Hi all,
just asking for some general comments regarding my situation, I am very new to this and still forming ideas, direction and goals. Although one definite goal is to get my money working better for me.
I am currently renting with wife and three kids and have been told to get out in 60 days [now 50]. Have 30k in hand. We were offered this place around $300k but just out of our league.
I am not interested in buying est. as half the 30k will be gone in stamp duty. I am faced with two options [well maybe three after looking in this forum].
1] buy house and land package new approx $250k – with the market slowing I feel the capital in here will take longer to build up
2] continue renting and search out some local IP’s and start on the road to finacial freedom
3] do a deal with the owner of this house – although I see this working for him better than me
Would like to here from others who may have been in same situations. I am on the Mornington Peninsula renting in Balnarring, with our minds focussed on the Hastings area [this I think is set to go ahead].
Regards
Andrew[|)]G’day Andrew,
Bummer about the “eviction notice” – it makes life suddenly a bit complicated…
However, it has obviously got you thinking about the future, so that may well be a blessing in disguise.
Based on the info you have provided, I would suggest a little of option 1 and a little of option 2.
50 days is, in my humble opinion, not really enough time to decide on life goals, move the family to a new residence, investigate suburbs for potential, inspect houses, crunch the numbers ( due diligence ), let alone find the dream home, buy it and settle, etc.
I would suggest you rent another place local to where you are now, but make a very firm and very strong commitment to buy a principal place of residence within the next 12 months – whether this is a “house and land” package or not is up to you.
I would also suggest that you make a commitment to decide with your family what your long term goals are – be that a humble home owner, or have 5 investment properties in 15 years time, or 50 IPs in 5 years time, or some form of world domination through property aquisition….
Once your goals are in place, and you have a “place of your own” you will most probably find all kinds of doors open up for you.
Good luck with what ever you decide !!
Thanks,
BDM
BDM,
world domination[
], I like that.Thanks for the comments.
50 days isn’t much time.
Andrew
Andrew,
Personally, I’d rent now and consider investment in PCF property. When renting, you save all the upfront costs of purchasing, the ongoing costs of ownership (eg rates, maintenance, insurance etc) and this will free you up to invest. Through wise investment you could potentially put your $30K to work and bring in a resonable second income (PCF Property) which would supplement your existing income and may enable you to buy in the not too distant future.
Gus
Hi Andrew
Another possibility would be to buy a house using a vendor finance arrangement. This would mean that you could put down $10k upfront to buy, keep the other $20k for when you’re ready to start buying IPs, and in the meantime you have a place to live.
I wrap houses in the Cranbourne area usually, where the weekly payment is about $100pw more than rent, depending on the house and the deposit put in.
I’m not trying to advertise, by the way, but just giving an idea of what you would be paying if you wanted to be in your general area and buy a wrap house.Keep smiling
FelicityGus and Felicity,
I appreciate the comments.
Thx
Andrew
], I like that.
The topic ‘Another “newbie” question’ is closed to new replies.
