Straight to the nuts and bolts. My partner and I are looking at buying in Melbourne and have been looking for 9 months. We?ve got about 100k saved, no debt and in mid-range tier jobs.
Like a lot of other FHB we have steadily watched with dismay as we?ve seen properties got our heart set on slowly move further and further out of our grasp.
We?ve got a budget of ideally up to 650k (but approved for more), and aiming for something that?s within an 8-10km range of the CBD. Moving past that range isn?t an option, as we?d rather just move city or save up more.
I?ve wrestled with the fact that it?s a case of either
a) taking the plunge, going above our limit or
b) or riding this cycle out, saving more and wait for slight downturn or stabilization.
I should clarify that going above our limit means to our upper approval, with lenders mortgage insurance this ends up leaving us exposed to mortgage stress once rates rise.
Recently, we?ve had a friend who?s moving and selling their 2-bdr apartment in Coburg. The cost of this is significantly lower than houses we've been looking at (480k compared to 650k), the place is quite nice and close to transport and shops and we?ve been tempting to make an offer. We realise there will be less capital growth, but will give us a chance to build equity (we?d still be making repayments of a 650k house, just on a 15-year mortgage amortization).
I prefer to notion of a house, with its own title, ability to modify, add value and larger space ? but through going to auctions and inspections every weekend observed we can?t afford any that fit the bill.
The rundown ones get snapped up by investors and the decent ones sell 120-200k+ over their reserves.
The unit then becomes a consideration but I don?t want let the fear of missing out drive such a decision, I?m also concerned that if the market were to take a dive we?d be stuck in the apartment for a long to ride out the correction.
Faced with these options, would it be wiser to save more and aim for a house, with more size and it?s own title? Or live in a unit with lower interest repayments and build equity to upgrade later?
Like a lot of other FHB we have steadily watched with dismay as we?ve seen properties got our heart set on slowly move further and further out of our grasp.
We?ve got a budget of ideally up to 650k (but approved for more), and aiming for something that?s within an 8-10km range of the CBD. Moving past that range isn?t an option, as we?d rather just move city or save up more.
I?ve wrestled with the fact that it?s a case of either
a) taking the plunge, going above our limit or
b) or riding this cycle out, saving more and wait for slight downturn or stabilization.
I should clarify that going above our limit means to our upper approval, with lenders mortgage insurance this ends up leaving us exposed to mortgage stress once rates rise.
Recently, we?ve had a friend who?s moving and selling their 2-bdr apartment in Coburg. The cost of this is significantly lower than houses we've been looking at (480k compared to 650k), the place is quite nice and close to transport and shops and we?ve been tempting to make an offer. We realise there will be less capital growth, but will give us a chance to build equity (we?d still be making repayments of a 650k house, just on a 15-year mortgage amortization).
I prefer to notion of a house, with its own title, ability to modify, add value and larger space ? but through going to auctions and inspections every weekend observed we can?t afford any that fit the bill.
The rundown ones get snapped up by investors and the decent ones sell 120-200k+ over their reserves.
The unit then becomes a consideration but I don?t want let the fear of missing out drive such a decision, I?m also concerned that if the market were to take a dive we?d be stuck in the apartment for a long to ride out the correction.
Faced with these options, would it be wiser to save more and aim for a house, with more size and it?s own title? Or live in a unit with lower interest repayments and build equity to upgrade later?
