I've just bought my first house

[eggnog]

Well i've taken the plunge

After reading a lot, getting into the right mindset, saving like mad and waiting to graduate i have finally purchased my first property - ended up paying 382k.

http://www.realestate.com.au/cgi-bi...eader=&c=12989362&s=qld&snf=rbs&tm=1179996869


I'm not sure if I'm investing correctly (time will tell) but I have tried to copy what I have read both here and in books and magazines. I have gone 105% Other Peoples Money. I have taken a loan out with westpac at 85%LVR no LMI. For the rest and buying fees I have decided to do a redraw on my parents PPOR. This means that the money I have saved (~30k) can be used for other investments. Plan to get margin loan and buy high dividend shares to help service repayments. Then renovate later this year to build CG


Why I chose this property
Good growth potential. House structurally sound but can do with a reno to build CG. Within 10km of CBD. Close to Tafe, uni, schools. Main roads easily accessible. Halfway between Westfield Garden city and Westfield Carindale. Dept Housing selling old commision houses

http://www.reiq.com.au/BuySellRent/community_view.asp?suburb_id=47

and BCC has earmarked the logan, creek rd intersection as a new hub/precinct - hopefully my land can get rezoned in a few years to medium residential

http://www.brisbane.qld.gov.au/masterview/masterplan/enquirer/publishR.aspx?page=eplan



Well, there you go. The first and scariest step taken.

 

[BV]

CFP
Congratulations, on your purchase and for using OPM.
Is the redraw from your parents PPOR in your name
or are you going to be paying them interest?
Cheers

 

[Jacque]

Congratulations! The first one is so exciting

I'm just amazed at how much growth Brisvegas has had lately- the sub $300K market has really gone crazy lately from all the information I've heard.

 

[The Y-man]

Congratulations!

The Y-man

 

[paisneil]

Hi

Congratulations

Sunny

 

[sue78]

Congratulations!

That area has gone up so much already but it's such a great location that I'm sure there's room for more growth.

Did u look at Corinda? properties are being snapped up quickly there but it's similar price range. I think Mt Gravatt is a better area. Though Creek rd frustrates me.

 

[eggnog]

Thanks guys. My parents are doing the redraw and gifting it to me. I'll be paying all the redraw off.

And just for inspiration to those others out there who believe they can't buy properties. I am a recent graduate - early 20s , earning 40k on a temporary job so if I can do it then anyone can. I just had to spend a bit more time looking for a bank that would loan to me - I had to go to multiple bank branches before I found a manager willing to loan to me, foregoing the car to buy a house, and buying an IP first so the rent can help pay for the mortgage. All up I believe it will end up costing me ~$140pw at 105%LVR which I believe anybody can find.


Hehehehe. I just can't wait to see in a couple of years time where my friends are who bought their Aurions and Celicas. I've tried talking to them but they just can't see that for a 40k car they could put a deposit for a house that, unlike the car, appreciates in value.

 

[Jase H]

Well Done

Awesome start to your investing! Well done! I'm really impressed with your through research for your first IP and your discipline at not buying the car.

Sound balanced strategy i'd say and you'll do great.


Jase

 

[aim_higher]

Well done!

I spent some time with the agents around Mt Gravatt this morning - was quite brief though as they didn't have a great deal of stock on their books. What was there was in the early $400k's, so good buying!

Interestingly, rents are attracting $300-$350 per week, which is great for you.

 

[sailor]

Good on you. What a splendid start to your IP portfolio. Do keep us up to date with your renos.

 

[EstatePreneur]

Thanks guys. My parents are doing the redraw and gifting it to me. I'll be paying all the redraw off.

And just for inspiration to those others out there who believe they can't buy properties. I am a recent graduate - early 20s , earning 40k on a temporary job so if I can do it then anyone can. I just had to spend a bit more time looking for a bank that would loan to me - I had to go to multiple bank branches before I found a manager willing to loan to me, foregoing the car to buy a house, and buying an IP first so the rent can help pay for the mortgage. All up I believe it will end up costing me ~$140pw at 105%LVR which I believe anybody can find.


Hehehehe. I just can't wait to see in a couple of years time where my friends are who bought their Aurions and Celicas. I've tried talking to them but they just can't see that for a 40k car they could put a deposit for a house that, unlike the car, appreciates in value.

