Buying first property

New Investor said:

hello all.
New to this forum and am pleased I found it.
My question is fairly simple.
I have no debt and have managed to scrap together a modest 35k. I have never owned a property before, so I guess I get the government 7k first home buyers grant.
I currently rent a property and due to the nature of my work, I have generally in the past just rented in different cities.
My question is should I buy a house/flat and live in it for a while, then if need be rent it out if I have too? I can probably afford to maintain the mortgage repayments with or without a tenant, as well as pay rent on a property if need be.
Are we at the peak of the boom and should I wait until prices ease a little?
Can I get any benefit from this or am I better off just investing the money elswhere say in shares or whatever.
Thanks

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Kristine.. said:

Hello NewInvestor and welcome to the Forum

Yes, you probably would be eligible for the FHOG, and depending on which State, perhaps some Stamp Duty concessions, too.

Yes, you and others who move around for work are realising that buying a property 'somewhere' keeps them in the market and later, if / when the roaming days are done, there is a capital asset at the end of the rainbow.

If you can afford mortgage repayments regardless of vacancies you are in a strong position.

What is the peak of what boom?

When will prices ease?

Without a crystal ball it is difficult to answer these questions. In the meantime, the property with your name on it will be happily earning you rent and quietly improving in value (assuming you follow some basic rules of investing which primarily are: Buy something in good condition in a locality where people want to live.

Whether you buy shares is up to you. This is not a share forum, but there are plenty around. Here, we talk property and a few of us actually buy it!!

What type of property will be best for you will be unique to you. Everybody has a favourite type of property but as you go along through the years you may buy a mixture of types eg single family homes, flats or apartments, shops etc

A good starting point is the triple fronted cream brick veneer on a standard block in an established area within easy distance of the usual schools, public transport, shopping, medical facilities etc etc There are of course many variations on this theme including new homes, 'off-the-plan' purchases, duplex or whatever.

Buy around or slightly under the published median figure for your target area. This way your generic property will more than likely fulfill your and your lenders generic expectations for the property and for the area including rent, growth etc

Good luck. The chase is half the fun, but nothing feels quite as good as walking through your own door for the first time!

Regards

Kristine

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