Getting a house when you have 5% or 20% deposit ?
February 17th, 2008 | by winsonlee |
Address : 2 Greenbush Grove, Waterways
Price : $595,000
Property Type : House
Suburb : Waterways
Region : Melbourne Region
Bedrooms : 4
Bathrooms : 2
Carspaces : 2
Will you be getting a house when you have 5% deposit ? Or you would get a place when you have 20% deposit ? Both has its own advantage. For 20% deposit you would need to save abit longer. But at least you do not need to pay for mortgage insurance. End of the day it depends on how much the property you intend to buy would appreciate. If appreciation is like 2007 which is 30%, then of course go for a property even if you only have 5% deposit!! If you are buying a property with 5% deposit and you are renting it out privately, of course the situation will be different as well.
Stamp duty calculated base on the property value of $595,000.
The table shows the amount of money needed between 20% deposit and 5% deposit.
The graph shows the monthly repayment for 80% of the total property cost.
The graph shows the monthly repayment for 95% of the total property cost.
If you only have 5%, how long more will it takes you before you are able to save up to 20% of the house deposit ? The answer is 1 year and 4 months. Calculation is base on the initial 5% deposit + monthly repayment which is $4254.48. Base on the figure that you have now, is it still worth the wait and save 20% deposit before getting a house ?
