What would you do in my situation? (Home Loan/Business/Starting a family)

CryssieJade on 29/04/2022 - 14:32
Last edited 29/04/2022 - 14:33

Tricky situation here and a lot of things going on, so bear with me…

  • Casual/Self Employed wage (Photographer). No possibility of going full time with my employer.

  • Been saving for a house deposit for 4 years, I have saved a very healthy deposit.

  • The only broker that has offered me a loan of any kind, has told me that I can borrow only $130,000 (I was hoping for $200,000).

  • My loan application is tricky because of my income source, and that my industry was affected by lockdowns. Lenders barely want to know about me because I was on Jobkeeper.

  • I have been advised to potentially wait until June 30 so that my next tax return could make my loan amount higher (Self Employed/Casual loan applications are based on multiple tax returns to show a pattern of yearly 'salary')

  • The problem is, I was on government payments this financial year too, because of Covid lockdowns, so it's not as though that 'undesirable income' is going to drop away any time soon

  • I am 38, planning to have children, so time is of the essence with that too

  • I can't wait for this loan forever, and I need the loan before I can start having children (dependants will affect my tiny borrowing power).

  • My other option is to give up everything I've worked for for years as a Sole Trader, and just get a full time job doing anything, so that I can get the loan I want, and fast. OBVIOUSLY I don't want it to get to that, because I'm proud of the business I have created.

Any advice? Thoughts? What would you do?
Would you keep chipping away at your own business that you love and have worked so hard to build and take the small loan so you can make your dreams of having a family come true? Or would you get a full-time job in any industry just to get the loan you wanted, give up everything you've worked hard for for so long, in order to do the same?

I'm just so torn.
For the record, I live in suburban Melbourne and I intend to stay here.

Financial

Comments

  • GG57 on 29/04/2022 - 14:34
    +5

    For clarity, do you have a partner whose income you could (jointly) use in the loan application?

    • CryssieJade on 29/04/2022 - 14:39
      +12

      No. I will be having a family with a sperm donor. All of this is on me (and I'm damn proud!)

      • GG57 on 29/04/2022 - 14:44
        +13

        Good for you.
        I'm not sure I can help with the financing question, but please ensure that you consider your ability to pay and your work/income downtime due to family commitments. Others I know of in these circumstances really struggled on both fronts for a couple of years, particularly if not supported by others.
        I hope it goes well for you.

        • CryssieJade on 29/04/2022 - 14:51
          +3

          Thank you 😊
          Yes, I'm drowning in a lot of thinking right now. My Mum raised me alone and although it wasn't easy for both of us, I learned how to live off of almost nothing. That's how I have managed to save so much in a fairly short period of time. I know I can do this. If only I know what to do lol

          • BlueberryOrangeJuice on 01/05/2022 - 13:12

            @CryssieJade: Have you saved enough to buy a house with the $200k loan? E.g. have you saved 400k for a 600k house?

            • CryssieJade on 01/05/2022 - 15:27

              @BlueberryOrangeJuice: I'm aiming for a 2 bed unit with a courtyard, not a house

              • MrFunSocks on 01/05/2022 - 15:35
                +5

                @CryssieJade: People could really offer more useful advice if you'd let us know your deposit size and your earnings. Without that it's all just guesses.

                • rektrading on 01/05/2022 - 15:44
                  +2

                  @MrFunSocks:

                  If I was to take the tiny loan of $130k, I would be over 60% LVR.

                  Someone good with maths can work out the deposit.

                  • BlueberryOrangeJuice on 01/05/2022 - 19:37
                    +3

                    @CryssieJade: So thinking long term, starting a single parent family is costly, and you’d need to factor those costs in to ensure you can service the loan repayments.

                    Also the unexpected costs can be sky high if there are any issues with pregnancy. So best for you to have a ‘what if’ fund just in case (also get insurance).

