Hi Kind People,
I would like to hear some advice you have for a novice property buyer.
I am living in Melbourne, and I am thinking if I should buy a home or an investment property.
I know I am to take out a bigger loan for an investment property compared to a home loan. But I would need to rent if I choose an investment property. What is your view on this?
I figured either way, I will earn on any capital growth, but at least with the home loan, I am able to instead of paying for rent, able to pay towards my home loan.Then here comes the problem of choosing a right property. I have been looking at:
Melbourne CBD (becoz it is currently cheap, close to work. But has performed badly over the past few years and people I have spoken to dont really fancy living in the city. Why is that? Isnt being in the city supposedly the best as it has everything?)
Docklands (Becoz very close to city, seems to have great growth potential. But oversupply problem? Also its more expensive than city)
Point Cook (Becoz its seems to have good growth potential? Cheaper (round 300-350k for a house/townhouse.), close to Santuary Lake. But not too sure of its growth potential, used to be a wasteland, and I wont live here as its too far from work (traffic congestion on Fway).)
What kind of views do you have on the above areas?
Is it even a good time to buy now, considering the market is softening and might not have bottomed out?
I am actually interested in learning more about good areas to invest in, wonder where I would be able to obtain such research materials?
Thanks for all your help, this site has really informed me so much!
Hi
It depends on a number of factors. Are you single, married have kids ect. The reality is that if you work in the city it is cheap to rent. In terms of where you buy you need to do your sums and see what you can afford. If you are wanting to invest in higher capital growth properties look inner city such as St Kilda and elwood. For 350 you will get a nice 1950s apartment near the beach and shops. The returns are normally under 5%. However I know someone running back packers out of apartments and that is dramatically increasing the rent. In my view be careful of areas such as point cook. Many investors have brought there and there could well be an oversupply of investment properyies.
Whether to buy or rent is a personal choice. If I was single and starting off today I would rent and buy an investment. In the long term it will a better buy, as long as you research ther marketNigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi nkibel,
I am single. And I have actually enquired about renting out a 1 BR apt in the city, on average it is about 200-250 per mth. So that works out to be about $1000 a mth. I think, instead of using this for paying rent, I could use this amount to pay off my home loan. What do you think?
Thank you
I think that before you make a decission you need to talk to a good broker and discuss your position. Look to what you can borrow and where to buy for investment. Then look at the shortfall and that will tell you what you can afford. In your position I would still consider an older style apartment in Elwood St Kilda, get someone in to share if needby or buy for investment. This will make much better sense in the long run because you should get much better capital growth than the point cook area. If you live in the Elwood st kilda area you get great lifestyle and provided you are careful with what you buy it should be a wise decision.
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
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