House update

Alan from the Teachers Credit Union came around last night, and we filled in the paperwork to sign our lives away for the next 40 years. Yes – 40 years, not a typo…

And just after midday today, he rang to say that the loan was approved (provisionally of course).

The two provisions are a) that my parents sign a stat dec that they will give us $X when the time comes (Mark’s parents have already given us their contribution). And b) that the valuation comes back around the amount that we have offered for the house.

Part a won’t be a problem. We’ll have the stat dec on saturday night (having dinner with the family for Adam’s 40th birthday). Part b could.

Here’s the thing. The property is considered to be “Flood Affected” in both a 100 year and 20 year chance. Which might mean that the credit union won’t give us a cent to spend on that property. Or, they might take into account that the block slopes towards the back, and the house itself is much higher than the level of the land.

If that is taken into account, they’d probably find that although the backyard may get wet every 100 years, the chance of water coming into the house are very, very small.

There is an open house scheduled for saturday morning. Although we have had our offer accepted, and the Credit Union is willing to give us a huge amount of money, the owners could still accept a higher offer at any moment – unless we give them about $1000.

But if we give them the deposit, and the credit union knocks us back, chances are we won’t get the money back.

So we have to decide whether or not to make a $1000 gamble.

In good news, the building inspection went well. Ron, a builder mate of Bev & Ted’s gave the place a thorough going over, and reckons that it’s a good buy for the price. So I think we’ll take the chance.

7 thoughts on “House update”

  1. Heres the thing:
    1. You shouldn’t have to lose your $1000. You need to speak with the agent about getting it back in the event that the sale does not go through. My sister got hers back (she gave about $1800) when she got guzumped.
    2. Which leads to being guzumped. Handing the $1000 over does not guarantee that you won’t be guzumped. It essentially means nothing. We’ve decided that we are not going to put down “holding” deposits anymore because it means jack!! They can still sell to someone else.

    But that’s been our experience. Make sure you can get the $$ back if the sale falls through.

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  2. Fingers crossed. 40 years sounds like such a long time…but here in Tasmania any female teachers born after 1960 have to incrementally increase their retirement age till it reaches 65, the same as for men. So when you have to work for so long, the chances of paying of the loan start looking sunnier!!

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  3. We can pay it back sooner if we want to – this just keeps the repayments low while I’m not working. When I start earning a packet, we’ll be able to pay it off much quicker 🙂

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  4. Life is good at throwing us curved balls but it sure keeps it interesting!

    You’ve probably heard this, but just in case: make fortnightly repayments not monthly – that’s 13 monthly payments a year. Also, even an extra $20 paid over the minimum required can make a big difference!

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  5. In my own land baron experiences, valuations have an uncanny knack of coming in at almost exactly the value required for the percentage of total value you are requesting in your mortgage. Eg you need 80K (80%), presto the valuation comes in at 100K. (Don’t you wish it was only that much?)

    That exact scenario has happened to me three times (for much more money unfortunately). Are they making you get mortgage insurance as well as proviso’s a and b? No doubts the CU will do anything to minimise their risk, mortgage insurance actually removes their risk – makes them keener to give you more. If they don’t come to the party, see a broker who will make sure you get it. And try not to worry – you will get there.

    Don’t you think that sometimes you gotta go home and scrub after meeting these weasels because you feel so contaminated?

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