                    As far as the career situation goes, the free spirit in me wants to say keep chasing your photography dreams, but do you reckon you’ll be able to put as much attention into your business when you have a family to look after too? Only you’ll know the answer to that.

                    Either way, all the best.

          • jellykingdom on 03/05/2022 - 16:33

            @CryssieJade: You mention you learned to live with almost nothing. But do you want your kid to have the same experience?

            Why the need to buy…? You could just rent a nicer place? I know it's not the dream for most people but as someone who has done both, there was something freeing about letting other people worry about your house maintenance

  • [Deactivated] on 29/04/2022 - 14:35
    +8

    I am assuming you are a woman based on your name and the fact that you said your biological clock is ticking, so my suggestion would be to freeze your eggs in order to buy yourself time.

    no other brokers that you can talk to for a second opinion (that you haven't already asked)?

    • CryssieJade on 29/04/2022 - 14:38

      I'm about to start IVF, so same/same really. I'm onto my third broker already, unfortunately.

      • Mrokire on 01/05/2022 - 08:08
        +1

        hm the ivf cost?

        • CryssieJade on 01/05/2022 - 08:33

          I have separate money set aside for a couple of rounds

          • FlyingMiffy on 01/05/2022 - 12:41
            +2

            @CryssieJade: The cost for just egg extraction is much cheaper than the full IVF process so it might be worth thinking about if reducing the time pressure helps with your situation.

            • CryssieJade on 01/05/2022 - 15:29

              @FlyingMiffy: I'm actually going through IUI, but more people here are familiar with the term IVF. My procedures will much cheaper than IVF, yes 🙂

  • reno on 29/04/2022 - 14:37
    +5

    Go with specialist brokers/lenders such as pepper who deal with situations and circumstances like this (higher risk ratings). Their rates would be higher, but at least you can get a loan

      • OzCheapo on 29/04/2022 - 15:05
        +5

        Reno's right, you can try and go with Pepper and refinance with a Big 4 a few months down the track. If you're not willing to compromise, it'll be difficult to find a lender who will accede to your terms

      • Mr Krinkle on 29/04/2022 - 18:53
        +5

        There are a couple of non-conventional lenders to go with. I'm with Pepper and the process went extremely well with excellent service. I've put the links to the others I uncovered during my research.

        Yes the rates are higher but I was able to get a high LVR with a variable home loan that I'm able to start building equity into. I would have had to wait a lot longer if I went conventional.

        Liberty Financial https://www.liberty.com.au/home-loans/self-employed
        Victorian Mortgage Group https://vicgroup.com.au/home-loans/
        Paramount https://paramountmortgages.com.au/our-products/mortgages/
        Pepper https://www.pepper.com.au/lending/home-loans/self-employed

        • CryssieJade on 29/04/2022 - 19:18
          +1

          Thank you for this, Pepper is the only one I had heard of. Will at least make some enquiries, can't hurt 😊

          • damolol on 01/05/2022 - 10:31
            +2

            @CryssieJade: We have just refinanced and we looked into both pepper money and another lender called Firstmac. At Firstmac we were able to borrow an additional 100k. We did it through a broker so never dealt with first Mac directly. Maybe call and ask them to give you a ballpark to see if it’s worth pursuing a loan with them.

            • CryssieJade on 01/05/2022 - 11:49

              @damolol: Are there brokers who deal only with those non-conventional lenders?

              • damolol on 01/05/2022 - 13:56
                +1

                @CryssieJade: I believe a mortgage broker can only deal with lenders that they are ‘registered’ with. Most brokers are ‘registered’ with a fair few. Pepper and Firstmac aren’t as well known so most probably wouldn’t be registered with them.

                • Kinko82 on 02/05/2022 - 22:54

                  @damolol: Most brokers would be accredited with Pepper as they are a very popular non-bank lender.

                  Also, the higher interest rate on these options doesn’t have to be permanent. Many clients use these non bank lenders To achieve what they need and once their situation is acceptable by major banks, they will refinance out to a bank for a better rate.

