Advice on buying a new or old apartment

Hi Panina,
And a big welcome to you….. You have come to a good place. ;)

My loan has only came out at $260000 so if i want the new apartment ill have to fork out $100000 which is all my savings.

Wow – that is a big OUCH !! Smart move for looking around before putting so much of your own cash into the deal.

May I ask – have you been talking to a Mortgage Broker, or are you dealing direct with a lender? See, as with anything we are “new to”, we often struggle to think of questions to ask. So dealing with someone who has YOUR interests at heart, and the knowledge of a subject you are unfamiliar with, can be a huge win.

To that end, let me suggest you at least have a chat with a Mortgage Broker (maybe one from on here?) just to be sure your lender has given you all of the options you might have available to you. See, lenders are often just “wanting to sign you up, while giving themselves the best security for their money that they can” – enter xcoll loans, huge deposits, restricted allowances for your Income, etc.

Better for you to be more aware of all of the different options available to you – via a Mortgage Broker. The results might point your thinking in a whole new direction !!

Re which is better, old or new, there are several points around that – for some (high wage, passive investor, low Tax deductions) a new property might be beneficial. For a low income investor, buying new may not be such a good idea. But don’t let me put you off – ask the questions, and let’s see what other answers spring up. Look out for a mortgage Broker who might reply to your post. There are several good ones on here….. (check their signature)
Benny

Assuming the valuation of the property comes back at $360,000 – a 20% deposit + government charges equates to ~$84,000 – a tad short of the 100k you’re being told. So either there’s a valuation shortfall or something else at play.

Apartments in the Gold Coast have been the butt of jokes for sometime now – for many years many investors dreams were crushed with slick salesmen selling them stock which was either A, overpriced or B, in an area where theres just increasing supply keeping prices low. A key example in your scenario is that there is older stock selling for less – what happens when your property is old and a new apartment block comes up? Do you think property prices will drive up if there’s newer/better stock continually coming on?

Buyer beware as always.

If the furniture package is included in the purchase price the valuer will have factored this into his valuation and you will need to pay for this from your own savings or equity elsewhere.

Why not look at buying an established unit and borrowing 90% and then talking to a local property manager and see what furniture if any you would need to put in to increase the rental income.

Cheers

Yours in Finance

Happy to have a chat with you Panina. Getting into your own home whilst affordable will at least give you the breathing room to rapidly pay down your personal debt, freeing up that equity to get buy investment properties.

I think Corey is your best bet for deals like this.

Panina wrote:

Hi im about to purchase a new apartment for $360000 in the gold coast but i have been looking around the same area and have found a not new apartment for $300000 its nearly 10 years older but ill be getting the exact same rent.

Hiya

Like anything in life – the shiny new item tends to attract a higher price. However – over time, that shiny new item begins to age.

Cheers

Jamie

@panina from the figures you emailed me i managed to get the deal to service for $260,000 so not sure who your TIC broker is looking at but seems to be a vast difference.

Cheers

Yours in Finance