Hi Everyone,
This is really early days for me.
I am 22 with a full time job making $50k – $60k a year. I recently purchased a new car at an auction for 28k which is worth approx 35k as it was an ex lease car brand new for 64k .
My question is would it be wise to sell it for a house deposit I also have 10k in savings.
Where do I start? I was to be successful at buying a first home.
Hi JD,
It is tough question to answer as you may need the $28 car as a lifestyle choice. If your first objective/strategy is to get into the market then the question is can you sell your car and do with a cheaper car?
The biggest thing that I see face first time buyers isn't servicing but the deposit. For example, if you are pruchasing a house for $400,000 then you would require at least $38,000 in deposit. If you are eligible for the $7,000 grant then that is $31,00 in your own funds. So you are quite limited with what you are able to do with a $10,000 deposit.
What is your budget? Is the property a PPOR or IP? Which state are you looking at purchasing?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi JD
It's a personal choice.
If it were me, I would have forgone the expensive car early on and put the cash towards an asset that appreciates rather than depreciates.
Don't get me wrong – I love cars, but there's a time for them and spending half your salary on one when you want to purchase a property doesn't sound like the right time.
Each to their own though.
Cheers
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 got a loan on the car?
If you do then it would be in your interest to get rid of the loan asap. Your transport needs (not wants) will determine whether or not you should attack the loan as quickly as possible or sell the car.
If you paid cash then this indicates you have good money management strategies to save a good sum of money at a relatively early age. Repeat the process to save yoursellf a deposit – and this time purchase an asset rather than a liability.
By the way congrats on wanting to get into property at your age – that places you ahead of many, many others in society.
Thank you for your replies,
I own an older car which was not going the time of purchase. That why I went looking for a new car.
i paid 8k in cash and borrowed 20k on a three year loan, I am considering upping my payments which are $175 a week to pay my loan out quicker.
Now my older car is going I'm considering selling my newer car so I can have money to have opportunities however my boyfriend thinks the idea of selling my car to buy a house is stupid but since I don't know what is in my best interest I am researching to see how I can better my future. If I'm going to go into the property market I want to do it properly.
I am a good saver but since I started renting on my own saving hasn't been the same.
I live in Townsville and I'm constantly looking at properties. I would like to set myself a budget of 300k for my first house.
JDKirkman wrote:my boyfriend thinks the idea of selling my car to buy a house is stupid but since I don't know what is in my best interest .Buying an asset is often in your best interests.
With all due respect to your boyfriend – sometimes those closest to you are not the best source of advice.
When doing all of your planning do not forget to factor in FHOG and Stamp Duty discounts. I know a number of people who have used available grants to buy their first home, make sure the fulfilled their obligations and then moved out to change the property into an investment property.
Having said that it has been a while since I looked at the Qld FHOG conditions and benefits.
The FHOG is $7k currently in QLD with builders also offering a building bonus of 10k …
l was looking to build at the end of last year but I do like to idea of renovating once again for a first home maybe buying established is better or at least a newer home and it's easier?
I too live in Townsville and have been watching the market very closely. There are some great oppurtunities around.
At 25 I've just settled on IP2 in Townsville, a basic 2 bed unit 20% Below market value (using comparable sales not listings), with a gross yield of 8% and minimal holding costs.
Prices have really crumbled in the area in the last couple of years and there doesn't seem to be much activity in the market, so by getting out there and talking to the agents and making yourself known as a serious buyer, you can find some real bargains.
The North Shore development also offers great opportunity for investors with good prices on house and land packages, good rental return and depreciation, and high demand and infrastructure spending up there. If I was to buy in Townsville again it would be a new build in North Shore, however I'm now ready to step outside of my back yard and am looking to purchase interstate.
Also I don't think your boyfriend is helping your situation at all, remember if you surround yourself with determined and successful people, you greatly increase your chances of success….and vice versa.
so Ricksta where do I go to educate myself on home buying the smart way?
Um this doesnt sound very sexy but IMO, read everything you can online and in books and try to develop relationships with people who have experience in property, or at least have an interest in property.
All the info is out there it's filtering through all the cra# that is the hard part.
This site has some great info and is certainly a good start.
The fact that you are here expressing an interest to learn already puts you way ahead of the pack.
If you wanna chat some time I'd be more than happy, just shoot me a message.
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