        • michaelTito on 01/05/2022 - 23:51

          add bluestone to the list

      • greatlamp on 01/05/2022 - 07:28
        +2

        I also agree with Reno, the best option is to get an expensive loan from a specialist lender, and refinance after 1 year.

        Normal lenders have been hit with many new regulations following the banking royal commission. They would rather not have you as a customer if you are a 'risky' loan.

        I'm assuming you actually earn decent income, it just isn't secure

        • CryssieJade on 01/05/2022 - 08:38

          Thank you, I am considering this now, I'll swallow my pride until I've made some enquiries 😊

          Do you know if it costs a lot to refinance after a year? I feel like these sorts of decisions come with financial penalties… (variable loan, of course!)

          (Thank you also for acknowledging that I earn decent income, rather than some people on here who assume that I don't! Being self-employed doesnt mean I'm struggling)

          • WhyAmICommenting on 01/05/2022 - 10:22
            +2

            @CryssieJade: Refinance costs on variable is minimal, many banks will pay you a few grand to jump to them so you actually come out ahead.

            • CryssieJade on 01/05/2022 - 11:50

              @WhyAmICommenting: Oooh good to know

              • ameyas7 on 03/05/2022 - 07:50
                +1

                @CryssieJade: I'd highly recommend to evaluate your refinancing options with a professional. While it is a great option in general, if you are not able to get a decent deal on the original loan, i feel odds are low that refinancing will be any easier. As you will need to take lmi into factor with refinancing etc. I feel it only adds extra factors into the equation. The last thing you want is to engage yourself into high interest loan in the current market where interest rates are most likely to increase even more.
                Again I'm not a financial advisor so I'd highly recommend to speak with one before you consider refinancing would ease any burden.
                Good luck in general.

            • victorheaven on 01/05/2022 - 11:56
              +1

              @WhyAmICommenting: Only problem is that OP's income might be affected during/after pregnancy.

              Servicing would be tighter with an extra dependent too. Unless OP's income is going to increase to offset this, she might find that there is no conventional lender with a normal mortgage rate wanting her business.

              • WhyAmICommenting on 01/05/2022 - 13:57

                @victorheaven: Yep, so many factors.

              • CryssieJade on 01/05/2022 - 15:32

                @victorheaven: I'm planning on my income increasing, whether it's through the extra bookings I have made, and will continue to make post-Covid lockdowns, or taking a leap full time elsewhere.

      • pompompom on 03/05/2022 - 21:19

        There is a popular saying, "beggars can't be choosers".

  • Hybroid on 29/04/2022 - 14:39
    +18

    My other option is to give up everything I've worked for for years as a Sole Trader, and just get a full time job doing anything, so that I can get the loan I want, and fast

    I would do that personally. I value stability a lot and would rather have a fixed job with comfortable income and be able to achieve the other things in life easier like you mentioned, buying a house, having kids, being more secure. It's a personal choice you'll have to make.

    • CryssieJade on 29/04/2022 - 14:49

      I'm starting to think stability would be decent too, however, I don't have a comfort zone, so I don't know what that is like 😂

      • Hybroid on 29/04/2022 - 14:52
        +4

        It depends on your perspective really. There's a lot of people I know that live to work. That's their whole focus. Sure, they're proud of their successes and achievements and they should be.

        But for vast majority, work is a gateway to earn an income to then live your own life as you see fit.

        There's a healthy line in the middle where you enjoy your work to a degree but also have an entire life separate and away from it. Most of us are still looking for that balance so don't worry.

      • Kangal on 01/05/2022 - 00:49
        +2

        Also, it sounds like you're a pretty frugal person (OzBargain) so your expenses are probably not a problem. However, your problem seems less about the risk and more about the income. It doesn't sound adequate to get a loan, for a Melbourne apartment I'm assuming.

