Wise information for First time investment

[will2002]

Hi,

Im 25 male, casual worker woolworths 30+ week employed around 10mths. $31k p.a. Brisbane. No commitments or loans.
Have a deposit of around $60k looking to put it into some form of investment property. I called aussie today and can be pre-approved for an apartment for around $250k. with a $190k loan considering i already have $60k deposit.

Ive been looking at apartments and houses in the 250k and under price bracket and would like advice on what you think would be most beneficial to me for investment purposes. I do like the idea of an apartment preferably either located Brisbane city area, South Bank area, or Gold Coast.

If possible would also appreciate any links to apartments for sale that are a great buy

thanks
Will

 

[Peter_Tersteeg]

As a casual most lenders will want to see you employed for at least 12 months, some longer, before you can qualify to borrow money. There are exceptions depending on the circumstances. Make sure you have sorted out your finance before you purchase anything.

 

[Shahin_Afarin]

They are recommending an 80% loan which makes a broker's life much easier. I would question this strategy particularly if you have an aggressive strategy and want to purchase more properties sooner than later.

$250k is a sweet spot for me for a 95% loan. I would consider a variable with a linked offset. Use only $25k of the $60k deposit leaving you with $35k in an offset ready for the next purchase. Plus the LMI is tax deductible.

This strategy makes the broker's job harder but I believe its a better strategy for young and aggressive investors.

Im not a fan of units but I will leave it to the other guys to comment further on that.

 

[Aaron_C]

It will work but just be wary of the type of unit you buy.

 

[Waldo]

Plus the LMI is tax deductible.

I wouldn't even be considering the tax deduction benefits - they will be very minor on the salary you have listed. Something you will want to focus on is ensuring the yield on the property is good - positively geared if at all possible (as I imagine that you'll need to show other sources of income before you'll br able to progress past one investment).

 

[see_change]

I'd agree re finance advice. I'd want to put much less in as a deposit , assuming you can afford the repayments.

Go through a finance broker

I'd look at a split loan with most fixed and then a small facility with an offset account and park the rest of your money in that .

You may find in a years time ( or earlier ) you'll want to use that money as a deposit for your next IP.

My 24 year old daughter is looking at buying her first IP. Went through a finance broker . Has a 20k deposit and has been pre approved up to 400k.

Cliff

 

[Rolf Latham]

Hi Will

Welcome

Gold Coast certainly has some what look to be great beachside buys .........

Like most others have suggested I would look at a smaller deposit and hold my tax paid cash back for future challenge or opportunity.

Its also quite important to lookat where you want to be in say 10 to 15 years time and build your finance structure around those plans

ta
rolf

 

[nhg]

As stated above, I would look at chasing yield properties for now rather than capital growth.

Also this might not be what you had in mind, have you looked at also investing in your career? You may be making $2k +cashflow with a good buy, yet investing in yourself over the next year may mean you could double your income.

This will in turn mean you can more actively pursue investing over the long term and retire earlier.

 

[see_change]

As stated above, I would look at chasing yield properties for now rather than capital growth.

Also this might not be what you had in mind, have you looked at also investing in your career? You may be making $2k +cashflow with a good buy, yet investing in yourself over the next year may mean you could double your income.

This will in turn mean you can more actively pursue investing over the long term and retire earlier.

Depends on your viewpoint and aims.

The way I'd look at it at the moment , is that if you can see areas where you can see good capital growth , I'd

You need both , but based on my experience , the cash flow growth mantra is over sold . I certainly wouldn't buy a second rate property in a lesser area ( mining areas or 2770 / logan after a boom ) with minimal expectation of cap growth.

Cliff