Where to buy in Melbourne at my budget?
- Thread starter LarryC
- Start date
Don't listen to these fools
Larry,
Firstly, grats on the savings to date and having the maturity to think long term.
Secondly, ignore those in here who hijacked your thread and answered everything but your question - this is simply them trying to stroke their egos (***** me how everyone is an expert on the Interweb).
Thirdly, I am no expert (about to buy my first IP and have spent ages researching). I earn considerably more than you do and my aim is to get a property that becomes borderline CF+ (but only after tax deductions). In other words I want the tax man to pay for some of the property.
I have originally looked at Melbourne metro areas and frankly, there are no CF+ areas that come to mind without getting extremely creative (keep in mind that in general property values will not do a big jump in value organically over the next few years - short of some external factor affecting an area positively, which would require a lot of knowledge, speculation or pure *** to get right).
So this automatically led me to the outer areas of Melb, there are a few suburbs around Geelong that can produce a close to CF+ IPs, but you will need to get creative. Carlton apartments are CF+, but they will traditionally be iffy on Cap Growth. I personally am leading towards buying an IP around the Latrobe Valley (cheap as chips properties so risk is low and they offer high rental yields so easy to be creative enough to make them CF+).
The above is more information than any of the other egos gave you. Go forth and coquer, good luck to you Sir!
Larry,
Firstly, grats on the savings to date and having the maturity to think long term.
Secondly, ignore those in here who hijacked your thread and answered everything but your question - this is simply them trying to stroke their egos (***** me how everyone is an expert on the Interweb).
Thirdly, I am no expert (about to buy my first IP and have spent ages researching). I earn considerably more than you do and my aim is to get a property that becomes borderline CF+ (but only after tax deductions). In other words I want the tax man to pay for some of the property.
I have originally looked at Melbourne metro areas and frankly, there are no CF+ areas that come to mind without getting extremely creative (keep in mind that in general property values will not do a big jump in value organically over the next few years - short of some external factor affecting an area positively, which would require a lot of knowledge, speculation or pure *** to get right).
So this automatically led me to the outer areas of Melb, there are a few suburbs around Geelong that can produce a close to CF+ IPs, but you will need to get creative. Carlton apartments are CF+, but they will traditionally be iffy on Cap Growth. I personally am leading towards buying an IP around the Latrobe Valley (cheap as chips properties so risk is low and they offer high rental yields so easy to be creative enough to make them CF+).
The above is more information than any of the other egos gave you. Go forth and coquer, good luck to you Sir!
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Yeh I think the only cash flow positive area within 150 km of Melbourne would be morewell. Throw 70k at as many houses as you can. One of them will take it. Patch it up and should rent for 140- 160
Only other cf positive that come to mind are warracknabeal dimboola sea lake. Maybe warrnambool but don't quote me on that one.
Only other cf positive that come to mind are warracknabeal dimboola sea lake. Maybe warrnambool but don't quote me on that one.
No where in metropolitan to be honest.
Have you seen the foreclosures, oversupply, glut of places at that price range?
Go with rural probably, though I know nothing about it.
PS: good job saving up 72k
Have you seen the foreclosures, oversupply, glut of places at that price range?
Go with rural probably, though I know nothing about it.
PS: good job saving up 72k
Hi Everyone
Just wanted to clear a few doubts. Based on my $72K savings and the $370K borrowing limit from ANZ (I’ve been lazy; I haven’t gone to see financial brokers yet to check maximum borrowing limit), I can only purchase an investment property (PI) worth up to $420K?
Tell me if my math is Correct/Incorrect
Let’s say for argument sake I did purchase an investment property worth $420K in today’s market. An online stamp duty calculator roughly gives me $23K as stamp duty for a property worth $420K.
72K – 23K = 49K
I can use the remaining 49K for my 10% deposit on the house and borrow 370K from ANZ (Borrowing close to 90%).
Only way to buy a property investment worth more than $420K is to find a financial lender (via broker like Aaron) who will allow me to borrow more or I just have to save more to make the difference.
Just wanted to clear a few doubts. Based on my $72K savings and the $370K borrowing limit from ANZ (I’ve been lazy; I haven’t gone to see financial brokers yet to check maximum borrowing limit), I can only purchase an investment property (PI) worth up to $420K?
Tell me if my math is Correct/Incorrect
Let’s say for argument sake I did purchase an investment property worth $420K in today’s market. An online stamp duty calculator roughly gives me $23K as stamp duty for a property worth $420K.
