Monday, May 11, 2009

We'll Keep on Looking - and Saving

We didn't get the house.


We decided that it would be too risky for us at the moment to buy at auction. One bank (one of the big 4) has still yet to look at our application for a pre-approval - it has taken them 4 weeks so far. With the banks taking so long at the moment to give pre-approvals we had absolutely no confidence in them getting the loan organised in time for settlement. The house sold for $20,000.00 more than our upper limit anyway, so even if we had our finance sorted out we wouldn't have won the auction.


I do feel empowered in the decisions we made during this exercise. Even though I loved the house (it was perfect) we (or should I say I) was able to make rational decisions about the price we were willing to pay, the loan options we wanted as well as the ultimate decision about risk concerning the auction. I understand some people will pay anything and take any loan they can get in order to buy a particular house. That then leaves them with a lovely house, but with huge debt that they really can't afford to repay. I have heard stories of people living off their credit cards because their mortgage repayments are so high. They then roll the credit card debt into their mortgage as the house increases in value so they can start the cycle again.


This was exactly the situation we do not want to get into. Last year we made the decision to live off one income so we could give Miss Berry what we believe is the most important thing - time and attention that comes from having one parent stay at home. This means that we not only have to rent for longer whilst we save for a deposit, but also that we need a bigger deposit so that our mortgage repayments are low enough to maintain our current lifestyle on one income.


Although it will take longer to get our own house, I am happy with our decision. It has made it a lot easier to stay on budget and i think it's because the decision was ours. If we had been forced into this it would be a lot harder.

So we will keep on saving and I will keep on looking. I am sure the right house will come at the right time. There are after all, a lot of houses in our area. Surely some of them will be perfect?

2 comments:

Kelly said...

That's okay that the house went to someone else. It sounded risky. Hang in there, the right one will show up, and won't be stressful.

Emma @ the Berry Patch said...

Thanks Kelly,
I know the right one will turn up.
Emma

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