hi everyone!
I’m a 22 year old male very keen to get a property. Now! heres my idea or what ever u might call it – by the way steve m. thanks for opening my mind and giving me a reason to even think about investing and properties. Well back to my scenario, right now i feel like i got allot of enerygy and determination running through my veins, so ive decided to make good use of it heres my plan finnaly – i would like to move out of my area which is hallam (and stop being a mommies boy! i have 3 very cool workaholic friends who are in the same boat + since we leave at home we cant have ladies over why not get our own place yay! u guys are welcomed anytime!!by the way shareing is caring) we want to move closer to the city i thought – why not try and find a property of 4 rooms and convince the guys to move in with me, and ill be charging my friends each rent. but whats a property near the city likely to cost for 4 guys, say if i find a 500k home how would be go about it in getting that property, is that property likely to go up, depends on the location right?? i’m a bit clueless at this stage i have to catch up on my reading at this stage i just had to let it out pheew!!
can i be blunt(thats cool steve) let me know what u guys think i wann know the specs i hope u guys understan my situation thanks bye [baaa]
Sorry Joh,
I think we are not sure exactly what your question is !
Care to elaborate?
Sue [biggrin]“Be careful not to step on the flowers when you’re reaching for the stars”
I think joh wants to buy a property and rent out the spare rooms to his mates (and have girls over!!).
Sounds like a great plan to me!
And I think the plan of buying a property is great too. It all depends on how strong your income etc is for getting the finance.
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
Hi Joh,
I understand what you want. Fisrt things first.
You have to make sure that your three friends will defenitely rent out the bedrooms from you.When you sign the contract, make it ‘subject to approval of tenants’ – You don’t want to sign the contract, then find out that your mates, will not rent it out and find yourself stuck by yourself making the loan repayments and with a $500k loan, it won’t be easy.
I would suggest not looking for an apartment in the city as a 4 B/R apartment will cost you over $1M. I would suggest looking at Prahran, St. Kilda, Richmond, Port Melbourne or even maybe South Melb (leave Sth. Melb as a last resort).
Second, you need to assess whether you’ll be ina good financial position by purchasing the property and renting it out.
Some basic figures:
Property = $500k
Deposit = $50k (10%)
Loan Repayments = $33,750 pa (7.5% IO on $450k)
Rental = $15,600 pa ($100 pp x 3 persons x 52 wks)
You’ll have to fork out an extra $18k+ to make the loan repayments which do not even include principle. Be mindful also that I have not included the costs above of Legal fees, agen fees, rates, Body Corporate, Title fees, bank fees, Stamp duty etc. Also, you can either put a 20% deposit down of $100k cash – ask yourself if you have this cash. If not you can put 10% which is $50k but you’ll need to add Mortgage Insurance of several thousand dollars.
Assess all your figures first befoere you rush or decide into anything.
Kind regards,
George.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
joh – dude – good plan however the place will be negatively geared though and probably by a fair bit as gearge points out. why not forget buying the place and the 4 of you rent a nice 500 k place in collingwood for 350 bucks – 4 bedrooms 90 bucks bucks each (take the bedroom with the ensuit). then with the remaining cashflow you have buy a place that you can better afford with a better return than 4 pct wch current rate in collingwood and surrounds. like a 250k 2 bedroom place near a train station in dandenong.
always remember you need cash to dine the ladies. btw sharing and caring is good for somethings but not others – if you know what i mean. you wanna remain friends remember.
happy hunting
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