Thursday, May 04, 2006

We're clever but we're clueless.

People (who have money and three houses) will tell you that paying rent is a waste of money. 'Why be paying money off a property you don't own when you can be paying it off a mortgage on your own house'. These people (who have money and three or even four houses) are wrong. There is no interest rate (particularly now) or house that isn't something on the edge of a swamp hundreds of miles from civilisation that would make this statement even remotely true.

Last night the man and I worked out a budget together. There was the sacrifices (like getting a cat or at least a cat that eats), the tears (we have how much left over after expenses??), there was the pessimism (me but I like to refer to it as being realistic), there was the boundless enthusiam that is unfortuantely infectious (the man).

The man has found a place. It's in Moonee Ponds and apparently it's perfect. I would love to buy an apartment. Unfortuantely I have a car loan and other expenses that come with a car. I also lived at Woodstock Crt for a year and have a feeling that I might not have the most blemish free credit report. There were a couple of phone bills that were paid late and I'm pretty sure that counts against me for 5 years or so. I mean I'm no Pixie Skase but it probably won't look good.

I have a feeling that a bank would laugh at me. The man is also looking at Aussie home loans so if anyone has any experience with them let me know. The big guy on the ad seems alright so I hope we get him.

It is very exciting times in my world at the moment. I just wish I knew an eentsy weensty little bit more about the property market, or even just property.

Stay tuned.

- Jen


Anonymous said...

late payments dont count towards your credt record i think jen. If it gets so bad that its referred to a collection agency, then you might be in strife, but apart from that, you'll be gravy!

Mike said...

Your right about the interest rates making it harder for new home buyers.
You would be surprised who the banks will lend money to, heck they even gave me money haha.
Finally - how big is the place your looking at getting? If its big enough maybe you could rent a room to somebody? That way you could get some money to help pay the mortgage and pay the bills?