I read the term ?analysis paralysis? on here somewhere on here the other day and seemed pretty apt for where my head is at right now.
I'm a complete novice in this area, although i've been reading as much as I can i'm at the point where I could do with some independent advise in order to gain some clarity around my options.
The story:
My partner and I rent in inner north Brisbane, I?m a full-time employee and am building up my branding /design consultancy on the side (with a view to eventually make it my primary source of income). My partner is 1 year self employed.
1 half of our rental property is solely dedicated to her business which we plan to expand (new premises) early to mid 2016
Because of her self employment status we?re looking to do our first purchase based upon my income and my savings only.
Neither of us have purchased property before. We do not share bank accounts
Savings - 35k
Income - 64k net
Debt - 0
A broker has advised that my with my salary i can purchase up to 430k
and recently they proposed the idea of potentially using using a parental guarantee for the 60% deposit, meaning no money down for me - allowing savings to either go towards the development of the business or towards a 2nd IP. Unfortunately the in-laws are in a phase of consolidating and paying down some debt on their own IPs so its probably back to Plan A.
Plan A:
I've toyed with the idea of coming to outer Brisbane suburbs but feel i don't have enough to play with yet so I like inner Ipswich (inc. coalfalls, woodend, w ipswich) for 10 year growth plus 5.5+ yield
Purchase Price $300k
Deposit $22k
LMI $6600
LVI 92%
Loan $284k
rate 4.69%
stamp duty $8925
Rent $16,640 pa
Rates $1200pa
PM $1300pa (?)
I have two trains of thought that are hampering me: Buying as PPOR and using the first home concession to save me stamp duty and recouping some income through Air BnB on the weekends whilst working on and staying in the property a few nights a week to make improvements. It would also mean I retain more of my savings for future use. plus save 6 months PM fees
However 6months rent = the price of stamp duty anyway and is less hassle.
So i?m wondering what people think of this - am i on the right track? Should I consider different options. Am I missing something.
We're not spenders and we have no debt, but beyond sticking money in a high interest account we haven't been very financially astute to this point.
We're not looking for an easy out, we just want our money to work as hard as we do (just smarter!).
If it helps, aside from the businesses our goal would be to buy land + house or build a PPOR in the Samsonvale, Dayboro belt within 4-5years.
Thanks in advance to anyone who reads this.
I'm a complete novice in this area, although i've been reading as much as I can i'm at the point where I could do with some independent advise in order to gain some clarity around my options.
The story:
My partner and I rent in inner north Brisbane, I?m a full-time employee and am building up my branding /design consultancy on the side (with a view to eventually make it my primary source of income). My partner is 1 year self employed.
1 half of our rental property is solely dedicated to her business which we plan to expand (new premises) early to mid 2016
Because of her self employment status we?re looking to do our first purchase based upon my income and my savings only.
Neither of us have purchased property before. We do not share bank accounts
Savings - 35k
Income - 64k net
Debt - 0
A broker has advised that my with my salary i can purchase up to 430k
and recently they proposed the idea of potentially using using a parental guarantee for the 60% deposit, meaning no money down for me - allowing savings to either go towards the development of the business or towards a 2nd IP. Unfortunately the in-laws are in a phase of consolidating and paying down some debt on their own IPs so its probably back to Plan A.
Plan A:
I've toyed with the idea of coming to outer Brisbane suburbs but feel i don't have enough to play with yet so I like inner Ipswich (inc. coalfalls, woodend, w ipswich) for 10 year growth plus 5.5+ yield
Purchase Price $300k
Deposit $22k
LMI $6600
LVI 92%
Loan $284k
rate 4.69%
stamp duty $8925
Rent $16,640 pa
Rates $1200pa
PM $1300pa (?)
I have two trains of thought that are hampering me: Buying as PPOR and using the first home concession to save me stamp duty and recouping some income through Air BnB on the weekends whilst working on and staying in the property a few nights a week to make improvements. It would also mean I retain more of my savings for future use. plus save 6 months PM fees
However 6months rent = the price of stamp duty anyway and is less hassle.
So i?m wondering what people think of this - am i on the right track? Should I consider different options. Am I missing something.
We're not spenders and we have no debt, but beyond sticking money in a high interest account we haven't been very financially astute to this point.
We're not looking for an easy out, we just want our money to work as hard as we do (just smarter!).
If it helps, aside from the businesses our goal would be to buy land + house or build a PPOR in the Samsonvale, Dayboro belt within 4-5years.
Thanks in advance to anyone who reads this.