Hi All,
As a FHB I signed a contract on a new 2 bedroom apartment in Westmead for 375k with a 10 day cooling off period in time for the 24k grant. Initially I was okay with the place until I found out the strata was around $745 pq. Although I was reluctant to get into it however the agent suggested that it is a blue chip property and will grow fast as well as rent out quick to the Westmead hospital staff due to the proximity.
The Bank I am going with has valued the property at 365k. The vendor is unwilling to negotiate. This means either I put in an extra 10k which I prefer not to and can't OR that I get a 92% of 365k loan from the Bank (potentially if they agree) and put in 15.2k from the pocket besides the 24k for the deposit. That blows out the LMI to 8k from 5k.
I live at home. I did my numbers and I figured that even if I rented out the property for the first 9 of the 12 month period (and then occupied it for 6 months) I would need to approximately put in $600 per month besides rent to cover off the strata, council rates, water rates and land lord's insurance.
Now my concern is that would that instead hinder my willingness to get more investment properties? If I pull out I feel sorry for the sales agent who has been more than helpful to us (believe me!) However on another hand I feel is it wiser to get say a 310k-330k old property in Giraween or Pendle Hill, have a smaller loan which when rented out is easier to pay off (though the prices may not rise as quickly as Westmead(?)) and hence be able to afford more IPs quicker than I would be able to with the current option with which I will have a 343k loan (after deposit) plus the 3k strata per annum plus other costs?
I know it may seem silly and that I was stupid, but I am new to all this. I am willing to lose a $1k deposit on a property than be stuck and hating it and wanting to get rid of it. I haven't had the right gut feeling but my mum feels that the Westmead location is just perfect. And I guess when you tell people they look favourably upon a IP/first home in Westmead as opposed to Pendle Hill or Girraween.
Will appreciate your thoughts!
As a FHB I signed a contract on a new 2 bedroom apartment in Westmead for 375k with a 10 day cooling off period in time for the 24k grant. Initially I was okay with the place until I found out the strata was around $745 pq. Although I was reluctant to get into it however the agent suggested that it is a blue chip property and will grow fast as well as rent out quick to the Westmead hospital staff due to the proximity.
The Bank I am going with has valued the property at 365k. The vendor is unwilling to negotiate. This means either I put in an extra 10k which I prefer not to and can't OR that I get a 92% of 365k loan from the Bank (potentially if they agree) and put in 15.2k from the pocket besides the 24k for the deposit. That blows out the LMI to 8k from 5k.
I live at home. I did my numbers and I figured that even if I rented out the property for the first 9 of the 12 month period (and then occupied it for 6 months) I would need to approximately put in $600 per month besides rent to cover off the strata, council rates, water rates and land lord's insurance.
Now my concern is that would that instead hinder my willingness to get more investment properties? If I pull out I feel sorry for the sales agent who has been more than helpful to us (believe me!) However on another hand I feel is it wiser to get say a 310k-330k old property in Giraween or Pendle Hill, have a smaller loan which when rented out is easier to pay off (though the prices may not rise as quickly as Westmead(?)) and hence be able to afford more IPs quicker than I would be able to with the current option with which I will have a 343k loan (after deposit) plus the 3k strata per annum plus other costs?
I know it may seem silly and that I was stupid, but I am new to all this. I am willing to lose a $1k deposit on a property than be stuck and hating it and wanting to get rid of it. I haven't had the right gut feeling but my mum feels that the Westmead location is just perfect. And I guess when you tell people they look favourably upon a IP/first home in Westmead as opposed to Pendle Hill or Girraween.
Will appreciate your thoughts!