advice please?

[wanna_b_rich12]

hey guys, im 21 years old and looking to purchase my first investment property. i have been saving around $500 a week recently and have $15,000 to put towards a property. now i figured with the first home buyers grant of 14 grand i would jump on the opportunity. is it possible for me to move into my investment property for 6 months only, just to receive the first home buyers grant? will i then have troubles change my primary place of residency when i move back home to my parents when the 6 months is over?
Also on approximately $1050 after tax a week with no expenses how much do you think i may be able to borrow , and any suggestions where is a good area in sydney for a long term investment ( i dont plan on ever selling ) .
Should i look into units because they are cheaper, or would i be better off buying a house in a less expensive area so there is no strata etc.

Thanx for your help , gordon

 

[Propertunity]

hey guys, im 21 years old and looking to purchase my first investment property. i have been saving around $500 a week recently and have $15,000 to put towards a property. now i figured with the first home buyers grant of 14 grand i would jump on the opportunity.

Well done Gordon - on the savings and the desire to move forward with your investing

is it possible for me to move into my investment property for 6 months only, just to receive the first home buyers grant?

Yes

will i then have troubles change my primary place of residency when i move back home to my parents when the 6 months is over?

No

Also on approximately $1050 after tax a week with no expenses how much do you think i may be able to borrow ,

No - probably heaps tho. I'll defer to the MBs on here to let you know.

and any suggestions where is a good area in sydney for a long term investment ( i dont plan on ever selling ) .

Yes, but much of recommendations on where to buy will be determined by how much you can borrow. Let's get that answer first and work from there.

Should i look into units because they are cheaper, or would i be better off buying a house in a less expensive area so there is no strata etc.

Generally house & land because land goes up and buildings go down. BUT there are always exceptions to the rule e.g. Units where the land value is still high - like the Eastern Suburbs. HOWEVER, many investors have done well from units and townhouses - so it probably does not make too much difference in the long run.
Buy what you feel comfortable with and what you can reasonably afford and afford to service the debt levels.

 

[Peter_Tersteeg]

Making some very, very broad assumptions (absolutely no debt, not even a credit card, and your net weekly income is $1050), your borrowing capacity is probably around $450k. This assumes you're buying as a first home owner, not an investor.

Your main limitation at this point is your deposit. Just about every lender requires you to show your own savings of 5%. Given you've saved $15k to date, this would suggest a purchase price of $300k (300k x 5% = 15k). The FHOG would make up any additional costs required.

As I mentioned, there are a few assumptions made in this, but you can give me a quick call to clarify the fuzzy bits if you like.