        So I would encourage you to be your brother's keeper, and see what is best for your future. Based on a more logical, pragmatic, and objective look. Take your emotions out of the equation. You may find it is better to "give up everything" and look for alternatives, and perhaps push back your "family plans" by a few years.

        Afterall, a mountain can be scaled from 360 degrees but some paths are much quicker/efficient than others. So if you find yourself stuck halfway, it's not advised to risk pushing forward, rather it is usually better to go back down (either a little or a lot) and begin climbing from an alternative and better pathway.

        • CryssieJade on 01/05/2022 - 08:47

          My income is still enough for a 2 bedroom unit with a courtyard, even at that tiny loan (once my deposit is factored in). Having a family can't wait - I'm 38 and I want (and can afford!) more than one child. So this accelerates the need for a loan, so I can get my loan before children come along.

          But I'm thinking of a lot of different avenues to get that loan now (or to change my job temporarily), after posting here. The family and the home loan are the two non-negotiable factors, really. And the loan has to come first.

  • AustriaBargain on 29/04/2022 - 14:41

    Are you employed or are you a sole trader? You say employer, but do you mean your client, your contractor? If you're already a sole trader and own your own camera, lights, and computer why not find more clients.

    • CryssieJade on 29/04/2022 - 14:43
      +1

      Yes, I have tripled my clientele this year. That work kicks in after June 30 though, so it won't help me at the moment. This will be my first proper, non-Covid year of trading, which I'm excited for…. But lenders won't care yet!

      Edit: I work casual for an employer from January to June. From July to December I run my business. I'm getting to a point that, in the next 12 months, I could leave my employer behind. I've worked so hard for this!

      • Hoborg on 01/05/2022 - 13:50
        +2

        Keep working for yourself and go the non standard loan route.

        I went this route, then refinanced about 3 months in (financial year ticked over). Interestingly, Macquarie offered me 30% more than liberty did on a low doc loan during the Refi. Just don't take a fixed rate mortgage intially or you'll pay big.

        I couldn't think of anything more depressing than a full time job… I have two young kids and my wife does not have paid employment so she can raise them.
        But I will take contract/self employment any day of the week - and now that you've built up an awesome list of clients it would be a real shame to give it up.

        • CryssieJade on 01/05/2022 - 15:36
          +1

          Definitely going variable, and I'll be making extra repayments whenever I can. I'll be paying weekly.

          At this point, leaving my industry and getting a full time job anywhere would actually generate less income than my projected income (through my confirmed bookings between June and December).

          Even though I'll be earning more through my business, the full-time offers the stability that lenders are looking for, and nothing more. Walking away from this kind of income would be silly, but I will do what I need to, in the end.

  • Jason Genova on 29/04/2022 - 14:42

    are you panicking because interest rates are gona go up?

    • CryssieJade on 29/04/2022 - 14:44
      +1

      Not at all. I've just reached a crossroads and can't wait any longer. If I wait longer, the doors will begin to close completely on a lot of things. It's now or never.

      • chartparker on 02/05/2022 - 11:38
        +4

        As someone with 2 young kids in their late 30's my only regret is that I didn't have them earlier. This is going to sound corny, but as long as your child has a roof over it's head, food in the belly and unconditional love from you they'll be ok. Money/career/business can come later - you're never too old to build a business, and sometimes you'll be even more successful because you'll be even more disciplined about your time and with better clarity about what your priorities are in life.

        That said, please do not have a child unless you are going to put them first.

        • CryssieJade on 02/05/2022 - 19:02
          +1

          Thank you so much for your heartfelt response, of course I would always put my children first. Always.

  • yk300 on 29/04/2022 - 14:44
    +8

    From what you wrote, having children seems to be the most pressing thing. I guess the question is should you prioritise having children or keeping your business?
    I do not have kids nor a business but I would say you can recreate a business. Having kids might not be a possibility later down the track. The steady paycheck might be helpful to reduce financial uncertainty in the early years of having kids.

