Pre-Approved

So we've been pre-approved to borrow x amount of dollars. Right now I should be jumping for joy but I really just feel a little down about it all. This means we could possibly be about to take on a massive amount of debt and then the worry will really begin...if we ever find a house to buy that is.

Right now RE agents don't have to lift a finger. Properties in our price range are selling like price reduced beer. Houses in our range are on the market for only hours and they're being snapped up. Either people are buying site unseen or the agents are just calling their lists of potential buyers, their cousins, brothers, aunts...whatever and letting them know the second a property is listed for sale. In the last week I have made enquiries about two homes which had only just been listed and was told on both occasions that these homes could not be inspected prior to the open home. On both occasions these houses miraculously had offers in on them before inspection time.

Today I inspected a home whose contract had fallen over due to the negative building inspection. The RE agent told me he thought the building inspection was a crock and very unfair. I looked, just because I could, and while I agree, to the naked eye, it doesn't appear to have much wrong with it other than it is so small one would need to lose 15 kilos just to fit into the kitchen. It had potential for sure, if one had the money to build in underneath and add another house on. On the positive side it had a large yard and had been freshly painted but it was on a main road and I know we would have killed each other if we all had to live in such close proximity until such time we could afford to expand.

I like to think of myself as a realist and believe I can see past the imperfections and also tell myself to start off small and build from there but it's hard to do. The idea of going from this rental house which has been home for 7 or 8 years and has plenty of space for all of us, into a house almost small enough to be a large tent, is proving difficult to comprehend.

Most people says owning a home is everything and you should do it sooner rather than later because the interest rates will rise, the first home owners grant will disappear and the price of houses will go up but I don't want to push myself into buying something I'm not happy with just to own something. It goes against my belie not buying something until I need it. I don't NEED a home to call my own because let's face it, many people don't even have one to live in let alone one to call their own. I just WANT a home to call my own. Maybe I am too picky and maybe we could all live in something very small...I know we could if we had to but I don't have to so I'm having a hard time trying to convince myself that it's a better option than renting.

This afternoon I called about four properties that were listed on a real estate website with no indication that they were under contract. Four times I was disappointed. Four times the RE agents acted as though they had better things to do than talk to me - like calculating their commissions. So, I might let it rest for four days now because it's tiring and emotionally draining.

The Heat Is On

Hunting for a house is painful and not at all exciting. Right now, because interest rates are so low any house in our price range is selling fast. I almost need to give up my job and make house hunting my full time job. One needs to be ready to pounce immediately. Almost call up on the phone and make an offer before it's even been seen. The amount of people showing up to open houses is astounding and the agents are getting several offers immediately after.

What might be in our favour though is that the lenders are tightening their belts - not many are borrowing any more than 90% of the purchase price. Our broker says that once that starts to filter through to those who haven't already organised pre-approval the prices will drop a little because there will still be people needing to sell their homes and they'll be more open to offers. Those without a deposit will be pushed out of the market. I guess then the greedy investors will still be hankering to get their hands on these properties but I hear that even they are having a hard time getting access to finance.

So, we have time up our sleeves to save a little more money and continue to look. The $14000 First Home Owners Grant is set to expire on June 30 when it will revert back to $7000. There's speculation about whether or not the $14000 will be continued or not. Hopefully for us it will be but it might also mean the prices of houses will drop because even more people will be pushed out of the market making room for us. It will mean however that we will need more savings.

Sometimes I wonder if it's really all worth it. Everyone keeps telling me it is so I'll have to believe them.