back, as we will
explain later on. Therefore, what should we be looking for if we want to borrow
a loan that we can afford to pay back? We will explain in our next post a bit
more how the average person could work it out; see you soon.
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This is:
Menfranco general blog,
How much money
IS TO BE CONTINUED;
Next time with, Working how much to borrow
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Some personal and religious links:
Some personal and religious links:
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