    Hope it works out for you

    • CryssieJade on 29/04/2022 - 14:48

      It's only pressing because getting a loan with dependents, as a single, is damn near impossible. It has to be loan first, and kids very quickly afterwards. I'm already with an IVF clinic, no procedures yet. But MUST be loan first.

      • Stopback on 29/04/2022 - 15:19
        +2

        IVF also may take a long time depending on circumstances. Common to do five plus rounds. Whatever you decide don't put yourself down for not achieving your goal

        • Matt P on 29/04/2022 - 20:50
          +1

          Given OPs comments above, the IVF part might just be to sidestep the intercourse part as she mentioned a sperm donor rather than because of difficulties falling pregnant naturally.

          • CryssieJade on 29/04/2022 - 20:59

            @Matt P: Correct. I don't have fertility issues, but I am single by choice 😊

            • tomlikesbeetroot on 30/04/2022 - 21:55
              +5

              @CryssieJade: Even with no issues its not a sure thing. Be prepared for multiple cycles.

              • CryssieJade on 30/04/2022 - 21:59

                @tomlikesbeetroot: I'm prepared. I'm a member of a lot of groups and I can see what people are going through.

                I could be wrong (or maybe it's the blind faith talking), but I feel that falling pregnant will be a lot quicker than this darn loan process 😂

      • arkie0 on 29/04/2022 - 20:55
        +7

        There is a reason getting a loan with dependents is impossible… kids are really really expensive. Have you budgeted for those expenses?

  • JimmyF on 29/04/2022 - 14:50
    +25

    Any advice? Thoughts? What would you do?

    To be honest, you're stuck between a rock and a hard place for sure. The clock is ticking as you said, your industry has been hard hit and banks are about to get tighter on lending.

    You have 3 dreams on the go, your own business, having kids, and owning your own home.

    Based on what you have said, you can have 2 of these 3. Pick which 2 are most important to you and go with them.

    • CryssieJade on 29/04/2022 - 14:52
      +7

      Damn - clarity.
      That felt nice.
      I think I know what to do.
      Thank you 😊

      • JimmyF on 29/04/2022 - 15:16
        +9

        I think I know what to do.

        That's great to hear!

        You never know what the future holds, and while today you might be only able to get 2 of your dreams, it doesn't mean in the future you can't add the 3rd one!

        Best of luck!

      • Kangal on 01/05/2022 - 00:53
        +5

        It would be nice to get a follow up comment in the future. As to what you decided on, how you progressed, and was that good or did it come with its own challenges etc etc.

        • CryssieJade on 01/05/2022 - 08:52
          +4

          For sure, I'll update here in the next 6 months or so. That's how long it will take to make serious headway into my plans. And I know that whatever decision I make will be be the right one 😊

  • JimB on 29/04/2022 - 14:58
    +1

    The good news is that property prices in Melbourne doesn't look like they are going anywhere.

    I'm not sure what deposit you have, but is a $200k loan sufficient to buy a place in Melbourne?

    • OzCheapo on 29/04/2022 - 15:06
      +1

      4 lots at the carpark

    • CryssieJade on 29/04/2022 - 15:19

      Very high deposit. I can still afford a 2 bed unit with a courtyard (what I wanted), even with the $130k loan I've been offered - but not in the area I wanted anymore.

      • JimB on 29/04/2022 - 15:21

        It may sound presumptuous but any chance you can get your parents to go guarantor to get the extra $70k?

        • CryssieJade on 29/04/2022 - 15:36

          Lol my Mum raised me alone. She has no money, except her house which is entirely paid off. No one cares about guarantors anymore, we've tried.

          • onetwothreefour on 29/04/2022 - 16:00

            @CryssieJade: How much are you looking to spend on a place and how much deposit do you have? You don't have to say if you don't want to but if you really have been able to save a huge deposit in a short amount of time are you able to keep saving until you can buy somewhere outright? I assume a $130k loan won't make much dent on a 2 bed unit.

