Hi All,
will be a first-timer for property buying. I'm on 109,000 including super and am now getting more serious about money management and investing etc. I really suxed at it till lately. I have just recently paid off my car, CC debt and now am looking to save as much as possible in the next 6-12mths. Problem I have, is deciding whether to invest or buy to live in.
I live in a rented 2 bedroom apartment where I sub-let to Japanese student(s). My portion of the rent is only $215 a week. It is a great loation, near Ferry/Train/Work/City/Beaches. All within at most 10-20mins of. So to move, it would be hard to lose all that convenience. If I were to buy in Syd, it would be a 2-3 bed apartment, that I would still sub-let to students if I lived in it. Alexandria or Pyrmont look appealing.
Due to that, I've been considering just investing, rather than takng advantage of FHOG, which I believe is halved from the end of Sep 09. I have suburbs in two cities in mind. Frankston in Vic and Salisbury/Christies Beach in SA. I am visiting Adelaide for 3 days next week and Melb the end of Oct. Does anyone have any advice on these areas of late. I did search a bit on them here but more info is always good.
I was considering a property of 250,000 – 350,000. I'm willing to hold for the long term if needed for good returns. Not looking for a get rich quick fix. I know I can negative gear if I invest. My accountant mate says with the low rent and high quality of life I currently have where I live, I should just invest. Thoughts?
If I wait till after Sep or even Dec, I will lose the FHOG; unless they extend again. I also hear that maybe after the FHOG grant is pulled that maybe the market might drop more in some areas as buyers dry up. I don't mind waiting another 6-12mths. I will just have a bigger deposit if so. Thoughts?
I have much more I want to ask, but will wait till I see initial responses from some here. Cheers.
Mark
Don't know much about Salisbury – haven't been there is almost 20 years. But think Frankston is a good option (certain areas – south) – a huge marina is about to start being built end of this year.
We just bought in Seaford which is the next suburb back towards Melbourne – 2 bedroom townhouse across the road from the beach, walking distance to train and shops, pool on the complex for well under $300k.
Good luck with itWant to add, I've recently been considering an IO loan. I realize that this would be riskier and would require probably selling 7-10yrs down the track. Please, thoughts on this as well. Pros/Cons etc. Cheers.
Mark
maree_bradross wrote:Don't know much about Salisbury – haven't been there is almost 20 years. But think Frankston is a good option (certain areas – south) – a huge marina is about to start being built end of this year.
We just bought in Seaford which is the next suburb back towards Melbourne – 2 bedroom townhouse across the road from the beach, walking distance to train and shops, pool on the complex for well under $300k.
Good luck with itWhat is your rent return (yield) on this property? Cheers.
Mark
sorry this is going to be PPOR – my gf bought in Seaford at the start of the year when prices were still high and hers is positive.
Ours was tenanted at $275 a week but needs modernising – the previous owner purchased for $265k 2 years ago and we got it at $284k settlement within the weekmaree_bradross wrote:sorry this is going to be PPOR – my gf bought in Seaford at the start of the year when prices were still high and hers is positive.
Ours was tenanted at $275 a week but needs modernising – the previous owner purchased for $265k 2 years ago and we got it at $284k settlement within the weekOk, great…thanx
Not a lot of advice coming forward here..did I perhaps ask in the wrong section? Were my questions perhaps to generic or not enuff info? Cheers.
Mark
Could you afford to buy a property in the area you currently live in? If so, I would potentially look at that option.. rather than having to pay rent money.
I also look at interest only as a better option that renting aswell, but I would only do interest only if you are quite confident that there is going to be substantial growth – I have one property (live in) that I am converting to IO and will settle next month on another property I have bought that is also IO – both of which are in Frankston
Maree_Bradross – I think I know the apartment you have bought, I recall seeing it in my searches – great location across from the beach! I was after one that was advertised for 290-320 and it sold for 330 – also on the nepean!
sophieh wrote:Could you afford to buy a property in the area you currently live in? If so, I would potentially look at that option.. rather than having to pay rent money. I also look at interest only as a better option that renting aswell, but I would only do interest only if you are quite confident that there is going to be substantial growth – I have one property (live in) that I am converting to IO and will settle next month on another property I have bought that is also IO – both of which are in Frankston Maree_Bradross – I think I know the apartment you have bought, I recall seeing it in my searches – great location across from the beach! I was after one that was advertised for 290-320 and it sold for 330 – also on the nepean!No, unfortunately, I cannot afford to buy in Kirribilli for the property type similar to the one I live in. We are on the harbour, pool/bbq area and other benefits I mentioned in my original post….ferry is a 20sec walk, one stop to circular quay..10mins to Milsons Point station…8-10mins by car/taxi to the city….15-20mins to Manly etc….wud luv to buy here, though…future plan!
Just to add….we pay $1780 a month rent..I get $115 a week x 2 (total of just under $1000 a month) from the two Japanese students I have here….that reduces my rent quite some….all that luxury/convenience is hard to give up for that outlay….cheers.
Mark
Well then why not invest and stay where you are, have that as your long term goal
Ipswich is apparently another area that will be increasing in value over the next couple of years..
sophieh wrote:Well then why not invest and stay where you are, have that as your long term goal Ipswich is apparently another area that will be increasing in value over the next couple of years..Yes, that is the goal…
Ipswich? Any particular area, as it's a rather larger region…almost 3000 properties when including all localities…cheers.
Mark
Hi Mark
You pay 215pw @ Kirribilli? Stay right where you are. Invest in Pyrmont, Ultimo is a sleeper I hear. Surry Hills, anything close to the CBD. These areas are huge for students. There are companies that will rent the property from you to sublet to students. Chippendale is an area where i know this is happening. (not us)
Think about the things you look for when renting and you will have a list of things to look for in your own place. We have 4 Sydney properties and 1 regional. When we bought the regional, our solictor said we shouldnt as it was too far away. Well thought we were right to buy a cheap regional and it turned out we were wrong! This is an opinion that we have formed for ourselves. It works for some people but not for us.
When thing go wrong you are at the mercy of someone's mate and you cant get there to check the job. You may not even know they are mates. For us one of the things was a little plumbing job which became a nightmare because we didnt know how big the job was until we got the bill!
We resolved to buy nothing further than we could easily drive to to enable us to check out problems easily.
You dont mention how old you are but I take it you have a while to go. You mentioned you dont mind buying and holding. Keep buying property near where you live and let it grow.
Keep accumulating until you want to go sit under a tree, then sell off one at a time.
Good luck
Toni
Hi Toni,
yes, have considered inner city close to CBD, but I am not wanting to take such a risk, the amount required to purchase there (400,000 – 600,000), for my first venture. Still, am open to review that point of view. Cheers.
Mark
As close to CBD as possible – Margaret Lomas talks about Ipswich a bit.. I was searching and found around bundamba pretty cheap and close to CBD mind you I know nothing about the area at all
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