Hi all,
Yet another needy first home buyer looking for advice from all the competent property investors out there! I'm impressed after reading so many threads that people give so much support and advice - the property veterans are to be commended!
Attempting brevity, here's my situation -
- Looking for an owner occupied property first (After talking to mortgage brokers, accountant etc decided this is the right place to start - would move on to IP's second).
- Very attached to the Northern Beaches area
- Have a $185k deposit ready after 4 years of steady saving, and $150k combined income
- Currently renting at a rediculous $460p/wk
- An ultimate goal of owning a house on the beaches (room for husbands bonsai collection, dog, future offspring.
Trying to decide between three options -
1. Buy the house now
This would require a large loan ($500k +), & would only be afforded if the property included a granny flat for income and we'd still be stretched and renno costs would be unknown. But we would have some income and the land value in the property.
2. Keep renting & saving hard for another year or 2
We're currently earning $1000 a month interest - & I personally feel property values in the area won't dramatically increase in value over this time. I'm noticing many properties taking a long time to sell, and 'vendor must sell' notices. My feeling is with more rate rises there'll be more available in the next year or so & that there's no need to rush. For these two options - we'd hope like hell we could afford an IP a few years down the track.
3. Buy a Nthn Beaches unit
Approx $450k. We wouldn't put down all deposit, could maintain healthy offset account, would not pay any stamp duty - saving about $25k, and repayments would only be $150p/wk more than current rent. Then buy an IP soon after, and hope that in the next few years we are in a better position to buy a house. The down side is I worry that units don't have good capital growth to count on (and there's so much stock on the beaches).
I know this is simplistic, but would really appreciate any comments. Thanks so much!
Kind regards,
Em
Yet another needy first home buyer looking for advice from all the competent property investors out there! I'm impressed after reading so many threads that people give so much support and advice - the property veterans are to be commended!
Attempting brevity, here's my situation -
- Looking for an owner occupied property first (After talking to mortgage brokers, accountant etc decided this is the right place to start - would move on to IP's second).
- Very attached to the Northern Beaches area
- Have a $185k deposit ready after 4 years of steady saving, and $150k combined income
- Currently renting at a rediculous $460p/wk
- An ultimate goal of owning a house on the beaches (room for husbands bonsai collection, dog, future offspring.
Trying to decide between three options -
1. Buy the house now
This would require a large loan ($500k +), & would only be afforded if the property included a granny flat for income and we'd still be stretched and renno costs would be unknown. But we would have some income and the land value in the property.
2. Keep renting & saving hard for another year or 2
We're currently earning $1000 a month interest - & I personally feel property values in the area won't dramatically increase in value over this time. I'm noticing many properties taking a long time to sell, and 'vendor must sell' notices. My feeling is with more rate rises there'll be more available in the next year or so & that there's no need to rush. For these two options - we'd hope like hell we could afford an IP a few years down the track.
3. Buy a Nthn Beaches unit
Approx $450k. We wouldn't put down all deposit, could maintain healthy offset account, would not pay any stamp duty - saving about $25k, and repayments would only be $150p/wk more than current rent. Then buy an IP soon after, and hope that in the next few years we are in a better position to buy a house. The down side is I worry that units don't have good capital growth to count on (and there's so much stock on the beaches).
I know this is simplistic, but would really appreciate any comments. Thanks so much!
Kind regards,
Em