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If you move in immediately for at least 6 months and claim it as your PPOR, then you can keep it CGT exempt for up to 6 years, even if you are no longer living there it still holds its CGT exemption. Just something else to think about.
At the moment with rates up and banks being be bit more picky and who they will loan too, i would not recommend a 100% deposit either. Ideally it is best to have 20% so that you can avoid LMI, but this is becoming more and more difficult. Talk to a broker and see what your options, how much you can borrow etc and that will give you a foundation to see what you can afford to buy.
Unit or house? That's a tough one and not one that i can answer easily. It all depends on a number of factors. Where are you looking to buy? What are the median unit/house prices? Are you planning to buy and live in or rent out? What would be easier to rent if that is the plan? I bought a unit but i'm planning another purchase in the next few months which will be house.
Cheers.
Hey,
I was in your shoes about 1 year ago. I was earning about 42000K per year. I had about $12,500 in savings. I approached a broker and he told me i could borrow up to $240,000K. So i bought a place for $235,000K with a 5% deposit. At the end of the day after FHOG and expenses my loan was about $228,000K. My weekly repayments are about $400 a week. Luckily i have sinced had a considerable pay increase so it's not too bad. But at $42,000K a year i was clearing about $620ish a week of which i was paying $400 onto the mortgage weekly, leaving just over $200 a week for all other expenses. At the time that was way too tight for me so i stayed renting where i was, $60 a week in a shared house, and rented out my IP for about $290 a week. That way i was only out of pocket $110 a week.
On the down side though, to avoid paying CGT you need to live in the place from settlement date for at least 6 months. I can expand further on this if you would like.
Anyway that is just a basic idea of what you might be getting any for. Be sure you can afford to do it before you throw yourself in the deep end. It's been a push for me at times, but i think it is probably the best thing that i have ever done. If you buy a unit be sure to look into body corp fees and any proposed body corp work. I got stung by this one because i did not do my research and now i am for about a $5,000 body corp fee to fix up a buggered driveway and plumbing system.
Cheers,
Dean
