All Topics / General Property / Should i buy a house or two units????

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  • Profile photo of sbhjainsbhjain
    Participant
    @sbhjain
    Join Date: 2005
    Post Count: 15
    April 21, 2005 - 1:40 am

    Hi everyone
    I am another virgin buyer looking for some advice on buying my first house and/or an investment property.

    Here’s my situation:
    I am in Perth, 25, single, no debt whatsoever, working fulltime with prospects to get promoted in december 2005. I am looking to buy a house/unit to live in (sick of renting and paying other ppl’s mortgage). My preference would be to have a mix of CG and CF. I am only just starting so im not sure what to aim for. I think i can take a fair bit of risk but do not want get involved in property mattters too much as i want to focus on my career right now. I have read a few books to understand the basics but cant decide will be best for me.

    I can get a loan upto $240K and i will have minimal deposit i.e. 5% saved in next 2 months (already been saving for 4 months… and getting depressed trying to save each and every penny its no fun… :( .

    My question is:
    Would i be better off buying a house or getting two units for that much?
    My Plan is:
    Buy one unit first to live in and then in couple of months buy another unit which i can rent out. is this the right way to go or should i be buying a house…

    Are there any posts in this forum that might point me in the right direction?? please post the link. Any advice would be highly appreciated.

    Thanks in advance for takin the time out to read/reply to my post.

    Cheers
    Sab

    Profile photo of RentMasterRentMaster
    Member
    @rentmaster
    Join Date: 2003
    Post Count: 85
    April 21, 2005 - 8:40 pm

    Hi sbhjain

    That is not an easy question to answer. There are a lot of variables.

    You have to consider where you want to live, and what standard of living you want to live in. A quote I quite like is to ‘buy a house for yourself which is the cheapest your ego can allow’. A cheap house for you means more money to invest elsewhere.

    Property investing is very much a numbers game, but it is not quite the same when purchasing a house to live in. You have to live with that decision.

    That does not directly answer the question, but I hope it helps.

    Andrew
    http://www.rentmaster.co.nz
    Software for Landlords

    Profile photo of sbhjainsbhjain
    Participant
    @sbhjain
    Join Date: 2005
    Post Count: 15
    April 22, 2005 - 2:19 am

    Thanks for your reply Andrew

    I dont mind sacrificing my standard of living right now and more than happy to live in a cheap unit. I can get a 2 X 1 unit for $130-$135K with above average condition. This allows me to buy another unit fairly soon. Is this a good strategy???

    I’m sure in 5-8 years time i can move into something i like.
    I would love to hear from someone who started with unit/s and made their fortune…

    Sab

Viewing 3 posts - 1 through 3 (of 3 total)

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