Hello property guys I havent been on here much lately but I have ben thinking recently.
Heres my situation, I am in my 2nd (of 3) years of study at university and am looking at doing an honours year and a 3 year PhD at the end of that (So I will finish it all by the end of 2013).
At the end of next year I should have 20K in my bank and my GF should have around 10K. I want to live in the north shore area of sydney, so it will be expensive. Though I don't want to wait until the end of 2013 to buy my first house. I will be on a low income till the end of 2013 and my GF is not on very good money either.
I don't think we could buy a house in the area I mentioned but maybe in the western suburbs (where 3br are going for around 350K), I live in the western subs currently.So do you reckon we could buy a house at the end of next year with our 30K deposit and rent it out (continue to live at home) and bear the small costs that we can bear until I finish all the uni and then hopefullt the property will be valued much more and we can sell and buy in our desired area.
How would we go buying it (would we need guarantors as both of our incomes is low). Is 30K a small deposit for a 350K house.
Or should I just keep saving and buy at the end of 2013 where we should have a much more significant deposit.
Regards,
Chris.Could I suggest complete your undergrad degree, get a few years experience in your field, then attack your PhD (all that acedemia without experience is worthless). Combine your PhD with a scholarship, a gig lecturing/running tutorials to supplement your income.
HI there,
There are a few considerations you need to take into account.
When buying a house you need to look at all the entry costs (e.g. stamp duty etc) of purchasing not just the deposit
The banks will also look at your ability to service the loan, which based on the answers given, you would probably need a guarantor to cover it.
Don't forget that you also need to consider the ability to cover any cashflow shortages.
If you can find a way into the property market earlier rather than later then it is normally a good thing, but you will probably need to partner with someone to make it happen.
Cheers
Mark
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks guys,
Scott, I was thinking in bed last night about finishing my undergrad year and then get a research assistant job (I already do work experience in my field so a job is guaranteed), I should be getting about 45K a year at the start of 2010.
My income would be higher and then I might be able to jump into the property market easier.
I could do this for a year (or 2,3,etc) then go back and do the honours and phD with scholarships (which are much easier to get when you have experience in the field).Thanks alot guys,
Chris.I leave in the North Shore, but not buying proprieties there. I’m renting in Lane Cove.
I buy chip properties throughout Australia in stable areas with good return and growing population and employment. I’m getting good capital gain too. I really would recommend you to do the same. While you are on low income – you don’t have a large mortgage, higher rental return, is it’s NGP you have tax benefits. Are you doing a part of our work fro home? If so you might be legible to claim pat of rent you pay off tax (and unlike with PPR it will not result in CGT further the track)
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