Need to pick some brains here so I welcome all inputs …
Here’s the scenario: I’ll be studying in Brisbane soon and like most students, need to find a place to stay temporarily (1~3 years). However, I was thinking … instead of paying rent and having equity build-up, why not instead purchase some place (apartment/house) and build equity? When I leave the place, I can also build +CF thru’ rental.
Here’s the math if I rent:
Rent/w: $160~$200
Rent total in 2 yrs: $16640~$20800If the rent total goes toward the downpayment, will it make any good if I purchase instead?
What’s your take on this?
*P.S If I purchase, the place has to be real close to the CBD.
Perhaps you can purchase 2-3 bedrooms and rent the spare ones to other students to help with your mortgage?
Simon Macks
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Hmm, that’s an idea but wouldn’t I have to pay more for a 2/3 bedroom?
Another question I need to ask is when is a ‘0’ downpayment desirable and when is a 20% downpayment desirable.
This is what I’m confused about.
Fire
Not to be one to put a dampner on your idea of purchasing near the CBD and renting it out.
Just not sure if you realise what you will have to pay. You certainly won’t get much in the way of mortgage payments for $200 / week. Even if you were travelling in from the South side you still wouldn’t get much.
Somewhere like Oxley in the West you are still going to pay $240K for something that needs work.
Cheers Richard
richard at fhog.com.au
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What about those apartments/houses I see at http://www.realestate.com.au/cgi-bin/rsearch?a=bhp&t=res then? They seem to indicate a purchase price of $90,000 ~ $150,000
They certainly won’t be units or single dwellings anywhere near the Brisbane CBD
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Do you have a deposit now ready to go?
You will need to live somewhere and save it if you don’t. You’ll need at least 12% of the purchase price in cash to buy one of those small studio apartments you are referring to.
What about some of these:
1) http://www.realestate.com.au/cgi-bin/rsearch?a=o&ag=&s=qld&c=26483272&tm=1098413115&id=101917890&f=0&p=10&t=res&ty=&snf=rms-bri&cu=&fmt=&header=
2) http://www.realestate.com.au/cgi-bin/rsearch?a=o&ag=&s=qld&c=45837337&tm=1098413248&id=101962806&f=0&p=10&t=res&ty=&snf=rms-bri&cu=&fmt=&header=Suppose if I had a deposit of $30k .. Would that suffice?
Hi FireCaeser,
I have just bought my first IP in the Brisbane CBD and i can tell you it is completely posible to buy an apartment for less than 140K. I purchased one for $130K with a 20% deposit which is currently renting at $230 a week. From day one it is CF+ and when the tenant moves out in January i will be giving it a facelift (flooring, paint, lighting) which should see it fetch closer to $250 a week, plus gain me some equity for my next purchase. You are on the right track looking on http://www.realestate.com.au, which is where i found mine. I hope that helps.
eezy, why do you say yours is CF+? how much are your amortized weekly repayments for the loan?
Just thought I would add my two cents.
A lot of those cheaper apartments are for investors only….ie you can buy it but can’t live in it. If you are needing to live in the place then these are no good for you.Originally posted by FireCaesar:Hmm, that’s an idea but wouldn’t I have to pay more for a 2/3 bedroom?
Another question I need to ask is when is a ‘0’ downpayment desirable and when is a 20% downpayment desirable.
This is what I’m confused about.
A simple answer to this is ‘0’ downpayment is desirable when you don’t have a 20% downpayment!!!
Personally, I always try and get away with putting as little as possible into an investment.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auComments made are of a general nature and should not be construed as individual advice.
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