I am 29 and looking to purchase my first PPOR in Melbourne. I have saved $10K and will receive the $10K FHOG also. Looking to spend no more than @220K as I want to smart small and not over commit myself.
I am looking for areas that will provide good capital growth and am looking at suburbs such as Maribynong, Maidstone, Brunswick, Ascot Vale, Flemington etc suburbs no more than 10km from the CBD. Trouble is the 2 bdr units I have looked at are so small and horrible and I just dont think I could live in these places.
I also spent yesterday driving around Footscray and decided that although this may be a hotspot in time to come that I would not feel safe living in a 2 bdr unit in most of the streets.
Would appreciate anyone’es thoughts on the unit market in Melb at the moment as some people are telling me to WAIT and others are saying DON”T WAIT as prices will go north.
Hi Sarah,
Well done saving $10,000, hopefully you have it in building more and more interest in an ING Direct or Bank West online saver account while you are working out what to do – if not they are easy to set up and it’s amazing how the interest keeps ticking over each month at 5-6%.
Do you have any family support or a manager who trusts you with your money? If so I would suggest looking into the Family equity loan with either CBA or St George Bank. We used the CBA family equity loan when we purchased our unit and were able to borrow up the unit value with out having to pay mortgage insurance (big saving & also the flexibility to borrow more money). They both work where the person overseeing you has a limited guarantee and there are various options as to how they can support you with obtaining the loan. The other fantastic thing is the guarantor doesn’t need to give any money just a guarantee over there property which can be limited.
We had an official document written up for our guarantor and have set our goal of getting him off our loan by the end of next year.
I’m from Sydney so don’t know Melbourne to well so can’t give you any suburb tips. I‘ve got a few friends buying now in Melbourne and they are saying they are finding good bargins so getting into the property game when you can.
Good luck.
Beachesboy
[suave]Well done Sarah – saving the first $10,000
You are right – your can’t get much of a 2BR unit in the price range you are considering. I know – our buyers agents are out in the market place all day looking and we are buying 8 or 10 properties a month for clients.
Don’t wait – Melbourne is over the worst and there has definately been a rise in aprtment prices over the last 6 months – at least in the suburbs we have been looking at.
And with the likelihood of the proposed interest rise now diminishing, there is little chance of the Melbourne market faultering before Xmas.
So either use some of the suggestions made by beachesboy or go for a good size one bedroom apartment.
You don’t have to buy your dream palace first up . Just get a foot in the market and take advantage of the next wave of the property cycle
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auHI Sarah
You can do up a 1 beddy for $5000 – 7000 very nicely.
If your handy or have a handy friend.I love IKEA,
I buy/reno & sell 1 bed inner city apartments, I think my last one is still on realestate.com.au address unit 4, 23 Tenth ave Mayland WA
have a look this reno $7000.00 TOTAL kitchen and bathroom renoIf its gone send me your email and I send you a couple of B4 and after photos
Celeste
Hi Blogs
that’s a beauty. can not find that quality and size in Perth for that price.
I am originally from Melbourne and thats not a bad suburb either.
Celeste
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