Hi, this is my first post in here. Im about to embark on buying my first property with the goal in the back of my mind to to be able to start building my own property port folio. I live over 1200kms north of my nearest capital city so am finding it really hard trying to get financial advise.
If anyone could please give me their opinion it would be greatly appreciated.
Im not entitled to first home buyers as i’ll be buying with my partner whos already owned a home. Where i am living currently is going through the roof in property prices and we may only see 1-2 properties on the market in any given week. We love living here and our commitments lye here however buying our first home will set us back approx 400k…..i live in Exmouth WA, im pretty sure the capital growth will continue to rise due to the lack of land available, however investing here will take up a majority of our income. Im not sure whether buying here would be the best move or buyng somewhere else for less which recieves a higher rent would be a better idea.
So, do i get the investment property first, then look towards my own home, or get my own home first then try and get an investment property in another 12 months time?
Im really unsure which path would be financially smarter.
ANY help greatly appreciated!
Hi there
First welcome to the forum and I hope you benefit from the varying views and experience that the forum offers.
With regards to your dilema i think this is a personal decision you and your partner alone will need to make but i guess all we as fellow members can do is offer you advice.
One of the main considerations of purchasing a property is affordability and I could never recommend that you over commit yourself.
From your post I assume that you are currently renting and I think you need to weigh up the weekly equivilent of interest only or P & I repayments for a similar property.
If you start your property portfolio with an IP then you may receive assistance in making the repayments from both the tenant and the Taxman. Investment decisions should however not be limited to such as Tax concessions change and no investment should be made on this basis alone.
Whilst the State has enjoyed a boom time over the last couple of years make sure you are not buying at the end of such cycle. Qld experienced a similar growth between 2001 & 2004 although now the market has certainly slowed to a more affordable pace.
A recent survey suggested that nearly 1/3 of investors would be forced to sell their IP’s if interest rates where increased by 1% so whether it is an IP or your own home make sure you buy within your income boundaries.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
