WWYD? Housing question

We currently living in a house owned by my parents, even though we pay all the mortgage, rates, bills, and maintenance. The balance on the mortgage is currently about $365,000, and its worth anywhere between $430,000 and $500,000 depending on the market. My parents are planning on moving into a retirement village at the end of the year due to my dads ill health, and because $40,000 deposit for this house is sitting on their home we have four choices.

1) attempt to find a 100% mortgage for $380,000 for this house with stamp duty .... slim to none with our previous credit history and the global financial climate.
2) sell it for as much as possible, take the profits (we have a legal contract with my parents that we keep all profits except real estate/settlement fees). And sit in a cheap ass rental until house prices come down enough to buy with a minimal mortgage.
3) the company both SO and I work for has just bought out several small companies in Canberra and as such are looking to make the tiny call centres there into one huge contact and corporate centre. They're wanting staff from head office (here) to move over east for for 12 - 24 months to receive management training and take management roles ($20,000 a year more for each of us). With guaranteed corporate jobs when you get back. The rental market over their isn't brilliant but we would have free daycare (SO's family live there), and career opportunities. Pluse we would still have $50,000+ for when we came back.
4) if option number 1 doesn't work, mum has said she will just consolidate that $40,000 into the mortgage on the house (which will take our current repayments up about $250 a month which is doable). Then keep going as before until mum hits 66 (8 years) and has to get rid of it to get a pension.

What would you do in this situation?

#3.. It sounds fun and exciting.

Id go three but i do love canberra!!
More money is always a good thing and the oppotunity to save more if you will be saving money on daycare.

Quoting **mummyX2.5**:" Id go three but i do love canberra!! More money is always a good thing and the oppotunity to save more if you will be saving money on daycare."

I haven't ever been to Canberra. SO's family are planning on coming back to Perth at the end of next year, so we could come back with them. I just know that my mother will throw the biggest hissy fit in the history of the world.

If its only for a year or so tho just so u can get ahead maybe she might xome around to the idea... i get how it feels tho wanting to do something without upsetting anyone.

I really want dh to take me there in april for my bday my kids and dh havnt been before i think its fun!

I would sell the house and go to Canberra.
Oh and don't tell your mum your doing it until after its all been signed and organised that way she can't use emotional blackmail to get you to stay.

To save all that money and get I experience life without being under your parents thumb. Sounds like an awesome plan.

Transfer the mortgage into your name and get an interest only one.
The medium for a house/ unit is around 500,000.
Waiting for the market to collapse is not something I would do.
I believe you said you had a default on your rating, I think this is still doable and would save stamp duty on a new property down the track which is just a waste of money.
An interest only loan on that amount would be less than rent.

Or sell the house and use the money for a deposit on a new one with an interest only mortgage.

You could move to canberra but wouldn't you miss your family and friends?

Quoting THE KATIE PRICE:" Transfer the mortgage into your name and get an interest only one. The medium for a house/ unit is around ... [snip!] ... deposit on a new one with an interest only mortgage. You could move to canberra but wouldn't you miss your family and friends?"

we were told that we can't just transfer the mortgage, we actually have to 'buy' the house off my parents.

<blockquote><b>Quoting Destiel:</b>" we were told that we can't just transfer the mortgage, we actually have to 'buy' the house off my parents."</blockquote>




Ok.
I think it's still a good position. I'd still do that unless I hated the house.

Quoting THE KATIE PRICE:" <blockquote><b>Quoting Destiel:</b>" we were told that we can't just transfer the ... [snip!] ... off my parents."</blockquote> Ok. I think it's still a good position. I'd still do that unless I hated the house."

I honestly don't think I'm gonn get a mortgage for $370,000 with no deposit. Everywhere wants 5%, and my mum doesn't seem to understand that they won't take the equity in the house as the deposit.

<blockquote><b>Quoting Destiel:</b>" I honestly don't think I'm gonn get a mortgage for $370,000 with no deposit. Everywhere wants 5%, and my mum doesn't seem to understand that they won't take the equity in the house as the deposit."</blockquote>




I believe that when you buy between family it has to be at market value. But if your parents are telling you you can keep the difference between what the mortgage is and what it's now worth it's tricky as I suppose that amount would be your deposit?
5% is like 20k? Could you begin saving for that now?
You would need a deposit. I'm not sure, we had a deposit before applying for the loan.

Option 3
To buy a house for $370,000 you will need a $37,000 deposit

Quoting THE KATIE PRICE:" <blockquote><b>Quoting Destiel:</b>" I honestly don't think I'm gonn get a mortgage ... [snip!] ... Could you begin saving for that now? You would need a deposit. I'm not sure, we had a deposit before applying for the loan."

saving that amount of money in 10 months is impossible. We already pay the mortgage, rates, bills, maintainence etc ... we would literally have to save half our wages a month. Which would mean we would only have enough money left a month for the mortgage. We wouldn't be able to afford any bills or food.

I wasn't sure of the time frame.
That's a hard one, you basically need 40k to continue, and they need it too!
I'd sell then, repay the 40k to them and then use the money you make to buy another place or rent and put the profit into a high years until you have enough to feel comfortable putting it down as the deposit in a loan. It's a pain about stamp duty!
All in all, what a great gift from your parents!
You could even move and rent in canberra to see how it goes? I love canberra but couldn't live there I don't think!

<blockquote><b>Quoting Destiel:</b>" I honestly don't think I'm gonn get a mortgage for $370,000 with no deposit. Everywhere wants 5%, and my mum doesn't seem to understand that they won't take the equity in the house as the deposit."</blockquote>




They won't take the equity! And if they did I wouldn't trust that loan!
But, you would have the profits from the sale, best case scenario, deducting the 40k isn't that like 90k? That's a great deposit most people would be happy with!
It's all good hun