Wanting to rent it out after 6 months. Im 24 and saved up 24k with my girlfriend. If me and my gf put our minds to saving each year we can achieve 24k minimum each year combined. We were thinking of purchasing 3 months down the track and looking at 2 bedroom appartments in the city. Should we do appartments as a starter or look at surburban areas? As were going to put the loan under one of our names to get the FHOG we can get 250k loan. Any suggestions or advice would be appreciatted.
Where to look depends on the reason for purchasing the property. If it is for an investment and you are aiming for capital growth then i would stay within 10 Km of the city but if it is to live in then go wherever you want to live.
The FHOG is not concerned with whose name is on the loan, but who is on title. Maybe you could get one each?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
As Terry mentioned as long as you are not in a Defacto relationship and all other areas of the FHOG qualifying criteria are met then why not consider 1 each it is a combined amount of $28K you will receive.
Richard Taylor | Australia's leading private lender
Its a bit out of our comfort zone to start off buying two IP under FHOG but thanks for the tip anyway.
What IP is better for cash flow in Melbourne ( residential within 10km of CBD or appartments in the CBD) ? After buying the first IP me and my gf will save another 24k minimum by 12 months so we can buy another IP. Thats our goal for next year. Which properties will make sure we can keep going at this pace?I didnt realise you were in Vic.
Remember until 30 June 2009 the increased Grant is available and also the further subsidy from the State Govt.
You dont have to use the Grant as deposit and could always retain this in cash funds to cover your interest for the next 6-12 months.
As i say if you structure your loan correctly when you move out of the property you could convert it back to an IP and the shortfall would be covered by rent and negative gearing.
Richard Taylor | Australia's leading private lender
And you don't have to buy 2 now, but you could do it so you have the ability to get the grant again in the future.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sav wrote:Wanting to rent it out after 6 months. Im 24 and saved up 24k with my girlfriend. If me and my gf put our minds to saving each year we can achieve 24k minimum each year combined. We were thinking of purchasing 3 months down the track and looking at 2 bedroom appartments in the city. Should we do appartments as a starter or look at surburban areas? As were going to put the loan under one of our names to get the FHOG we can get 250k loan. Any suggestions or advice would be appreciatted.
You're still looking after all this time ?
https://www.propertyinvesting.com/forums/property-investing/help-needed/4325331With a combined income of $95k a year and renting I would have expected that you'd have at least $50k in the bank by now, instead you've managed to save -$1K in the past 6 months. I would suggest you look at your budget and sort it out before looking at buying anything. Unlike renting when you buy own your place you are also up for council and water rates, insurance and other maintenance expenses on top of mortgage repayments. If you decide to rent it out you also have to be prepared for the unexpected like not finding a tenant for a few months or finding a bad tenant who stops paying rent and refuses to move out which could leave you with 6 months without an income. Don't want to put you off buying but make sure you can handle the cash flow before you do that so you don't end up a statistic in the repo files.
yeah i know its a dissappointment that were still at square one. If we dont make up our minds to buying a house or appartment were just going to spend the money thats what happened. Im just sick of it and just want to buy IP and make a future for me and my girlfriend. Ran into a couple of hurdles with money the past 6 months so yeah its all good now.
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