What we want is
your story Kim.
You have done so much already, saving for funds to complete and stuff, being here learning, sharing...I see you so poised, ready to strike, you have the power.
<Play Rocky's theme here>
Seriously you are doing it, and it is
completely understandable going through the .."am I jumping in too soon/too late/got enough funds/should I do this, do that" scenarios.
We had some savings, low income and had many choices, we could buy an already established home, an older place and do a renovation of sorts, and I *****ed my donkey ears to 2 x new schools being built in Bendigo (Vic regional city), and found a block of land a few streets away from a new school going up, quiet little street, newer homes, families...bought the block and paid I think it was $39,000, these blocks doubled within 12-18 months btw.
Got a construction going and I think we had ended up borrowing $191,000, all up, was rented before painters had finished, curtains hung..
BUT the thing is we could have invested from many choices...I knew the area, I had studied prices and rentals, just talked to people, gleaning as much info as I could. We would pack a little picnic and drive the streets when we had some time to ourselves, got an update feel for the different areas...it's amazing what you pick up as an osmosis/diffusion thing just by being there. Kept an eye on local papers for local Shire, school news, just stuff...
So, you might have a few areas you are familiar with?
Know your streets, suburbs, what property is fetching, I ratted around the auctions (just as spectator) to get the hang of what went on, what was being sold for what, to whom..chatted to real estate folk, agents, property managers..subscribed to my homepriceguide to see all sales of stuff last 12 months, because I am a curious type.
I did decide we needed to keep it simple for us. So wasn't going to be any renos first, figured that could come later, (and we did)...but some folks do start off with minor reno stuff, eg Nathan and slapping some paint and stuff around up where he is. But because Mr OO is cautious guy, different mindset (at that stage), really wanted to keep it as simple as possible.
Then we discovered somersoft, met up with an old school friend and found a mortgage broker who really, really suited us...that's when the penny dropped, holy crapolo, people can keep buying these suckers and really go places. Branch off into EVERYTHING!
But you do require to get it going.
I realise you will do that at your own pace, own risk and tolerance and SANF level, completely understandable.
Just because the ANZ is playing some tune, you might think you need to be tapdancing to that tune. Explore another bit of music. I... too have heard the ANZ is servicibility wise the most rigorous? or// maybe you can find something more affordable, there are much more savvy and astute figures people on this forum that you can run figures and deals by...maybe check out some properties and post up the figures?
maybe you are working out things in your own mind too:
What about the negative cash flow though? Would you still think it worthwhile to buy a 1 bed unit in Perth with a negative cash flow of $70 a week.
How about I buy a $200 K property in Perth and instead of $70 a week negative cashflow, I put in $20 K of my own cash to make it more cashflow neutral. I would then have $10 K in my bank. Or better yet I put in $10 K of my cash to renovate it. I dont know if its more important to have the money in the my bank account or put the money into a deal.
Maybe it is a better idea for buying something neutral, something up and running, keep it simple to begin with...buy well. You have the buying power, you know what will suit your framework best.
Everyone here (and remember all those that are out doing it-but don't post), has their own story, but started somewhere.
We all start somewhere and then learn some more and adjust the knicker comfort as we go along. But, congrats on what you have worked so hard at so far to achieve and have yourself poised for the choices ahead.
