am i ready to buy a house?!

Viewing 4 posts - 1 through 4 (of 4 total)

mcubed
Member
@mcubed
Join Date: 2004
Post Count: 33
July 6, 2005 - 4:52 am
hey everyone
I think I am ready, I have been waiting for ages to do this!
but please give me some advice to see if I seriously am ready to buy a property. I am permanent , on $41k per year and have $15k saved for a deposit,
please let me know, ideas, ways I should go about buying something (i can do that) which would be better, house or unit? or townhouse? cheers
ps this is my first home
look forward to ur responses
Cheers
mcubed [/b]
Simon_G
Member
@simon_g
Join Date: 2005
Post Count: 56
July 6, 2005 - 5:52 am
Hi mcubed,
I am in a similar boat to you, in that I am about to buy my first investment property. (Signed the contract today!!!).
The best way to start is to contact a mortgage broker and get a pre-approval. That way you know if the banks will lend to you. It saves wasting time looking if you can’t get finance.
Good luck,
Simon
aussiexj
Participant
@aussiexj
Join Date: 2005
Post Count: 61
July 6, 2005 - 8:53 am
Go and see a financial adviser first. My wife and I bought a great house in a great area of Brisbane. It gained greatly in value, but because we didn’t get advise we bought the wrong type of property (still neg geared). While on the surface it looked like a great deal, had we built a duplex on vacant land ( for example) we may have doubled our rental income and depreciation. It has slowed our progress significantly eventhough it gained in value and hasn’t cost us a cent in up keep.
Buy new and look for capital appreciation potential.
AXJ
Steve McKnight
Keymaster
@stevemcknight
Join Date: 2001
Post Count: 1,763
July 6, 2005 - 10:27 am
Hi,
It’s a pity you missed the recent PPPW as I went into a lot of detail about how to find, negotiate and buy real estate.
Nevermind…
My suggestion to get started would be to work out what sort of investment return you desire, as growth properties will be different to income properties.
Next, test the water to see how much you can borrow as this will provide a context for what sort of properties to look for.
Then it’s time to look for deals. Just watch out for ‘solution property’ such as serviced apartments. These can still be good investments, but the returns are usually quite low and the assumptions behind future capital growth can be a little loose.
For example, I was in town the other day and looked through a 1 Br + Study apartment in a recently completed development. The agent told me the property had been bought for $410k off the plan and was now for sale at $390k on a firesale basis. The likely rent was $325 per week. Any way you look at it the vendor is in for a substantial loss, so just make sure you do your homework to reduce the risk that you will end up in the same position.
Be sure to try to keep emotion to a minimum and instead focus on the facts which can be incovered as part of the due diligence process.
Hope this has helped.
Bye!
Steve McKnight
**********
Remember that success comes from doing things differently.
**********
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com
Success comes from doing things differently