Hi everyone,
I am hoping I can get some advice on what we should do.
We are currently renting in Brisbane and we would like to get into the property market.
I am just interested in some thoughts about either buying a unit, living in it for a few years before we have a child then buying a house and renting out the unit. Or continue renting until we are ready to buy a house and buy an investment unit in the meantime.
We are quite naive when it comes to costs involved etc so would love some thoughts.
ThanksI’d check out buying a house now that would suit your new family arrangement, in a suburb you would be happy to settle into with a family, and throw as much two income funds into it as you can manage. By the time you have a baby, you will have some equity in it and can then make further decisions as to whether you want to stay there or keep it as a rental.
Just my thoughts, Wylie.
Thanks Wylie.
The problem is we don’t feel we are ready to buy a house yet, emotionally or financially. We prefer unit living for now.
Lobby78,
Reading your last reply you have already made up your mind and decided on unit living for the time being. This is fine as a trend in Sydney seems to be that people are moving/staying in a unit with their familes to be closer to work and the cafe scene etc.
Just a thought but why don’t you buy a cheaper unit to get your foot in the door and buy something later on if you find that unit living is not for you at least you will have either a decent deposit or equity to make the next step.
Let us know how you go
Jenny1
Thanks Jenny
Do you think it would be silly to buy and live in a unit for a couple of years and then sell it to upgrade to a house? If the market doesn’t rise I guess there is the risk of not making anything on the unit.
I think your current “feelings” will limit what you can achieve.
How about considering this:
Buy a cheaper unit now. Get an IO loan for 80% of price.
Put all funds into an offset account and “save” a 20% deposit in there for your home purchase.
When you need it – buy the home and keep the unit as an investment.
Many people here start off nervously buying one property then catch the bug and own multiples. The only thing that will stop you is your beliefs.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Heres another suggestion to ponder to those others already suggested, why dont you buy an investment property first, ideally something run down that you can negotiate well on and spend some money to get it up to scratch. Then refinance based on the improved valuation after your reno and pull equity to move on to the next one and do the same again.
If you believe in yourself and do this well a couple of times, you could pull out enough to also have a deposit on your own home.
I wouldnt suggest doing this unless you are fully committed to putting some time and effort into building a property portfolio thou, but is just an alternative suggestion that works for some in order to build equity a bit faster.
Positive Cashflow NZ Properties
Email me for a current list of deals
[email protected]No one can make this decision but yourselves.
Keep in mind, however, that if you do buy to live in as your PPOR you may qualify for stamp duty concessions and the $7K FHOG as well. If you then sell later down the track no capital gains tax is payable on a PPOR. Even if you only lived in it for a short period and then rented it out, you are able to do so for 6 yrs before being liable for any cgt.
Good luck with whatever you decide
Cheers,
Jacque
http://www.housesearchaustralia.com.au
Totally Independent Buyers Agents- Sydneyhttp://www.invested.com.au Australia’s premier Investor Education site
You must be logged in to reply to this topic. If you don't have an account, you can register here.
