Hello all,
I recently got into reading up in PI and am very interested in getting involved in it. My current situation:
– 19 years old
– Earn 55,000 p/a
– After all expenses I manage $1500 a fortnight,
– I save $1000 of this per fortnight
– Currently reside in Darwin
– Have $20,000 in savings
– Also have no debt, or personal loansI'm just after some suggestions as to what I can do with my current situation, I quite like the idea of CF+ property, however have found that it's rather difficult to find. I have also thought that perhaps I could purchase a property up here in Darwin use it as a PPOR for the period required to gain access to the first home owners grant. This would however alter my situation significantly, as I would require a vehicle to get to work, plus all the costs associated with one. It would also up my cost of living. Although Darwin has good rental returns, the cost of purchasing a house seems quite pricey. Thus I have also been looking at a purchase interstate.
Any suggestions of how I could use my situation to advantage me best in my plans to become a property investor would be much appreciated.
Matt
You need to check out what you would be entitled to under the FHOG
http://www.nt.gov.au/ntt/revenue/home_assist/first_home.shtml
Some states let you rent out a property and still be eligible for the grant however I didn't find any thing about this in the above link.
However it is in the guide that you can't do this in NT.
(b) not have previously owned or held a relevant interest in a residential property anywhere in Australia prior to
1 July 2000, even if they did not occupy the property as their place of residence; andThen you will know that you will get and then weigh up if it is better to stay where you are living and rent out a property
(if you rent out a property it doesn't necessarily have to be in Darwin.)I think,,,
You are cashflow rich, but deposit poor.
If you spoke to a lender or mortgage borker first, find out how much you can actually borrow, then you have an idea of what price range of properties you should be looking for.
I see you mentioned the house are pricy over there, but properties are not just houses. Remember you are looking to make money, not fall in love with your investment. I am sure there are affortable units or apartments in your area where it might be more suitable in your situation.
Bottom line, see how much you can borrow in today's market first, otherwise with that kind of deposit, i will consider getting mid-term off-plan so you have more time to save up in order to get your loan.
Good luck ~
I happened to speak to a financial broker recently, and with my current situation they were willing to loan me $300,000. Granted that is a 95% loan, which would result in loan insurance as an extra expense, obviously this is not significant in the grand scheme of things.
My thinking is that even if i do get approved for the FHOG, that it would not be worth it, as the cost to get to work and living expenses would be increased significantly.
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