I am 22 and graduating in November 2004.
My friend and I will start working fulltime and be earning over 80k a year accumulatively. We are looking to buy our first home.
Do you have any reccomendations regarding:-how much we can potentially borrow
-how much we should look to spend
-first home buyer’s grant
-split mortgages
-how much deposit we need.At the moment we are looking at the 250k-300k price bracket for a 2-3 bedroom house/unit in an area which is undergoing major development. The area has experienced signficant population increases.
Seems that it is a really good idea to start young. We calculate the repayments over 30yrs to be about $240/week each for 150, 000. So at age 52 we will own half a house in the worst case scenario. We would love to buy more property later on but at the moment we are focusing on our first house.
We also don’t intend on staying the country for longer than two years (we both have dual citizenship – Australia/British). We have heard that there are major tax advantages in having a home as your primary residency, that when you travel overseas you can rent it out and that income is not taxed as long as you are away for less than a set period(maybe 3 yrs). Any advice on this?
Any advice regarding our situation would be really appreciated. I think this forum is really great. My friend and I have been talking about money and investing for our future a lot lately but find it is generally a taboo subject amongst friends.
Cheers,
Sarah
Well done Sarah,
Might I suggest you do some searching and reading of the previous posts. That may answer many of your queries.
There are some advantages to establishing a property as a home…CGT is the one you avoid if you rent for less than 6 years- you will still pay income tax on any profit you might make.
There is some FHOG info on my website which I would rather not type out again.
Lastly for borrowing ability it depends on two things, deposit and income. If you can advise me of those I can quickly work it out.
Any broker or Bank officer will do it for you – remember that all banks are different so I would recommend a broker who covers many lenders rather than a bank who only covers their own products.
Starting young is probably the absolute best thing you can do. Any experienced investor on this or other sites will tell you they wished they had started earlier!
All the best to you!
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Wow well done, if I at 22 knew how to do this property stuff, I would, as most of us would have been much better off by now.
What state are you in as that determines the tax law applicable to you. Definitely agree with Simon goto a broker not a bank as they often try and steer you away from property into managed funds etc for your money.Good to see you are proactive and on this, one of the best websites around. Read extensively, analize well, but make decisions and move forward. A lot of first time buyers suffer from analysis paralysis of what do we do when we have it is all ready to go. Most learn as they go and no house is perfect, so go for it and have fun.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
