Hi Everyone,
It’s been a while since I’ve posted, and I’ve away from the whole investing thing for a while – I started a new job about 3 months ago and I have been thinking so much about that, that I haven’t been thinking too much about property, however it’s time that I get serious.
I currently have a $18500 deposit sitting in my bank account, this should be $20,000 in a month’s time. My new job is a contract job (for the Government). It is a rolling contract and the only reason that I am on contract is due to the way that the Government “hides” money spent via payroll. I am in a secure position, but how do I prove that? I am on $22 per hour, but remember I do not get any Annual or Sick Leave. I am estimating that after taking a few days off here and there I would be on around $41250. I am 21.
I am currently living at home and don’t want to move out for at least another year (So I can save for another deposit
I would like to find a 3 bedroom home (although I am flexible – I don’t want to restrict myself too much) in the North-Eastern suburbs of Adelaide, probably limiting myself at $240,000.
Now, my questions are;
– Since I am on contract, am I going to have trouble getting a loan?
– What sort of insurance would I be looking at for this house?
– Should I try and get a fixed rate loan? People seem to be suggesting that interest ratesare going to rocket up in the next year or so. (Although how credible this is, I don’t know)
– Is it worth me living in this house? I am struggling to remember, but if I live in this house for one day, I am exempt from CGT? Excuse my ignorance, but I can’t remember).
– It isn’t really convenient for me to live in it at the moment (for the FHOG); do you think it is a waste to forego the $7000?
– What can I do to push myself to actually do this? I have been saying I want to invest in property for a while now but it hasn’t happened! I’m scared I will make a wrong decision I guess; is it hard to lose in property?Any other advice would be greatly appreciated!
Thanks,
Jase.Hi Jase,
Not trying to scare you but to be realistic,Yes you CAN loose in property. I’ve done it! [biggrin], I have lost money in the past by making the wrong descisions in property.
The key thing is education and strategy!
what are you buying for, cash flow/ appreciation/ manufactured equity etc, you need to know this before you buy!
Why the Northern suburbs of Adelaide?
If you forgo the FHOG, you will get rent from the property (as opposed to living in it), you need to calculate which is more!
I chose NOT to recieve a FHOG when I bought my first property!
Just some thoughts!!!
We buy properties in Adelaide. No Agent Fees.
[email protected]
INCREASE THE CASH FLOW FROM YOUR INVESTMENT PROPERTIES!
http://www.renttoownau.com/ http://www.vendorfinanceau.com/Thanks Dr.X;
Originally posted by Dr.X:
what are you buying for, cash flow/ appreciation/ manufactured equity etc, you need to know this before you buy!I am looking for cash flow, however I don’t need it now. “Future Cashflow?” [biggrin] I am comfortable with the money that I am earning at the moment, just looking forward to the future, say 35+ when it would be nice to have a bit more money coming in every week. It would be great to be financially independant by 55.
Originally posted by Dr.X:
Why the Northern suburbs of Adelaide?I grew up in the Northern suburbs and I know them the best. I am constantly looking everywhere, but I feel I have the best knowledge of these suburbs. Unfortunately out this side of Adelaide most of the prices are already higher, however from what I have gathered, they are still increasing in value at a steady rate.
Originally posted by Dr.X:
If you forgo the FHOG, you will get rent from the property (as opposed to living in it), you need to calculate which is more!I didn’t think about it that way. I would imagine that my property would be being rented for around $220 per week, so it wouldn’t quite make the $7000, but after bills, it probably would…
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