Hi
How do you know (or at least feel confident) that you’ve made the right decision when you are buying a property (particularly your first property)?
After considering all of my options for my first purchase (and trying to manage my fears about about getting into debt with a mortgage!), I've decided to take what I think is a ‘low risk’ option that will suit my circumstances. I’ve mentioned my circumstances in another post, but basically I’m a first time buyer, relatively new to Brisbane, single income (approx. $95K pa) with a low deposit and wanting to take that first step onto the property ladder. After weighing everything up, I’ve finally realised I can’t afford my ideal property right now (which would be a house rather than townhouse or unit), but have decided that I need to start small and hopefully build up to buying a house in a few years’ time (and keeping this first purchase as an investment property).
So, I have found what I think is a good option for me, and have put in an EOI. I felt confident when I submitted the EOI that this was the right decision – but I’m now second guessing myself, as despite all the hours of reading and research I’ve done, I still feel like a total novice and like I don’t know enough! So before it goes any further (I haven’t yet heard back or received a contract), I’d really appreciate thoughts on this, particularly if there is something I’ve not thought or should be considering:
• The property is a new build 3 b/r townhouse in Richlands (not yet complete, but will be within a few months)
• Price is low $300s, which is considerably cheaper than the majority of other ‘new build townhouses/units’ I have found in the Brisbane area that meet my criteria and are within an acceptable commuting distance to the CBD
• Developer is a well established company that has completed many other developments and the quality looks fine to me (its not designer high end obviously, but it’s not at the bottom end of the scale either!)
• I can therefore take advantage of the FOHG of $15,000 which significantly helps as I only have about a $20K deposit
• My mortgage repayments will therefore be reasonable (equal or less than my current rental payments) and my total mortgage under the $300K mark, which makes me feel more comfortable in terms of ‘doing it alone’ and not getting into financial difficulty
• It also means that I can put away a reasonable amount into savings each fortnight, in the hopes of either making extra mortgage repayments or saving for a deposit for a second property
• The estimated rental returns) are between $350-$370 pw (although the documentation shows this assessment was done in mid 2012)
• Body corporate fees are reasonable
• The property is within walking distance to the train station (and its 30 minutes train journey into the city)
• Richlands looks to be an area of focus for Brisbane City Council and I’ve looked at the neighbourhood plan for the suburb. Also, there is a new supermarket etc, and what I’ve read seems to indicate that Richlands is an area that is planned for growth
What are your thoughts on this as an option? Is there anything I haven’t considered? And would this be considered a good investment in the longer term (ie when I am able to move on and buy a second property). Is the cost vs potential rent return ratio about right (I’m not sure how to even assess that). I’ve looked at other townhouses and what they have sold for in the suburb and am confused, as there is currently one being advertised at $249K whilst others are up to the $370K mark, so quite a big price range (and I can’t work out why, as the quality and differences between them don’t look that much different at first glance).
Sorry for all the basic questions, but I have no one else to ask, particularly in terms of the Brisbane market. I do feel like this is the best option for me, but am not sure whether I am missing something. Interestingly, I attempted to get financial advice this week (to try and give me a long term strategy and some assurance that I’m doing the right thing) – the advice I was given was pretty much told to go home and live with my parents for a while, save more of a deposit, then buy a house and stay there for the rest of my life and aim to have it paid off by the time I retire (and that’s it). Considering I went in asking for a strategy to try and be more financially savvy, enter the property investment market, and to be in a position where I can help my mother financially when she retires (and obviously be comfortable myself when I retire which is a long way off yet!), I walked out of there feeling pretty disillusioned and annoyed at having wasted $$$$ in advice that didn’t answer my questions or even suit my circumstances! (I’m so grateful therefore that I’ve found this forum which is fantastic for sharing advice and information!)
Sorry for the super long post…. Thanks for reading , I’d really appreciate any comments, feedback, suggestions?!
How do you know (or at least feel confident) that you’ve made the right decision when you are buying a property (particularly your first property)?
After considering all of my options for my first purchase (and trying to manage my fears about about getting into debt with a mortgage!), I've decided to take what I think is a ‘low risk’ option that will suit my circumstances. I’ve mentioned my circumstances in another post, but basically I’m a first time buyer, relatively new to Brisbane, single income (approx. $95K pa) with a low deposit and wanting to take that first step onto the property ladder. After weighing everything up, I’ve finally realised I can’t afford my ideal property right now (which would be a house rather than townhouse or unit), but have decided that I need to start small and hopefully build up to buying a house in a few years’ time (and keeping this first purchase as an investment property).
So, I have found what I think is a good option for me, and have put in an EOI. I felt confident when I submitted the EOI that this was the right decision – but I’m now second guessing myself, as despite all the hours of reading and research I’ve done, I still feel like a total novice and like I don’t know enough! So before it goes any further (I haven’t yet heard back or received a contract), I’d really appreciate thoughts on this, particularly if there is something I’ve not thought or should be considering:
• The property is a new build 3 b/r townhouse in Richlands (not yet complete, but will be within a few months)
• Price is low $300s, which is considerably cheaper than the majority of other ‘new build townhouses/units’ I have found in the Brisbane area that meet my criteria and are within an acceptable commuting distance to the CBD
• Developer is a well established company that has completed many other developments and the quality looks fine to me (its not designer high end obviously, but it’s not at the bottom end of the scale either!)
• I can therefore take advantage of the FOHG of $15,000 which significantly helps as I only have about a $20K deposit
• My mortgage repayments will therefore be reasonable (equal or less than my current rental payments) and my total mortgage under the $300K mark, which makes me feel more comfortable in terms of ‘doing it alone’ and not getting into financial difficulty
• It also means that I can put away a reasonable amount into savings each fortnight, in the hopes of either making extra mortgage repayments or saving for a deposit for a second property
• The estimated rental returns) are between $350-$370 pw (although the documentation shows this assessment was done in mid 2012)
• Body corporate fees are reasonable
• The property is within walking distance to the train station (and its 30 minutes train journey into the city)
• Richlands looks to be an area of focus for Brisbane City Council and I’ve looked at the neighbourhood plan for the suburb. Also, there is a new supermarket etc, and what I’ve read seems to indicate that Richlands is an area that is planned for growth
What are your thoughts on this as an option? Is there anything I haven’t considered? And would this be considered a good investment in the longer term (ie when I am able to move on and buy a second property). Is the cost vs potential rent return ratio about right (I’m not sure how to even assess that). I’ve looked at other townhouses and what they have sold for in the suburb and am confused, as there is currently one being advertised at $249K whilst others are up to the $370K mark, so quite a big price range (and I can’t work out why, as the quality and differences between them don’t look that much different at first glance).
Sorry for all the basic questions, but I have no one else to ask, particularly in terms of the Brisbane market. I do feel like this is the best option for me, but am not sure whether I am missing something. Interestingly, I attempted to get financial advice this week (to try and give me a long term strategy and some assurance that I’m doing the right thing) – the advice I was given was pretty much told to go home and live with my parents for a while, save more of a deposit, then buy a house and stay there for the rest of my life and aim to have it paid off by the time I retire (and that’s it). Considering I went in asking for a strategy to try and be more financially savvy, enter the property investment market, and to be in a position where I can help my mother financially when she retires (and obviously be comfortable myself when I retire which is a long way off yet!), I walked out of there feeling pretty disillusioned and annoyed at having wasted $$$$ in advice that didn’t answer my questions or even suit my circumstances! (I’m so grateful therefore that I’ve found this forum which is fantastic for sharing advice and information!)
Sorry for the super long post…. Thanks for reading , I’d really appreciate any comments, feedback, suggestions?!
