Hi guys,
I have looked at this forum on and off for the last two years. I will give you what facts I can, please ask if I have forgotton something critical
Myself and my wife own a property that is worth approx 410K we owe approx 280k. Our loan costs 2411.5 p/m (this will go down aprox 200.00) as we have a fixed loan that finishes in early Nov.
We have a combined gross income of 8k a month (5k me, 3k the Mrs). Here is the kicker, wife is preganant and due in Dec. She will have paid maternity leave until 01/02/11 and then we get the 5k baby bonus. Hopefully going back to work July/Aug next year.
I realy don't know what the best way to use the equity we have, and if we wait to purchase a IP till mid/late nxt year than properties will be in the 500k+ and price us out of the market. I have also looked at country Vic where 250k properties and 250 p/w rent can be found, but capital is very slow.
We currently save approx 1200 p/m
Your opinions and help is greatly apprciated.
Sorry if anything is not 100%, and keep up the great work this site rocks!!!!!
Capital growth is slower in regional Vic but you can buy a near new/or new 3-4 Bedroom house for around $300-350K which will give you high depreciation. Also there are a fair few properties where the rental yield is pretty good and the vacancy rates are below 2%, we are currently looking in Bendigo, Ballarat, Wodonga and Geelong probably just going to watch the sales and rental markets for a few months but at the moment I'm liking Bendigo
Because the capital growth is slower would need to plan to hold it for longer.
Congrats on the soon to arrive baby, it must be an exciting time.
You have a fair bit of equity you can access in your current home. Depending on your current lender, you may be able to top up your loan to 90% LVR, giving you around the $85k mark as a deposit towards an investment loan.
Your servacibility, before your wife goes on mat leave, appears to be quite strong. This will obviously decline once she goes on leave (and stops being paid mat leave).
It might be best to wait until July next year to make the decision about purchasing your first IP. That way, you'll be avoiding any financial stress that may come along with owning a new IP, losing one income and having a new arrival.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
be careful, from experience that sudden drop to one wage plus increased costs of all the things babies require can come as a shock even if your just trying too maintain your lifestyle let alone buying an IP… and although waiting till next year might seem frustrating, you might also want to make sure the baby will arrive healthy and mum is doing ok and not have any problems and then make sure the wife does want to go back that quickly, a bunch of things can impact on that decision as well…
a huge change having a child (if its your first) and and a big step buying an IP might want to be spaced out a bit…
but u know better than us your circumstances…
Congratulations to you both !!
I totally agree with Jamie. Good Advise
Shelley Veale
http://www.empowerwealth.com.au / 0409508211Thanks for the replies so far guys, this will be number two so the 'adjustment' of having kids is part way there. With the median price going up 30% in the past year, do you think holding off will be OK. We are just worried that we will not be able to get a house anywhere (outside of outer suburbs) for less then 450 in 6-12 months time.
Even Broadmeadows is now in the low/mid 400's lol!Cheers!
Mick
Yeah, that can be a dillema. I'm not sure how things are looking in that area, but nationally prices are starting to slow down. You could always broaden your horizons and look for an area that hasn't already experienced such massive growth (perhaps a different state).
On a positive note, I can't see those areas mentioned acheiving another year of 30% increases – however, I'd be reluctant to buy in an area that has already acheived such massive growth (I would have missed the boat).
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
