Help in buying my first property!

[beefz]

Hello everyone,

I'm a noob at all this but here goes. I would like some tips and hints or even what you might do if you were in my situation. Any ideas would be greatly appreciated.

I want to buy a property, i don't no if i should buy a PPOR or an IP, and what the best type of loan for my circumstances is IO or P&I and how much i should/could borrow safely with rates at around 9-10%

Alittle info about me to help you out! I'm 26, I live on the south coast of NSW, i have a stable job getting 50-60k a year.

I have 50k saved and can get the 7k government FHOG and another 10k FHOG through my job and there is no stamp duty. I can live off about $500 a fortnight give or take alittle, I'm debt free, no CC or car loan.

My father is a builder and i have alittle bit of experience in the building field with doing labouring for afew years so any renovations i think could be done relatively cheap.

My thoughts are that i should buy a PPOR to utilise all the FHOG i can get live in it for 6-12 months while renovating it alittle bit and maybe trying to get a workmate to move in with me. Then move out and rent while having that rented out. I don't want a loan for more then 300k but that's up to debate as i'm not really 100% sure how much i could borrow safely, i have used them bank calculators but they dont seem to factor in bills and what not.

Thanks alot for reading, and any tips and hints will be much appreciated.

Cheers.

 

[Rolf Latham]

Hi

A little confusion there for you, its not easy.

Sounds like u work for the Navy.

Approx how much a week or fortnight are you saving at the moment ?

ta
rolf

 

[Investor78]

Hi Beefz,

I think what you are suggesting is a good idea because you only get that one opportunity to claim the FHOG and no stamp duty.

My first property was the same situation. I bought it to live in, got the FHOG and stamp duty exemption and then lived there for about 15 months with a friend moving in for most of that time and paying me board.

I then got a different job in another city and moved away and rented out the house. However, it was negatively geared and had little equity so I had to wait for a few years before I could borrow against it for further investing.

At least you will be looking to buy a property that will be a good investment after you decide to move out of it.

The main downside to this strategy is that your local area may not be a good one for short-term capital growth in investment property. So because you are tied to that area, you may not be able to buy the best IP that you can so it is a compromise.

However, when you think about it, getting the FHOG and stamp duty exemption may save you around $20k all up which is like gaining instant equity.

Another thing to consider is, if you buy a cheaper property such as a 2BR apartment, you may have enough left over out of your $50k savings to buy a 2nd property not long after (assuming you pay only 5% deposit on the first one).

Good luck.

 

[ZEUSvsHADES]

Hi Beefz,

I think what you are suggesting is a good idea because you only get that one opportunity to claim the FHOG and no stamp duty.

not sure about all of australia but i think it would be the same in all states, fhog is just that, its for first home owners.
if you buy an investment property its not a home its an investment, so later down the track when you decide to buy a place to live in you can still claim the FHOG

call up a broker and have one come to you to talk money, the ones i use are free and obligation free, and have helped me get through some sticky situations

make sure you get figures if you were to be purchasing an IP or PPOR

once you have a confirmed borrowing capacity then i would think would be the time to start discussing possibilities

 

[BV]

beefz

There are plenty in your price range
What do you think of these?

http://www.realestate.com.au/property-house-nsw-north+nowra-107407178
http://www.realestate.com.au/property-house-nsw-north+nowra-107419231
http://www.realestate.com.au/property-house-nsw-north+nowra-107064356