Greetings all,
I’ve spent some time researching properties now, but have missed the boom simply because I didn’t have the capital in time.
Here’s my situation. I am currently living at home, but am looking at buying a unit for investment purposes in Brisbane within the 6km radius outside the CBD. This unit will be around the $180k mark, but am unsure about whether I should go for 1 or 2 bedrooms.
I have saved $15k, and will probably need a loan of $170k. My current income is $38k, looking to advance to $43k in 6 months time.
Would I be successful in getting a loan, and living there for a period so that I can get the first home buyers grant, then move out and negative gear?
Should I try and go for this, or just sit tight, until who knows when?
Hi skidaveski,
There are a few mortgage brokers in this forum who will undoubtedly give you some great advice.
I can tell you that as you are borrowing 90% of the purchase price you will probably need mortgage insurance. I believe you can live in the property for a period and claim the FHOG but I am not sure on the time limit for this.
As for whether you should jump in and do it, or not, is entirely up to you.
Don’t forget to take into consideration how much this investment will cost you out of your own pocket. If you are happy that the figures add up and you have considered all the pro’s and cons. Then go for it.
Cheers,
Sue [
]“Be careful not to step on the flowers when you’re reaching for the stars”
hi
The longer you wait the harder it is going to be to get into the market. I was in your situation in Sep last year and I got in just in time for the area I bought. I also had 15k deposit but by using the FOG you can borrow more or see if you can get away with out paying LMI. Anyway just my thoughts…good luck and congrats on taking the first steps [
]Not sure about Q but in NSW you have to stay in the place for 6 months to keep the FHOG. Also, in NSW you get stamp duty exemptions under the First Home Plus scheme for places under $200,000 and stamp duty reductions for places $200,000 to $300,000. This will help if you have to pay LMI (Lender’s Mortgage Insurance).
I’d check what the deal is for Q by going to the Queensland Office of State Revenue website (just look for it on Google).
Hi Guys,
” Not sure about Q but in NSW you have to stay in the place for 6 months to keep the FHOG”
Actually in NSW, you only need to live in the place for a minimum of 3 Months. That is what the OSR use as there minimum criteria when doing their checks. I got that in writing from them when i was checking for my property…Hi Skydave
From the information you have given, you should be able to qualify for a loan. You would probably need to borrow 95% of the value of the property to leave some of your money for costs.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I see a few problems here. One I think you’ll be hard up to find a decent unit so close to Brisbane City for $180000, its more likely to be the low to mid 2’s. This may be ok for cash flow short term, if and only if you have a 20 – 30% deposit but units notoriously arn’t much chop for capital gain and they have to many added costs ie body corporate, sink funds extra, there is also a glut of them (why pick yours)? Better to buy a house a 20-30 kilometer radius of Bris. As an investment this may seem a long way out, but how many Sydneyits would love to live 20 kl from the city with a $250,000 home. Think long term! Also buy post 1985 for added depreciation. This is my opinon only.[^]
]
]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
