Where to buy? The right market.

[eagledream]

Hi, i've posted in these forums before, extremely useful. I'll detail my current situation and then pose my questions. Any advice would be extremely appreciated. I'm nearly 22, live in Adelaide and work full time. I take home approximately $1700 per fortnight. I have about 30k in savings thus far, and live in a place owned by my parents (i don't pay rent). I anticipate by mid June i'll have approximately 50K saved and that is when i wish to buy a place to live in for myself. I don't want to have someone rent with me. I'm chasing 2 bedroom units as close to the CBD as possible. I am sure that i could probably get a 300k loan but i want to be able to still live fairly comfortably so something between 230-240k would be appropriate i feel, leaving me with approximately $190k mortgage (i don't know what sort of repayments i'd be making). Will the first home buyers grant cover stamp duty? any left over? Am i correct in believing that the market is likely to stagnate for a period and hence waiting another 8-10 months isn't going to see a massive rise in prices? I'm scared that if i wait until then i'm going to be priced out of the market. Any further questions i'm happy to answer. I understand that i'm in a fairly good position but am looking to gauge how comfortably i would be. I look forward to any advice from investors and users of this forum. Thanks.

P.S - sorry for the long post.

Eagledream.

 

[myoung]

Hey Eagledream,

For a $190K loan over 30yrs, you would be looking at approx $1500 per month on P&I.

Lots of calculators on the web for loan repayments, stamp duty etc.
This is a good place to start.
http://www.eaussie.com.au/calculators.htm

If you cant afford to buy where you want to live, my advice would be to buy something you can afford and rent it out, then rent where you want to live. At least you're in the market and building some equity. I've seen too many FHB not do anything because they cant afford to live 3km from the CBD which suits there lifestyle, then before they know they are 30 something and have saved nothing.

It is much harder to save once you leave home/start paying rent or mortgage, so buying something will keep you focussed.

Good luck.

Martyn

 

[mooby]

why not stay where you are rent-free and buy 2 IP's ?

 

[<KS>]

why not stay where you are rent-free and buy 2 IP's ?

hehe - probably because his parents may not want to support him for the forseeable future

<KS>

 

[MarkandTina]

Pick out 2 or 3 suburbs where you would like to live and have a good look at realestate.com.au

Build yourself up a shortlist of ones that you like.
Have a look at a few each weekend, get a really good feel for what they are worth in those suburbs.

Effectively become an expert on prices for those type of properties in those suburbs.

After a while you'll get a feel for if something is over or underpriced.

You'll be amazed at how many properties will fit your criteria over 3-6 months.

In terms of Adelaide prices, my spideysense* tells me that we are going to have another boom here starting sometime in the next 2 years, but I've got no idea when and neither has anyone else.

*spideysense isnt a technical real estate term