72K – 23K = 49K
I can use the remaining 49K for my 10% deposit on the house and borrow 370K from ANZ (Borrowing close to 90%).
Only way to buy a property investment worth more than $420K is to find a financial lender (via broker like Aaron) who will allow me to borrow more or I just have to save more to make the difference.
That's right.
Go to a broker. The broker will have a better idea of which bank is better so you don't waste your time scouting yourself.
Other thing is earn more/guarantee/bigger deposit.
Go to a broker. The broker will have a better idea of which bank is better so you don't waste your time scouting yourself.
Other thing is earn more/guarantee/bigger deposit.
I'd suggest you not to buy an IP that is over $400k. You will use all your savings and have a huge loan to bear. Considering your income is $42k gross and a $400k loan requires around $2.6k repayment a month. Of course, you will have rental income, but in my opinion, the risk is just a bit too high.
Something around $300k may suit you better.
Just my conservative sense.
Good luck!
Something around $300k may suit you better.
Just my conservative sense.
Good luck!
Hi Candyinvest
Thanks for the feedback. Yes I am also concerned a bit about going and borrowing anything more than $350K from a lender. However I would rather throw a bit more money in an area that has good capital growth overtime, compared to paying peanuts to a S***box and struggling to find tenants and see that the overall capital growth is weak. Again I will be mooching off my parents for the next 4-5 years (They are not getting rid of me that easily. Life's too good here
). I am happy to contribute most of what I earn (monthly) to pay the rest of the interest off.Just wanted to throw this question out by the way.
If your specifically looking for a unit with 2 bedrooms, 1 bathroom and 1 garage (Not Carport).
What areas will you be looking at for the following price bracket?
300k - 350K Price Bracket
350k - 420K Price Bracket
I'm not after positive cashflow anymore. I understand now you won't find such a thing around Melbourne. Just want to set myself up where the tenant pays at least 1/2 of the interest and I'll pay the rest.
General rule of thumb is start near the CBD and work your way out until you find something in your price range. For apartments I would always look in the Eastern suburbs that don't have lots of development of similar apartments in the pipeline as this usually puts a damper on prices. This would definitely remove places like Richmond/South Yarra on my list because they have been built to the absolute maximum.
Thanks Aaron. Makes sense
Looking for something with land though. Is there revalue in apartments close to the city?
Sure but I think you have to look for something with a distinguishing factor. It can be something as simple as having 2 car parks in an inner-city area - this adds lots of resale value and ease of sale too.
Doncaster has a couple of apartment projects going. But they are a bit pricey.
A very popular area esp with the train line possibility...
A very popular area esp with the train line possibility...
The trainline speculation for Doncaster is worse than the on-off saga of Epping-Hills trainline in Sydney.. been talked about for at least 70 years!
doncaster projects are mainly overpriced
And could easily take another 70 years. I certainly wouldn't let it be a factor (even the smallest of factors) in investing in the area.
Sorry for bumping this old thread.
Can anyone recommend me a good solicitor/conveyancer in South-East Melbourne. I'm getting a soft-copy of section 32 soon and require a solicitor to go through it with me and add things like pest and building inspection.
Any recommendations?
Edit: Would also like to add. I also need recommendations for a Building and Pest Inspector.
Can anyone recommend me a good solicitor/conveyancer in South-East Melbourne. I'm getting a soft-copy of section 32 soon and require a solicitor to go through it with me and add things like pest and building inspection.
Any recommendations?
Edit: Would also like to add. I also need recommendations for a Building and Pest Inspector.
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Trusted Conveyancing:
Sergeants Port Phillip
Lexus Conveyancing (city)
Building Inspection / Depreciation:
TSL
Houspect
Sergeants Port Phillip
Lexus Conveyancing (city)
Building Inspection / Depreciation:
TSL
Houspect
Thanks Aaron. Makes sense
Looking for something with land though. Is there revalue in apartments close to the city?
Hey Larry,
DEFINATELY revalue in apts close to city, but keep to buildings of less than 15 on a leafy street. Stay away from the behemoths on st kilda rd, docklands etc as new towers are being built every day making yours look old. Keep an eye on body corp fees though as these can quickly turn +ve to -ve.
Scarcity + Location = Demand from tenants and owner occupiers = rental growth and capital growth...
A lot of people from our parents generation will recommend land over buildings, but good luck finding over 500sqm for a reasonable price in a good area.
Yes great buy, especially with the oversupply of apartments.
And the train line which they've been talking about building since my old man migrated here in the 60s. Fantastic stuff.
And most of these new builds are opposite the public housing. Great stuff indeed.
