Hi everyone,
So I'm hoping there are a few people here on the forums that might be able to help out a very confused and frustrated property newbie?
My husband is in the Army and we current live in a Defence rental in Brisbane. We have one investment property in Chermside due to our PPOR being transferred to an IP after posting away and not living in it. (We purchased in 2007 - so almost no capital growth to date)
We are now considering getting a Defence Loan where we get between $300 - $400 per month towards our mortgage if we purchase the home in our current posting locality, and live there for 12 months. We can then move to another posting and still continue to receive the benefits for 20 years (I think?), and at that time we can also move back into a Defence Rental and receive subsided rent. (So double hit of benefits I'm thinking?) Eventually would love to come back to Brisbane (my home)
My issue is that we have two small children both in daycare and moving into the local school next year. My husband is being posted to Canberra in Jan-2014. I'm considering the option of purchasing a home now here in Brisbane now, in close proximity to my children's school and my work, however due to the DOHAS requirements I'll have to stay for 12 months, while my husband only has 7 months here in Brisbane before he moves. (He can live on base in Canberra) So we could go 'married separated' in terms of the army next year. (My job here in Brisbane is another consideration into going married separated)
So I'm looking at property options in the Enoggera area - and I've found a property that I think would suit our family in the short term (trying not to get emotionally attached) however I think we would have to pay $540k for a 3 bedroom house close to Enoggera. We can easily service the mortgage repayments as we both work full time (for now). It is currently being rented at $450 / week. Straight away I'm thinking that the rental return is too low. (Add into the mix in 2015 or 2016 I'd like to stop work for 12 months to have another child - so being able to make the mortgage repayments during that time is a big consideration)
But I've been told that the potential capital growth in this area makes this property something to consider?
I'm wondering if we should look further away from the city to get something with better rental return, however if my husband leaves to live in Canberra I'll potentially be a single full time working Mum for a period of time and the extra travel time to and from work and daycare-school drop off would be a struggle. (And the traffic is bad enough this close to the city!!!)
Or perhaps we should just forget about buying in Brisbane, and just buy something in Canberra in 1-2 years to avoid all this drama.(Depending on current baby status of course) Or even still - just buy an Investment Property somewhere outside of our posting location (Defence requirement or else we have to live in it)
So apologies for the big rambles... But if you've reached the end of this and still willing to offer some thoughts, I guess the big question is, 3 bedroom house in Enoggera area for $540k with $450 rental return - hit, or miss? (Should have just said that at the beginning I guess!)
Thanks!
So I'm hoping there are a few people here on the forums that might be able to help out a very confused and frustrated property newbie?
My husband is in the Army and we current live in a Defence rental in Brisbane. We have one investment property in Chermside due to our PPOR being transferred to an IP after posting away and not living in it. (We purchased in 2007 - so almost no capital growth to date)
We are now considering getting a Defence Loan where we get between $300 - $400 per month towards our mortgage if we purchase the home in our current posting locality, and live there for 12 months. We can then move to another posting and still continue to receive the benefits for 20 years (I think?), and at that time we can also move back into a Defence Rental and receive subsided rent. (So double hit of benefits I'm thinking?) Eventually would love to come back to Brisbane (my home)
My issue is that we have two small children both in daycare and moving into the local school next year. My husband is being posted to Canberra in Jan-2014. I'm considering the option of purchasing a home now here in Brisbane now, in close proximity to my children's school and my work, however due to the DOHAS requirements I'll have to stay for 12 months, while my husband only has 7 months here in Brisbane before he moves. (He can live on base in Canberra) So we could go 'married separated' in terms of the army next year. (My job here in Brisbane is another consideration into going married separated)
So I'm looking at property options in the Enoggera area - and I've found a property that I think would suit our family in the short term (trying not to get emotionally attached) however I think we would have to pay $540k for a 3 bedroom house close to Enoggera. We can easily service the mortgage repayments as we both work full time (for now). It is currently being rented at $450 / week. Straight away I'm thinking that the rental return is too low. (Add into the mix in 2015 or 2016 I'd like to stop work for 12 months to have another child - so being able to make the mortgage repayments during that time is a big consideration)
But I've been told that the potential capital growth in this area makes this property something to consider?
I'm wondering if we should look further away from the city to get something with better rental return, however if my husband leaves to live in Canberra I'll potentially be a single full time working Mum for a period of time and the extra travel time to and from work and daycare-school drop off would be a struggle. (And the traffic is bad enough this close to the city!!!)
Or perhaps we should just forget about buying in Brisbane, and just buy something in Canberra in 1-2 years to avoid all this drama.(Depending on current baby status of course) Or even still - just buy an Investment Property somewhere outside of our posting location (Defence requirement or else we have to live in it)
So apologies for the big rambles... But if you've reached the end of this and still willing to offer some thoughts, I guess the big question is, 3 bedroom house in Enoggera area for $540k with $450 rental return - hit, or miss? (Should have just said that at the beginning I guess!)
Thanks!