Now this is truly an inspiration for me.
But the difference is I'm only earning $20,000 per year, I guess I have to work harder and smarter

A big congratulation to you CashFlowPlus for taking that first step

 

[eggnog]

estate, if 40k got me a ~400k house then for 20k you should look at a 200k house. There are tones of them around ipswich and goodna, redbanks, bellbird, etc. And these suburbs, though a bit further out, are gonna boom in the next few years with the upgrade of the ipswich motorway, the development of the springfield rail and the numerous developments going on around the place (riverlinks, orion shopping centre, riverview business precinct).


And if the finance is a problem, try to get through Homeside lending. They are a division of National and are much more leniant in lending that the other banks. ie, until I found this 1 compasionate mortgage manager in westpac, none of the other banks except Homeside would lend to me because I was temporary.

 

[markpatric]

Congrats looks like you chose a good house in a good area, even looks to be partly renovated already!.
But regarding your $30,000 for "other" investments my advise would be to put it straight into a long term/high interest, but accessible bank account just in case you lose your temporary job!, or have unforseen tenant problems etc.
At least till you get a feel for what your position will be.

 

[tigerGT]

I bought the $40,000 cars when I was early 20's and Just left uni. Around 2 years later I sold up to buy my first IP and then 2 years after that (which is now) bought my 2nd IP. I am 27. Had I not bought the cars and bought a house i most probably would be better off now however I defintly do not regret buying the cars. It was something I had to go through and experience in order to move pass that. I now no longer have urges to own fast cars however had I not bought them first then I think it may have affected me in the long run. I know drive a 5k car and I am very happy. I have had my fun with cars.

With regards to your situation and your investment I must say congrats mate! Good buy and its awesome that you got in when you did. But I have to agree with previos poster who advised your better off dumping your 30k in an offsett of high interest account. I would say more safer and considering that its your first you dont want a unwanted occurence putting you off. Do not rush for second property. Once things are finalised here, renovated, rented and under control then you can start thinking about another IP. But none the less you have started young and thats awesome! congrats

Cheers

 

[DadOfSam]

Curious

Hi CFP,

wow, you've certainly gone after your goal. Congrats on having the guts to invest in your future at a time when some (most?) of your contemporaries are focusing on the short term. Your persistance has certainly paid off.

You mentioned you had to shop around for your mortgage, and sorry to pry, but do you feel that you were able to get a good deal from the bank? I'm assuming you went the interest only route in order to get a larger property (and maximise any potential future gains), but did you have to go the low/no doc mortgage route? The MB I met recently suggested this as an option for me, which I declined (mainly because my wife is due in August), but obviously this is an important option for those in temporary work/self employed like yourself.

Brisbane seems to be relatively good IMO - my brother just moved, and 5 different family friends have shifted to QLD in the last 2 years from Sydney (due to the local housing costs).

Honestly - good luck mate!

 

[eggnog]

The reason I had to shop around for a loan was because no-one would lend to me because I was a recent graduate, didn't have proper work history and was only temporary at my current position. Then I met a home loans manager at westpac who was an investor prior to moving to westpac 2 years ago. He understood my circumstance was not the norm and did not just put my details on a computer to determine if I should be granted a loan. He decided to lend to me because my current work was inline with my degree, that as a recent graduate if my temporary job fell through I most certainly could get another job quite easily, I had a good savings history and also a good casual working history at my uni library.

He was a great guy. He granted me a normal full doc loan at 85%LVR with no LMI - interest varying between 7.35% and 7.5% depending on what package I picked. Also of note, 2 weeks prior I saw a different westpac loans manager in a different suburb who rejected lending to me. Just shows how much percevirence can pay off.

Happy to answer any more Qs


CFP

 

[Crystalleez]

Congratulations Cashflowplus. You appear to be so calm regarding your purchase, I wish I could say the same for myself. Well done for getting in there. I wish you the best of luck. If nothing else is will be a tremendous learning curve right??

 

[WinstonWolfe]

Good on you CFP..... and good on the WBC loans officer.
that was big of him....

BTW, today's update on the Brissy market............

Many REAs are struggling to get listings.... Why?

the logic I got today is that many owners can't afford to upgrade, due to the latest mini boom, so they have to sit tight.

an interesting point I hadn't fully appreciated before.

Suppose the only guys that are tempted to sell are retirees prepared to move out of Brissy metro.

meanwhile investor interest continues to grow, as does fhb.

All we need now in Brissy metro is for a population cap due to lack of water, and Bingo.........after reading today's rainfall projections, seems we might actually get that pop cap....

 

[Don and Liz]

Well Done. The first one is the hardest