Gidday,firstly these are a great set of forums and are providing us with a wealth of information.
Given the high level of expertise on here, I figured I would post a summary of our situation and see what sort of ideas there are out there.
Current situation:
One income family: $130,000
One home husband/renovator.
3 girls
We are moving to Canberra during the Christmas period.
PPOR $400,000 with debt of $180,000 to become IP and leased for $15,600 pa. We have secured tenants with no PM. PPOR will become IP. Our preference is not to sell this place.
Assumptions:
Property is overpriced in Canberra.
Some suburbs will sustain CG growth.
Some suburbs will sustain CG losses.
There is a land shortage.
Interest rates will continue to rise.
Sydney will re-ignite and there will be some sort of flow on effect.
The federal gov't (either flavour) won't make huge changes to Public Service.
I don't like Canberra
I am relatively dogmatic about not paying any rent (sort of). Therefore we are looking to buy.
We are looking at around $400,000 for a 'dodgy' house in a good suburb. Read: somewhere where a finished/modern house could secure around $600,000. It is a big assumption, but from my calculations given $50,000 for renos then our costs (stamp duty, renos, mortgage costs, sale fees) to recoup would be around $100,000.
We would be moving to Canberra with a mind to move through a few PPOR's, upgrading each time. You can assume that we won't over capitalise in each case.
Another option we have is to buy land and build a new house, however as far as I can tell there is next to no affordable land in a suitable location which would make it financially viable.
We would also be looking to buy 1 or 2 IP's in the form of townhouses/units on both the south coast and the north coast with a budget of around $200,000 each.
Another option, that I am just starting to consider is (regardless of my feelings about it) is to rent for a few years and take out a margin loan for a $200,000 and just buy into the share market instead?
Any suggestions, any pitfalls?
Cheers and tia
Given the high level of expertise on here, I figured I would post a summary of our situation and see what sort of ideas there are out there.
Current situation:
One income family: $130,000
One home husband/renovator.
3 girls
We are moving to Canberra during the Christmas period.
PPOR $400,000 with debt of $180,000 to become IP and leased for $15,600 pa. We have secured tenants with no PM. PPOR will become IP. Our preference is not to sell this place.
Assumptions:
Property is overpriced in Canberra.
Some suburbs will sustain CG growth.
Some suburbs will sustain CG losses.
There is a land shortage.
Interest rates will continue to rise.
Sydney will re-ignite and there will be some sort of flow on effect.
The federal gov't (either flavour) won't make huge changes to Public Service.
I don't like Canberra
I am relatively dogmatic about not paying any rent (sort of). Therefore we are looking to buy.
We are looking at around $400,000 for a 'dodgy' house in a good suburb. Read: somewhere where a finished/modern house could secure around $600,000. It is a big assumption, but from my calculations given $50,000 for renos then our costs (stamp duty, renos, mortgage costs, sale fees) to recoup would be around $100,000.
We would be moving to Canberra with a mind to move through a few PPOR's, upgrading each time. You can assume that we won't over capitalise in each case.
Another option we have is to buy land and build a new house, however as far as I can tell there is next to no affordable land in a suitable location which would make it financially viable.
We would also be looking to buy 1 or 2 IP's in the form of townhouses/units on both the south coast and the north coast with a budget of around $200,000 each.
Another option, that I am just starting to consider is (regardless of my feelings about it) is to rent for a few years and take out a margin loan for a $200,000 and just buy into the share market instead?
Any suggestions, any pitfalls?
Cheers and tia
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