Hi guys.
i thought i might hijack this thread for a little for advice.
- im 25
- make about 27k per year
- and have saved 50k in 6 years with the aim of buying a motorbike but now a house insted.
- still ive with mum
i feel i am priced out of the gold coast and Brisbane. there for south Australia looks a good place to afford for me.
i intend to stay here (gold coast) and maby buy a house in SA. ive read rich dad poor dad and it made me want to get some investments going before its to late. and ived decided property is the way for me to go.
Good on you! Nice to see you thinking about the future.
what area(s) would you people recommend i buy into. remembering i only make 27k per year so i assume i should buy a house 250k or under. i guess eleszibeth's is a good place to start. anywhere else
If you are looking at SA, I would stick with the Northern suburbs. Southern suburbs and Port Adelaide are good too, but already more expensive (maybe someone with more experience in these areas can help you out more on prices). Up North you could look at Elizabeth suburbs (there are 9 from memory), Salisbury suburbs (although a bit more expensive), Davoren Park, Smithfield/Plains,.
also where should i look. i look currently on realestate.com.au what are other alternatives.
I use realestate.com.au but domain.com.au can also be good. You could also ring a few agents in the area for some extra feedback (Xenia on SS here is very good for info. up North).
ive never been on a plane before so can anyone tell me what areas are ok to look at. and should i catch a plane down there to look.
To be honest you could, but I haven't even looked at some of the houses I bought up here (& I live here!). The old houses all look pretty crappy up North, so don't expect too much
my objective is to sit on the house for maby 15 years or so. and hope that the place i buy becomes as expensive as property is in Brisbane in that time frame.
I think you've got the right idea, sit on it and forget it, let the market do it's job. You're also buying into Adelaide at the right time with the coming mining boom.
it just seems im priced out of every other market.
I know the feeling, this is why I bought up North where it's very cheap, enabled me to get a foot hold in the market.
im a good saver so im sure the bank will give me at least 200k loan.
so yeah am i stupid in thinking buying my first house will be one i dont intend on living in?
Not at all, it may be the smartest decision you'll make as it may enable you to buy a better house for yourself one day down the track. It will also make it easier for you to pay the loan on the property since you'll be getting rent to help you. Once you've made up your mind to buy an investment property(IP), don't let others around you who are less educated on the matter try and talk you out if it.
i think ill buy some books specific to property. but any pointers you guys can give me in my situation would be helpfull. my dad wants me to stay in brisbane region. but its all seems to expensive in my view.
Jan Somers book "More Wealth from Resedential Property" is fantastic. I highly recommend it, and you should be able to get it at any good book shop, or online. Margret Lomas also has some good property books out.
basically here are my questions
- why is adelade so cheap ?
It has already increased in prices over last few years (old houses in up North. were selling for $30-$40k years ago - now $150k+), but it is still relatively cheap at the moment compared to other capital cities in Aust., however we are up for significant increases in coming years, so it remains to be seen how much of the gap will remain.
- how much should i spend on a porperty with 50k deposit ?
Might be a good idea to get some mortgage brokers on SS to help you more with this one. It depends on how much of your income you can afford to put towards any shortfall of the loan. If you can afford say about $3kpa - you may want to look at buying a new house up North for around $220-$230k which will probably cost you about $2-$4k per year out of pocket after rent (but this varies for everyone, that's just a quick round about figure).
It may be better for you to buy an old house up North which may have development potential years down the track (ie. large land content). You could pick one of these up for around $150k or less (depending which suburb), and if you take you're $50k off again, you'll be left with a debt of around $100-$105k (incl buying costs), which at current interest rates, would be about break even for you, and in a year or two, might actually become positively geared (if it's not already). This is just a brief analysis, if you want more detailed figures let us know.
- what are good areas besides the Elisabeth's ?
See above, personally I have bought in Davoren Park (new), Smithfield Plains (new), and Elizabeth North (old).
- should i fly down to buy or trust a real estate agent ?
Others with more experience buying interstate can give you an idea on this. If it was me, I'd probably buy over the net with photos etc. and get a building inspection done if necessary. Speaking to the agents in the area though, there are hundreds of investors from interstate (especially WA atm) who are buying sight unseen in the area, a good agent you can trust up there should be enough.
- i basically lose the first home buyers grant if i do this because i wont be living there, bad idea ?
I think there may be a way for you still to keep it, but I'm not sure about this. Someone here will know. (I didn't get to use it myself )
- what would you do in my situation
I would definitely get into RE, whether it's in Adelaide or where ever! You've made the right decision, but as I mentioned earlier, don't make yourself uncomfortable day to day, if the figures stack up better to only spend $150k instead of $250k - then be strict with yourself. Just because the bank will lend you $250k - doesn' mean you have to take it
- wheres a good place to look for propery, realestate.com.au can i get books in the gold coast which have south aus property listed in them. if so where ?
See above. Not sure about the book thing, but local brokers would probably be able to email/fax you more details on any properties you like too. Or even register your interest with them and tell them what you're looking for, and they can get back to you (although be careful, as a lot of the RE up there are a bit slack at the moment because there are soooo many buyers).
thanks
