$350k. Where to buy and What to buy

Hey,

I have a total of $350 000 to buy my first home

I am looking for some help as to what type of home and where I should purchase.

I am looking to buy in Perth, WA preferably a 0 - 40 min drive south of the CBD

2 preferably 3 bedroom 1/2 bathroom home/duplex/townhouse/apartment

I will be living in the house for 6 - 12 months with 2 mates paying for 2 of the other rooms

I will then move back home and rent it out.

I would be looking to keep the home for 5+ years

Looking for the best growth option and some help on what would be better, closer to city duplex/further down south home/close to CBD apartment/townhouse?

Really stuck on what would be the best growth option

Thanks

why would you buy now ?
Rent, then when prices are lowest, buy.
It's really a nobrainer.

If the OP has the 350k to buy then now would be as good a time as any, why rent when you can buy ? In 6 months he could be renting the place to someone, maybe even you. There are plenty of houses to pick from in that range and not many buyers ready to sign on the dotted line just yet so its a buyer's market. The situation could reverse very quickly in the 350K range of the market once the FHO buyers are convinced the rates will not rise anymore. You probably are not aware of how quickly the lower end of the market can take off in Australia seeing how you lived in Netherlands until recently.
Scamp, what price range are you looking to buy in ?

well he can buy now for 350.000, or he can buy the same house in 1 year for 200.000.
Hence my question : Why would you buy now , what you can buy in a year for half the price ?
If you want to waste money, there's better ways, and more enjoyable too, buy a boat or do a 10 year holiday or something, you'll lose the money too but at least you'll enjoy the time. Now you will just lose money and feel bad about it. Better to spend it and enjoy the money , right ? That's why I said he should rent.

I'm looking to buy yes. How much we will spend is not really important.

Well for one thing thats your opinion in regards to what prices will do

If I buy a house now with Key Start for $350 000 my repayments will only be $360 a week. If I rent I will be paying the same amount.

Why rent when I can buy a house paying the same amount?       

Once I move out after 6 weeks I will rent the house out and it will cover 85%+ of my mortgage

Now that's a nobrainer , Scamp.

hah yer sorry 6 months

360$ a week for a 350.000$ loan at 10% interest rates.

Please explain how you do that. Also , please explain how you will do that when you rent it out.

With Keystart

They put in for 30% of the total price of the house with no interest
You can either buy the 30% off them over the time you have the house or once you sell you have to give them there share back plus 30% of any profit

I have a $50 000 deposit as well

There you go

I don't know how much help this will be, but I was looking at apartments by Saville, since I've been thinking about moving back to WA (I'm currently in NSW... West Australian expat :(). This post reminded me of it.

Their site is http://www.savilleaustralia.com.au and they have inner city apartments. It's mostly luxury property though, so I'm not sure if that's what you're looking for. Personally I think that if you've got the money, you should buy rather than rent.

I have considered an inner city apartment

But I did want a 3 bedroom house and any 3 bedroom apartments going to cost 400k plus

Also I wanted something with land value

Thinking a duplex in Kardinya at the moment or a house in coolbellup even though its pretty dodgy

Kardiya is an  area which you will always find plenty of tennants to rent your place related to being so close to Murdoch uni  If you are to purchase around that area the 3 bedroom is definately a better way to go as many uni students like extra bedrooms to squeeze more people in to make things cheaper with their low budgets. 

Well Coolbellup is the next suburb south from kardinya and I would have a free standing house on an approx 800sqm block of land?

Compared to a duplex on a 300 - 400sqm block of land semi attached/attached in kardinya

Yeah I know,

Kardinyas a nicer and more popular suburb but I just dont know if I want to go a 3 bedroom semi attached/attached duplex on a 300 - 400sm block in Kardinya
Like this 1
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104866617&f=0&p=10&t=res&ty=&fmt=&header=&cc=&c=78955669&s=wa&snf=rbs&tm=1216950105

or a

3 bedroom home on a 800sqm block in Coolbellup like this 1
http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=105044468&f=0&p=10&t=res&ty=&fmt=&header=&cc=&c=46125508&s=wa&snf=rbs&tm=1216950197

Not as dodgy as it used to be, they've been moving undesirables to other areas for the last 6-7 years. Still got the stigma hence the lower land value.

what about bibra lake or leeming? i hate coolbellup

I'm not just looking at Kardinya or Coolbellup it was just an example of looking in 2 sorts of different places

Smaller house/block in nicer suburb
Bigger house/block in not as nice suburb

Bibra Lake and Leeming are in the same cateogry as Kardinya I think. I prefer Kardinya because its not quite as far inland, closer to Freo and beaches

Is this a long term investment? ... no one wanted to live in Mossman Park not that long ago.
As for buying now if it was me i would be waiting and watching for at least  6 months... ( that way you can save a bigger deposit and personally i think you will be paying less and might not have to share 30% of you property with the government) if the market starts moving again you'll see it.
Keep and eye on Hilton, there are some dropping prices starting to filter through and the bigger blocks are zoned for subdivision, very close to Freo on the express bus route to both train lines and uni, local shopping, rejuvination area, lots of parks, close enough to the beach. Buy a house sell off the back block use the equity and buy again.

Really a personal preference - classier suburb or more land - depends on what you want. Personally I prefer the better suburb/smaller house combo but a lot of people would go for the land and wait for the area to improve (Coolbellup will improve in time, it's not a bad location - similarly Hilton or Hammy Hill).