Now, I have been watching the market for two years of late, and have been trying to figure out what would be the best shot. Im 24 years of age (single income), in a decent, good coin and in-demand career (construction surveyor) and have got some savings i really want to do something with. I've got some gold and silver (not alot >5k) which i've had for a year, shares have been a disaster (lost a grand after the greece default thingie) and hasn't really moved all that much.
Now I fully understand where property is heading at the moment, and capital gains are pretty much a no-go, but is it still worth doing something that has very small negitive rent to mortgage cash flow? I dont really need a place to live, as wherever i work in melbourne, my boss will rent a place for me to be. But i still some of my stuff at my parents house. and i go back and stay there on the weekends.
I've had an offer accepted on a two story, two bedroom unit in frankston (next to monash uni) for $221,000 with a 60 day settlement. I would be going in at 80% LVR and borrowing $180,000 . With that repayments would be $1120 a month. The unit is currently being rented out for $990 a month. I've found strata fees are around 800 a year, and council rates would be around that too.
Pro's for the unit:
Near my parents place and where i grew up (frankston too!)
- Next to a university
- In frankston (which i keep getting drummed in about, how it comes up on the top 100 lists all the time for property investment
- Frankston is having some major infrastructure changes in the next few years (peninsula link, hastings marina/port and all the rail upgrades along with that)
- Opputunity to value-add, as it is still very livable, could do with a spruce up
The cooling off period ends on wednesday. So I'm considering my options.
1. go through with it, leave it for abit with the current tenants (claim the negative gearing on tax)
2. Live in it for 6 months are have a friend board in the other bedroom, and do some light DIY , then board out the other room, and hopefully to to get 135 a room which would make it neturally geared
3. Go north or west as a mining surveyor, and try to own it outright over the next two to three years, as well as rent it out
4. Dont go through with it, invest in something else
5. live in it, and make the other room
I was thinking of the SHTF scenario of house prices going down by 60% percent in a year I could try and down pay it as much as i can, then sell up for 60% less, and try and refinance and get something alot bigger and then leverage after a crash.
Please tell me what you think, i was too young (and at uni) to buy pre 06' before the real boom.
Is there anything else bayside that would be above 6% yield?
Now I fully understand where property is heading at the moment, and capital gains are pretty much a no-go, but is it still worth doing something that has very small negitive rent to mortgage cash flow? I dont really need a place to live, as wherever i work in melbourne, my boss will rent a place for me to be. But i still some of my stuff at my parents house. and i go back and stay there on the weekends.
I've had an offer accepted on a two story, two bedroom unit in frankston (next to monash uni) for $221,000 with a 60 day settlement. I would be going in at 80% LVR and borrowing $180,000 . With that repayments would be $1120 a month. The unit is currently being rented out for $990 a month. I've found strata fees are around 800 a year, and council rates would be around that too.
Pro's for the unit:
Near my parents place and where i grew up (frankston too!)
- Next to a university
- In frankston (which i keep getting drummed in about, how it comes up on the top 100 lists all the time for property investment
- Frankston is having some major infrastructure changes in the next few years (peninsula link, hastings marina/port and all the rail upgrades along with that)
- Opputunity to value-add, as it is still very livable, could do with a spruce up
The cooling off period ends on wednesday. So I'm considering my options.
1. go through with it, leave it for abit with the current tenants (claim the negative gearing on tax)
2. Live in it for 6 months are have a friend board in the other bedroom, and do some light DIY , then board out the other room, and hopefully to to get 135 a room which would make it neturally geared
3. Go north or west as a mining surveyor, and try to own it outright over the next two to three years, as well as rent it out
4. Dont go through with it, invest in something else
5. live in it, and make the other room
I was thinking of the SHTF scenario of house prices going down by 60% percent in a year I could try and down pay it as much as i can, then sell up for 60% less, and try and refinance and get something alot bigger and then leverage after a crash.
Please tell me what you think, i was too young (and at uni) to buy pre 06' before the real boom.
Is there anything else bayside that would be above 6% yield?
.
