Your Thoughts Please?

I’ve been overseas working for the past year and will be coming back home to Sydney at Xmas.

I’ve been keeping an eye on units in a particular beachside suburb in Sydney.

I will be coming back home with at least $45K for a deposit, and if I save that extra little bit, might be able to push this up over $50K.

I will be able to get the conveyance done for free (not including the disbursements), so that is one closing cost that is under control.

I am looking at 2 bedroom flats which are advertised in the range $400-$430K, and tentatively budgeting on:

$40K for deposit
$10K for closing costs (stamp duty, disbursements etc)
And then borrowing $350-360K and try to haggle down to just below or around $400K.

I intend to negative gear the property and hang on to it, then in future, borrow against the equity, buy a second place, then live in the other one. I like my job, and I’m not motivated by not having to work again – rather I want to accumulate assets in the medium term.

Clearly this is a long term strategy. I am 28 years old and my Australian salary will climb to six figures in the next 6 months.

My questions are:

1. Do you think my “tentative” mental budget above sounds feasible. In particular have I allowed the right amount for closing costs?
2. Does this sound like a sound investment strategy for somebody in my circumstances (I am single and without other financial commitments)
3. Is this the best time to buy for someone like me?
4. Any other thoughts?

It seems to me it’s the perfect time for me to buy when I return as I’ve noticed say a 10% decrease in advertised prices since about March (the time I started creating a min database of desirable properties).

I’m not looking for any concrete advice, but would just appreciate some general thoughts as this will be my very first investment and I’m very cautious.

Thanks in advance.

Da Man