Hey Everyone,
I am purchasing my first home in about 8 weeks time. I have been looking and just really not to sure what to go with.
I am 21 years old with a $50 000 depsoit and have a verbal approval for $375 000
I am from WA and have been looking at Houses in Coolbellup and Hamilton Hill. Villas in Palmyra, Bicton, Attadale, Melville, Scarborough and Mount Pleasant. Apartments/Strata Town Houses in Churchlands and CBD/East Perth.
I would live in the home for 6 – 12 months renting out 1 or 2 rooms (depending on how many rooms the house/villa/apartment will have) and move back home rent free. I will then rent out the place I purchased.
After saving another $50 000 I will be looking to get a work transfer to Melbourne to buy my PPOR
I am wandering what option I should go for for my first purcahse? A house, villa, apartment, strata townhouse?
Thanks for the help, much appreciated
If you don't plan to live in it, don't get precious about it. It sounds like the house will become an investment property. If that is the case, go for as new a house as possible to maximise depreciation. If you can afford anything close to the CBD you will be able to get a good rent for it. The suburb is your choice of course. Scarborough is obviously a more affluent area than Coolbellup for example. If you can save $50K in 6-12 months after buying a property and paying repayments, then why are you looking fior a work transfer. God damn!
Where are you living now? With the wage you are earning you must be paying a shitload of tax. Rent/live at home and buy 2 properties to negative gear if you are moving to melbourneCHIS wrote:If you don't plan to live in it, don't get precious about it. It sounds like the house will become an investment property. If that is the case, go for as new a house as possible to maximise depreciation. If you can afford anything close to the CBD you will be able to get a good rent for it. The suburb is your choice of course. Scarborough is obviously a more affluent area than Coolbellup for example. If you can save $50K in 6-12 months after buying a property and paying repayments, then why are you looking fior a work transfer. God damn!
Where are you living now? With the wage you are earning you must be paying a shitload of tax. Rent/live at home and buy 2 properties to negative gear if you are moving to melbourneNot leaving work, just a transfer from the Perth office to the Melbourne office.
I have saved $50 000 over the last 24 months so would move back home after 6 – 12 months and save again for the next 18 – 24 before moving to melbourne. Just struggling to decide what kind of place to buy and where. Obviously close to the city is a good idea but an apartment, villa or house? Have just seen a Free standing house in Scarborough 2 streets from the beach asking $400 000. My max is $375 000
Living in South perth at the moment
Como, highgate,east perth etc are good for units as many renters wanting units close to city. Also good demand for houses in suburbs a bit further out for younger families.
One of the things to consider when choosing unit or house is what is your long term objectives? If you are looking at a long term buy and hold (plus being in Melbourne in a couple of years time) then units will have alot less maintainence issues to deal with, and normally a stead income flow. If you are looking at property developments later on then an older place on a big block. If you bought a block in Balga it can be sub divded etc, but being an older place you may have to spend a bit on maintaining the place before then.
If you are looking at living in the place for 6 months, find a place that looks a bit scruffy and spend some time doing it up whilst it is your PPOR. Give the outside a clean up, a new colour scheme, floor coverings, sky lights etc all add extra value to your place, make it more attractive to future tenants and you can increase the rent. Important thing to do is to get it revalued when you move out so the capital gains durring the time it was your PPOR was CGT free. This can be done to both units and houses. By the time you move out you would of gained extra equity (tax free) and have a higher cash flow when it becomes a rental. These two things will allow you to get your 2nd property earlier.
Regards
Todd
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