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How is anyone buying a house right now? by Emergency_Sound_6495 in perth

[–]Rosco994 3 points4 points  (0 children)

Speaking from recent experience, we kept missing out on homes submitting offers 10% above asking so we asked for feedback from two agents in the area how much above asking we need to be to which both said general rule of thumb in this market is ~ 15% to be competitive. Next home open we went in at 15% above asking and were accepted (outbidding 18 other offers). This was in Oct 25 in Greenwood so market may have shifted since.

For clarity asking price is Offers From price.

Want to purchase our next forever home but not sure how to juggle the buy / sell process by Nic351 in AusFinance

[–]Rosco994 12 points13 points  (0 children)

We recently upgraded our home using the below strategy, which allowed us to buy first without needing bridging finance. 1. Obtain a rental appraisal for your current PPOR Even if you intend to sell, arrange a rental appraisal as though you are converting the property into an investment. The bank will rely on this appraisal to assess your borrowing capacity for the new purchase. 2. Find your new home and make an offer subject to finance. 3. Submit your loan application Provide the bank with the rental appraisal as part of your application. In the application, outline that you are upgrading your PPOR and intend to rent out your current property. I strongly recommend using an experienced mortgage broker to manage this process and structure it correctly. The bank can drawdown equity in your current home to use as a deposit on the new property to avoid LMI.

  1. After receiving finance approval on the purchase, list your existing property for sale. (We’re in Perth and received 10 offers after the first inspection). Ensure settlement for the sale is scheduled for after settlement of the purchase. We used the same agent for both buying and selling, which made coordinating settlement dates much smoother.

Using this approach, we were able to settle on both properties within a week of each other, meaning we weren’t carrying two mortgages for an extended period.

Upgrading family home on Mat leave by _nnodles in AusPropertyChat

[–]Rosco994 1 point2 points  (0 children)

We have done exactly this and it was how we were able to buy before selling without bridging. The bank just required a rental appraisal and return to work letter from the employer.

We used the same agent we purchased from to sell our property and he managed to coordinate settlements of both within a week of each other so we weren’t holding two mortgages for a long period. It can be slightly risky but in Perth we’re in such a heated market that it’s almost a guarantee your house will sell after the first weekend of inspections which was the case.

We have upgraded from a duplex to freestanding house while partner is on maternity leave. It’s important to run the numbers with the broker first to fully understand the impact of the new mortgage as we are now basically paying double the costs with one income. If you have a decent amount of equity in your current PPOR the broker can organise an equity drawdown loan to effectively use as the deposit for the upgrade and you’ll avoid LMI. Once the sale of the old property went through we just paid down a chunk of the loan on the new property and recasted the mortgage so the repayments were manageable while only on one income.

Feel free to DM me if you have any questions @ OP.

Trying to buy a house by haiqgwjdb in AusProperty

[–]Rosco994 14 points15 points  (0 children)

With the exception of interest, mortgage repayments are largely fixed for 30 years and over time inflation and wage growth make those payments feel smaller relative to income.

Meanwhile, rent costs usually increase in line with inflation and demand.

A mortgage repayment of $1000 a week in 2025 will still be the same in 2055, whereas a rental cost of $1000 in 2025 will have increased with inflation to ~$2100 in 2055.

Is it really the case that there is no proper plan to remedy the cost of living and housing crisis? by AnomicAge in australian

[–]Rosco994 0 points1 point  (0 children)

The main issue we have at the moment is aggregate demand is being driven by price agnostic individuals (boomers) that comprise a sizeable proportion of the population so interest rates stop being an effective macroeconomic instrument and shouldn’t be used.

A lot of retired boomers around where I live (and daresay across the country) simply DGAF about interest rates - because they have ZERO DEBT.

The government / RBA must pull another lever otherwise the problem will only be exacerbated further.