Hi all..
I’m living in Sydney now and looking to get in to my first IP.
I can get about $150k – $200k loan comfortably
( plus my own $20 – 40k deposit).What is the recommendation for the following:
a) Using more of own money for deposit, avoid mortgage insurance, lower monthly repayments
(possibly see positive rental cashflow)b) Use less deposit, more banks money, larger loan and monthly repayments.
Why am i always being told to use more of the banks money when it seems more risky?
Looking to buy middle or of the year, in Brisbane as close as CBD as possible…
Secondly,
Am I better off buying:
a) House in outskirts of Brisbane
b) or nicer newer Townhouse within 10-15kms of CBD?What areas would you recommend in Brisbane with good low vacncy, high occupancy rate, close to shops and trasnport…where I can get decent rentals to cover a large part of my loan… while still being affordable (in my price range) for me?
Also is it better to go looking myself or use a Buyers Agent? Are all buyers agents/ property cosultants scammers trying to make the most out of you?
Any input appreciated
Thanks!Originally posted by li21:What is the recommendation for the following:
a) Using more of own money for deposit, avoid mortgage insurance, lower monthly repayments
(possibly see positive rental cashflow)More sensible, less risk.
b) Use less deposit, more banks money, larger loan and monthly repayments.Less sensible, more risk.
Why am i always being told to use more of the banks money when it seems more risky?a) Because higher gearing brings more profit in a booming market, but even more loss once the boom is over.
b) Because you’re getting bad advice.Cheers, F.[cowboy2]
It’s probably an idea someone from Brisbane gave you some insight. Excellent idea investing here. I was at an information night last night and we ran through some excellent figures.
Anyhow, what do you expect to get out of the money that you can borrow? If you are looking CBD, your only chance will be a small one bedder or studio, 10-15km from city, the situation will not change much, except you may have two bedrooms and little floor space.
I would reccomend having a look at the net first in you price range, thats probably easiest.
I figure that you are going for capital growth as well as cash flow? Just be cautious of anything in/near the CBD with a small floor plan, this will not get you much growth.
Hope this helps.
J.
Definitely less risky to use as much of your own money as possible!
I’d suggest you take a trip or 2 to Brisbane, perhaps on a long weekend or something. Get yourself a Bris street directory, work out where some of the suburbs are along the train lines etc., and drive around them and speak to some agents.
Dunno about buyer’s agents, except that you’re paying someone else a fee that you could keep if you did the legwork yourself.
It’s really worth seeing the suburbs for yourself though, before you start to focus on a specific area. You can quickly get a “feel” for a place – the vibe…
Cheers, Mick
Dear li21,
hi i’m an REA on the South Side of Brisbane (we’ve got three offices in the inner south region). For the kind of money you’re looking at spending you will be lucky to find a 2 bedder unit within 7 k’s of Brisbane GPO on our side of town- that’s not of course to say they don’t exist!
I agree with J Parsons, you are best to come up for a week (if you can spare the time) and get a hands on feel for the area. Also keep searching on realestate.com.au within you parameters for new properties that come to market.
You can contact agents through the services provided on realestate.com.au, this may be your first port of call in establishing trust with a few REA’s who can keep an eye out for you.
There’s nothing like local knowlege, have you got any friends or family in the area you can ask to hunt around for you??
good luck with your search!
e x
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