I am writting to seek advise from anyone who can give it. I am 24 years old i have been renting in the inner city of Sydney since I was 17 (last 7 years) so it has been hard for me to save any sort of money. A month ago i was fortunate enough to move in with my partners parants cutting my living expenses in more then half. I am currently living to a budget and getting may savings underway.
I came across this site last night. I have had the bug to buy for a while now but this is the only time it has seemd realistic, although prices in sydney even out side of sydney are through the roof and I am currently on just under $40K. So I have been looking at positivly gearing interestate with a property up to $100K. As it is interstate I have no hope of the FHOG and unfortunatly no family support. I have a few questions for people who can help?
1) How much of the 10% do the banks and lenders want to see to have been genuine savings?
2) I have been looking on the net at propertys in WA. Does anybody know the WA market? If so could you suggest any sububrs with propertys under the $100K that are starting to pick up?
3) My thinking is. I am 24 if I buy a cheaper property now that gives me positive cash flow, I am getting my foot in the door. Prices are bound to go up a little and with the tenant paying towards the mortgage as well as me adding saving to it I will be building equity faster then I will be saving for a larger deposit for my next property. Is this realistic thinking? And is WA the way to go? Because even $10K is going to take me over 6 months to save and I am wanting to get in ASAP.
4)Should I just take my time and wait a little as people are saying the market is starting to slow and I might get somthing cheaper in a year? I deal with home loans everyday and see WA just going up and up?
I am just after advise from people who have actually done it as to where to get my start?Thanks to those who have read this
Cheers
AmandaHi Amanda.
First thing I would do is speak to a mortgage broker.Once you know what you can borrow then you will have a better idea on how to proceed from there.Are you looking at investing with your partner as this will make a big difference re loan amount.
Good luck.
Russ.So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
Banks generally want to see 5% genuine savings for your first property. genuine savings means money buliding up in a bank acocunt for about 6 months.
Buying a cheaper investment property is probably the best way to get a foot in the door. If you keep saving for a Sydney property deposit, it could grow faster than you could save.
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
good questions Amanda. I’m in a similar situation as you and have been thinking/researching the same type of things.
A couple of things, in my opinion, the sooner you invest the better. I don’t recommend waiting any longer than necessary trying to predict what the market will do.
Also as far as WA, it is an option but not the only option. I’m looking for the best place for me to make my 1st investment too, but I realise that a good investment is a good investment no matter what state it is in, so keep looking.
best of luck!
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