            • CryssieJade on 29/04/2022 - 16:33

              @onetwothreefour: By the time I save another $130k, house prices will go up again and I can't wait that long.

              Prices have gone up $100k in just 12 months, in the area I was hoping for. And that's just for a 2 bed unit. It's a bit ridiculous.

          • JDMcarfan on 29/04/2022 - 16:35
            +4

            @CryssieJade: Because you've mentioned that mum's paid off the house, how good is the relationship with your mum? Both from a mum-daughter connection/trust perspective and a financial one.

            Not looking for an answer but if both of these are good, then something that hasn't been mentioned and is a good alternative is an equity release loan (different banks have different terms).

            The idea is to get an equity release loan for mum's place under her name (would require her to still be working and have a bank to approve the lending amount).
            Equity releases can best be described as a re-finance/re-mortgage against the paid off home (brokers can organise this and will happily use a plausible reason to the bank (they can know what's going on) like planning to renovate/rebuild to get it, and the amount an equity release can unlock should be roughly equal to the amount she could get if looking to borrow for an investment property.

            I specifically mention the equity release as the secured asset is her family home (and not another residential property) and likewise doesn't come with the explicit requirement that the funds are to be directed to the aforementioned reason (i.e. purchasing an I/P) and can thus be transferred to you. It would be best to go through a broker for this nonetheless and FYI Macquarie Bank has very competitive equity release loans (= to owner occupier rates). This is coming from myself (a banker, albeit not at Macquarie),

            I'm obviously assuming that both yourself and your mother are capable and willing to commit to this arrangement, but your part in this arrangement would obviously be taking the responsibility of making all the repayments. If you are an only child, I'd assume it would make this arrangement more easily convincible but even if you have siblings you can always make it as fair as possible and help mum adjust her will (or establish one) to equally distribute her assets and deduct the residual amount left on your loan from your share (Again I'm assuming that she'd want it distributed to her offspring).

            A safe LVR would be under/equal to 60% as that would get you the lowest interest rates and likewise reduce the mental stress on mum (if she has any concerns/you're out of work for sometime) and hopefully that'll free up enough funds to allow you to buy your place. (Let's just say mum's place is worth 500k, then up to 300k in equity release would be wise, based on her income being theoretically able to service that loan). As you're not taking the loan in your name, you could also get whatever maximum loan that you are able to get ($130k in your case) and ask mum to get the equity release for the residual amount you need (or otherwise borrow 60% but keep rest in her offset)

            This is the closest thing I can think of that can be helpful for you in getting your first place (and doesn't simply count as a handout from parents, but instead allows you to get some leverage from their more stable financial position). Happy to answer any questions if you have any, and sorry for the long response).
            One point to note: If she is receiving any centrelink payments then such an arrangement will be considered 'gifting' and may reduce her eligibility

            • CryssieJade on 29/04/2022 - 16:49
              +1

              @JDMcarfan: Wow, what a reply! Thank you, although I'm not sure if it will be too relavant to me. Mum and I have a great relationship, and I'm an only child. She is no longer working, however, and she is on a pension.

              She has an unrenovated war home in a Bayside suburb on a full block of land. She has mentioned many times just to take all of my deposit and build on her (empty) backyard. This would bypass the need for any loan.

              But she wants to move house too (carp neighbours), so it's not like I could do that right away either.

              Would sure make 'Nonna's daycare' easy to access!

              But some space from my Mum would also be nice. I don't think we could live on top of each other once I have kids, for both our sanity.

              If I was to take the tiny loan of $130k, I would be over 60% LVR. I never realised that in itself could be an issue (or is it only an issue if using someone else's equity? Maybe I have read that part wrong)

              • mmd on 29/04/2022 - 16:59

                @CryssieJade: Would sure make 'Nonna's daycare' easy to access!

