Where to buy First House in Victoria?

D

DreamzUnlimited

Hi all :

I am a first time investor aged 26...just exploring different opportunities in terms of investment. My savings is around 10K and I am on 49K PA. I need information/suggestion from experienced investors in this forum about the following -

1. What are the suburbs in VIC where I can invest for a house at present keeping in mind the long term future growth. I am mainly considering this as an IP but not a house for myself. In future I want to buy my own house too.

2. It would be great if someone can mention few good mortgage brokers in Victoria around Melbourne.

Thanks and regards,

Anindya
 
Hello

Hi Anindya

There are a Zillion posts on the same subject and most of them recent, Im sure if you do a search u will definately come up with some answers.
Cheers
 
Last edited:
Hi there:

Thanks for your reply. Well I know that. I actually wanted few more suggestion/info based on my background and situation. That's all. Also I think a new year feedback on different suburbs would help other people too :).

Regards,

Anindya
 
alexlee said:
First step: find out how much you can borrow. Your budget will largely determine where to buy.
Alex
Click to expand...

Added to this, you may have to do a little more savings. A deposit of $10k is a very small figure to start from & with it not being your PPOR, you will have to come up with Stamp Duty & Legals.

I'd suggest a budget & a savings plan could well be in order.
 
Hi life_is_wealth,

At a very quick glance, you can afford to purchase something worth about $125,000 based on the deposit you've got available. If you were to buy with the first home owners grant, this would increase to around $250,000.

This is based soley on your cash available, contributing towards the minimum deposit and purchase costs. Your real borrowing capacity would need to be confirmed with a more detailed analysis, but this gives you a *very* rough starting point.
 
But remember you also have to service this thing. So with a loan of $250k, your interest payments would be around 20k a year. If you live in it, the interest and expenses aren't deductible. $50k salary (assuming package) your tax payable is about 9k.

That means you only have about 36k left a year after tax. 20k a year (and that's for interest only) would be 56% of your after tax pay. Can you live in 15k a year? And what will happen if something needs fixing?
Alex
 
I would spend the 250k

Live in the property for 6 months and scrounge my way through it however i can.

After that move out and rent it out to claim the tax benefits. You will really need to look hard to find something but i think you can do it. Once you have your first property it will be a bit easier going forward.
 
Alex raises some good points. If the circumstances warented it, I'd go for the higher end as well and live in the property for 6 months to qualify for the FHOG. To help with the cashflow, I'd rent any spare rooms.

Realistically though, you do need to speak with myself or another broker. The estimates I gave earlier are based on very limited information.
 
life_is_wealth said:
1. What are the suburbs in VIC where I can invest for a house at present keeping in mind the long term future growth. I am mainly considering this as an IP but not a house for myself. In future I want to buy my own house too.

Anindya
Click to expand...

Have a look at the Melton area, there is a thread here about the bypass and how it will be a great thing. I think you can still get a house there for about $200,000. The bypass will Save heaps of time getting to Melbourne.
 
Thanks heaps guyz for your inputs. I would soon be in touch with one of the MBs .... just to get started.

However just wondering whats the deal with first living in the house and then renting it? can't I rent it from the beginning and claim Tax benefits? I am already living in a rented place and wanna continue with that, unless other issues are there with my first IP.

looking forward for your replies ......
 
Hello Life is Wealth

Of course you can rent it out straight away however you wont be able to access the first home buyers grant if you do this.

You need to live in the house for 6 months to be eligible for the FHBG.

In Victoria i think its about $12,000 though it changed last year just after we bought our house so i'm unsure.
 
life_is_wealth said:
However just wondering whats the deal with first living in the house and then renting it? can't I rent it from the beginning and claim Tax benefits? I am already living in a rented place and wanna continue with that, unless other issues are there with my first IP.
Click to expand...

If you live in it first, you can claim the FHOG and stamp duty exemptions. If you do not live in it first, you can't claim those for the purchase, and in your situation that is a lot of money. While you can 'save' the FHOG for later if you buy an IP, stamp duty exemptions may be lost.
Alex
 
One of the limiting factors is your cash available, as you do have to pay purchase costs such as stamp duties. By applying for the First Home Owners Grant (FHOG), you get an extra $10,000 in Victoria, which gives you the cash to be able to purchase a more expensive property (as the stamp duties are higher).

The catch with applying for the FHOG is that you must live in the property for at least 6 months, within 12 months of purchasing it.
 
bailz66 said:
Hello Life is Wealth

Of course you can rent it out straight away however you wont be able to access the first home buyers grant if you do this.

You need to live in the house for 6 months to be eligible for the FHBG.

In Victoria i think its about $12,000 though it changed last year just after we bought our house so i'm unsure.
Click to expand...

$7k +$3k for existing properties
 
in victoria the FHBG is currently $10k if you are purchasing an established home. i believe it might be about 14k? if you build a new home
 
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