Hi there,
I would appreciate any advice on the following situation.
My partner and i are currently renting an apartment in the docklands, and both work in the CBD. Our combined gross income is approx 100k. We love living here, and being so close to work, and have been considering buying.We currently have no deposit, or almost none, but pretty good cash flow, putting away a lazy 2k/mth on top of the rent
However, i am uneasy about spending so much money on an apartment, and have considered buying an investment house and renting that out, while we continue to rent where we are.
possible deciding factors –
can we get finance for a docklands/cbd apartment with very little deposit? or will we need to wait & save?
2nd factor – buying a house in the burbs means no FHOG – unless we live in it for 6 mths, which we dont want to do ! ( i love the city!)
i know we could get 100% finance for this option, with some sort of house & land package.3rd factor – which will be the greater investment choice? a house of around high 200’s~300k , or the docklands apartment priced at high 300’s? We plan on living in the CBD for at least the next 5 yrs. Whilst i dont believe the apartment would drop in value, i do want to get the maximum capital growth for the money.
Basically – if you were in this position, what would you do? Im not asking for someone to make a decision for me, just for people with more experience in these dilemmas to shed some light on factors i may not have considered.
If i havent given enough info just ask!
cheers,
Matt
For a start I do not know your market well.
But it is a generally accepted rule that a 3-4 bedroom middle class home in the inner ring of suburbs usually performs well.
Why don’t you contact Michael Yardney’s team? They are experts in selecting Melbourne IPs for clients and can probably even help sort out finance.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Matt,
In response to one of your questions, as you have a good income, yes it is possible to buy an apartment in Docklands with little or no deposit. In fact you may be able to borrow up to 106% of the loan amount, which should cover all purchase costs and may even put some money back in your pocket.
As to what I would do, I think that the suburbs in Melbourne that tend to be performing well at the moment are the high end suburbs where you would not find a good house for $200-300k but there may be some potential in some of the cheaper suburbs closer to the city, such as West Footscray and Seddon. I do think that you should think long and hard before buying an investment property at 100% leverage though.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
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