                But some space from my Mum would also be nice. I don't think we could live on top of each other once I have kids, for both our sanity

                How would your income stream look like post kids?
                Will you be able to go straight to work?

                • CryssieJade on 29/04/2022 - 17:08

                  @mmd: I'd be able to go back after 6 months, for sure. Just to give myself quality time with my child and to give my body time to heal.

                  The nature of the business I have created means I would work from home every second week, and the other week I would be 'onsite' for half days.

              • JDMcarfan on 02/05/2022 - 12:41
                +1

                @CryssieJade: LVR is Loan to Value Ratio is the % of the market value of the property that is funded by a loan.
                If you were taking a 130k loan, then its highly unlikely you'd ever be over the 60% LVR as that would mean the place is valued at 217k.

                I was just mentioning the LVR to stay below 60% as the equity releases banks offer may allow up to 80% LVR( 800k release on a $1m house), but this would come at a higher interest rate (likely 0.3-0.5% higher than at 60%). All LVR's <60% come at the same interest rate so its best to hit the top end of that scale to not incur the extra interest.

                In this hypothetical, your mum would be getting the loan (against her house) and it would not be held against you or your property, and her LVR may be up to 60% (or higher if you wish). She then transfers that amount to you (lets just say its 300k) and you get a loan for 130k from a bank and purchase a place for lets say 520k (funding the remaining gap ($90k) by yourself). The funds your mum gives you in the eyes of your bank is like a deposit and the loan amount of 130k for a 520k house would result in a very low LVR of 25%.

                You mentioned that your mum is on the pension and thus this opportunity wouldn't be very relevant for you which is totally fair. However if you feel like you're running out of options, you could still hit up a broker that does equity releases and just see what they can offer to your mum as they should still be able to still get some funds in the form of an equity release using both her pension income and reasons like 'building a granny flat' (no harm in asking right?).
                If the amount that a broker comes back with is reasonable, then to avert the issue of a pension reduction, you can get a loan document between your mum and yourself drafted that states that you will be paying her back in full with interest (which you would need to do ofc), which would pass the non-gifting requirements stated by centrelink. Please contact Centrelink/Financial adviser directly to confirm the requirements that need to be met for this to be acceptable. This option ofc is a lot more effort/potential headache definitely not a a first option, but hopefully something to keep in the backpocket.

                • CryssieJade on 02/05/2022 - 19:07

                  @JDMcarfan: Thank you so much for that response again, definitely a lot to look into, as a backup, just in case.

                  Yes, I definitely got my numbers wrong there, whoops. I have heard of LVR before, because it's what every lender asks if me when they ask what my deposit and desired borrowing amount it. Definitely got my calculations wrong in this situation though!

              • chartparker on 02/05/2022 - 14:04
                +1

                @CryssieJade: A full block of land in Bayside! She's sitting on a tiny goldmine lol. Subdividing is a great option as long as you can set boundaries for each other so as not to create tension where there was none before.

    • Drakesy on 29/04/2022 - 17:37
      +3

      They can definitely go down
      Just wait till the rate rises start.

  • Youfah Mizzum on 29/04/2022 - 15:03
    +8

    OP I think you should find yourself a full time job & do the photography business as a side hustle at least until you can secure a loan.

    Or could you even do your current p/t role along with another p/t job?

    • CryssieJade on 29/04/2022 - 16:34

      Also a very good possibility, except the main form of Photography I do now involves business hours. I could switch to a different kind that involves weekends though, wouldn't really matter. Same reputation either way 😊

      • lhou021 on 01/05/2022 - 12:05
        +1

        photography during business hours is not a big issue.
        I would suggest a full-time job & photography as a side hustle business as well.
        A lot of employers these days allow flexible working arrangements, you can always negotiate with your employers and ask about flexible working hours/days, or even remote working arrangements etc.
        hopefully this will give you more stability and help you reach your 3 goals faster :)

  • nalgene on 29/04/2022 - 15:05
    +4

    If I were in the same situation, I would get a full-time job, own a house and then have kids.

