Hi all, long time no post. I am putting up this post to see what you might think about a little idea of mine. You see I really would love a place to buy for myself (as I have been renting for quite a number of years) but the Sydney market is very expensive. I have located a 1 bedroom unit in a suburb that I am currently renting in, which is not in a metro area ( i.e. not sydney). My dilemma is that the unit itself is only 39m2 & as I have found out, not many of the major lenders will lend on property under 50m2 (especially in the metro high rise areas), but I have found that 1 certain major lender is more than happy to lend me the money because it is not in a metro area. The price is $159,000 & has been on the market for say a couple of months atleast – according to the agent a couple of people have been willing to pay full price but could not find anyone to get finance through (because of the small size). I am curious as to what you might think of this situation. Firstly, it would get me a start in the property game, secondly, I am going to live in it for atleast 18 mths until I go overseas for a year to travel , so I can utilise the govt. stamp duty concessions & FHOG, it would be only a little extra in mortgage repayments on an IO loan than my current rent, I could rent it out whilst going overseas to help cover costs while I am away, but am unsure of its possible re-sale “liquidity” come time to sell maybe years down the track? – mainly because of its size? If it does sound like a go ahead, I am unsure of a realistic offer to put in – as it has been for sale for a while & because it seems hard for people to find finace ( although I found it on my 2nd phone call with a very reputable lender ) What do you think? Any advice on this topic would be hugely appreciated as I am unsure whether or not to go ahead. Thanx heaps for your time [
]Nathan.
Hi Nathan
If you are serious about making an offer – get your finance pre approved, and you can make an offer with a quick settlement. Depending on the vendor’s needs, this may entice them to accept a lower offer.
If you live in it for 18 months as a PPOR, will the bank give you finance on an IO basis?
If you then go overseas and the rent = payments, why sell? In 18 months it could well be a bad time to sell, but if it can pay its own way try to keep it for a few years – until the market next turns up.
My .02 worth.
Cheers
MelThanx Mel, I forgot to add that I was planning on renting it out whilst going overseas. I agree that it would be a bad time to sell in 18 mths as the property market will be a bit idle??? Thanx again for your insight, greatly appreciated….[8D]
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