my offer is accepted but i have also found another house ??

[Tman]

Hi all,

The owner has accepted my offer at a very good location
in the suburb. However, I have also found second house with bigger house + land
that has just put on auction for the first week.


Now i am undecided between two houses

1) blue rippon location & close to train station but it is just a small brick veneer house without anything such as no garage, no built in wardrobe, only 1 toilet, no veranda at front and back

2) bigger house close to the train station ...ie same distance to the train station as the first house.
but it has bigger land 130sqm bigger + garage + carport + bigger house
+ veranda + front fence

the second house would cost me around 40-50k more than the first one

please give me your advise on which one i should chose and why

 

[wealth101]

Hi Tman,

If the 2nd one has BIGGER land + garage and you can afford it then go for it...as you wil have more growth. It may be dearer but as you say bigger house hence you would have more rent to offset the repayment.

The only concern I have is have you signed the contract on the 1st house? If you did you may have problem of backing out...

Thats my 2c

 

[Bayside]

Cooling off?

 

[Strannik]

if you really want to get out of 1st contract get your MB to fail it on finance (assuming you did put that clause in)

 

[Nathan]

buy both

 

[BV]

Tman

If it's an IP then I'd go for number 2
If it's a PPOR the word caution comes to mind.
Even $50K can make a big difference to the household budget so make sure you can afford the larger loan.

I personally don't like properties without a garage so I would only buy such a property if it was my first property and/or there was nothing else around.
Having said that, it depends on your budget.

With PPOR's I believe its very important to take small steps.
You could go for the smaller property and once you've paid off some of the loan, or your family got larger and need the space etc you then upgrade.

Cheers

 

[craigb]

have you put in a pre auction offer on the 2nd home? if not how do you know of the 40k diff?

 

[RumpledElf]

Don't go pulling out of the first one unless you are very much secured on the second one. You know, Murphy's law, someone else will snag the second one after you let the first one go and you have NO house.

You can always add verandahs and carports and stuff, right? Or is the first one really so small there's no room for them?

 

[stumunro]

just remember an extra 50k is a grand a week for a year!!

I know this is highly but I sometimes forget how much money I play with sometimes when buying houses.

P.s if you can afford it i would go the second property hands down Unless you think you can make the adjustments to the first one with less than 25k cash.

 

[Tman]

Thank you so much for all your reply

Nathan I have thought about buying both of them ..however, i can't afford for now

BV i have exactly same thinking process as yours. Even though it is not my first property but i still think it is better to get a small loan for now later on when i have more equity i always can upgrade.


Once again thanks for all tips on how to get out of the first property contract
you guys are very helpful

 

[BV]

Tman

Soon you will be going through the buyers remorse stage so consider this.

The 2nd property would cost you a lot more than $40 to $50K.
How do I know this?
From your description it will be very popular and at an auction all you need is 2 people bidding against each other and the price goes up.

Cheers

 

[jasper]

Do you think your just having a bit of cold feet over the first property? It sounds like you did your homework on it and are now trying to talk yourself out of it. If PPOR do you need the bigger house?? If IP what is the key demographic of the tenants in the area?? COnsider carefully and quickly. Hope you have a finance clause or still in cooling off or it's gonna cost you.
Good Luck