    Other than being able to own a house, you will also potentially have Maternity Leave, some flexibility during the early days of the baby being born (depending on your company and boss) and a stable income. All these help when you have a baby to look after and the financial commitment that comes along the way.

    • CryssieJade on 29/04/2022 - 15:21
      +1

      This also an attractive proposition that I've been seriously looking into…

      However, owning my own business also means that every second week, I work from home. So I can be with my kids. Nonna's daycare will be the other week 😊

      • trapper on 03/05/2022 - 18:38
        +2

        Just fyi, you are not going to be able to work from home while looking after small children.

        For the first six months maybe, when they don't do much, but after than they need constant attention every waking moment.

        It's honestly just not realistic to get any actual work done.

  • Hithere on 29/04/2022 - 15:08
    +4

    Have you considered accepting the smaller loan offer of $130k and purchasing a cheaper property than you really want?

    Live there for a couple of years or so, save like mad, and then (hopefully) your property has appreciated enough in value for you to sell it and apply for another loan and then purchase your dream home.

    • Jason Genova on 29/04/2022 - 15:14
      +1

      so you think property always goes up?

      • Hithere on 29/04/2022 - 15:36
        +1

        @ Jason Genova I posted…

        (hopefully)

    • CryssieJade on 29/04/2022 - 15:21

      Yes, I am seriously considering this.

  • ChiTown on 29/04/2022 - 15:24
    +6

    Financial stability should come first for you and your new family over your passion for photography and I only say this because it seems you've worked hard for years on this business and unfortunately it still isn't earning that much given your borrowing capacity is capped at $130k.

    You don't have to give it up, you can still get the full time job and continue the business on the side. I am a sole trader myself, and I started my business part time whilst I worked full time, then as my business grew, I quit my job and now run the business full time. In saying that, there was substantial year on year growth that gave me the confidence that the business would continue to grow at an accelerated pace if I focussed on it full time, financially it stacked up for me to make the move.

      • ChiTown on 29/04/2022 - 16:01
        +19

        Sorry to upset you, you were asking for advice on a public fourm, not everything you hear is what you want to hear.

        I come from a finance background (worked in lending as well) and now having a young family of my own, financial stability is of utmost importance.

        What is 'massive' to you may not be to some others, it's about perspective…same as income not being 'low'…you haven't given the actual numbers on either your deposit or income (and I'm not asking you too), but from what we have to go off, the $130k in lending, even with taking into account contracting and JobKeeper, it's a very low borrowing capacity, that's how I concluded that the business isn't going so well.

          • trapper on 03/05/2022 - 14:34
            +2

            @CryssieJade:

            you don't know my numbers, or what my borrowing power would have been if Covid restrictions hadn't come into play

            To be honest it doesn't sound like you do either.

            If you want proper advice stop with the guessing games and just put your cards on the table, how can anyone help you like this.

      • KLoNe on 04/05/2022 - 05:10

        OP: "Hi! Here are a lists of all my wants 🤗🤗🤗 GIMME!"

        Your career of CHOICE is OBVIOUSLY not making you enough money for your WANTS. Not everyone gets to do their dream job. WORK MORE or find a way to MAKE MORE.

    • CryssieJade on 29/04/2022 - 16:59
      +1

      I'm sorry, but I don't know this language. Could you please clarify in layman's terms?

      • Drakesy on 29/04/2022 - 17:34
        +7

        Rekt is a serial spruiker of this.

        I personally would take it with a HUGGGGGGE grain of salt and not gamble your life savings on shares in a coming recession.

        • CryssieJade on 29/04/2022 - 17:43
          +2

          Oh is that what language that was!

          Oh feck no. I'll never do that.

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