Hi,
I’m currently living in a unit in a block of 9 which is owned by a hospital. Recently I came to know that the hospital is going to sell the blocks of units that it owns along my street, including the one that I live in. The unit that i live in is on the 2nd level and has 3 bedrooms. It is a little dated, but I think that with some new coats of paints and some minor renovation, it will look as new.
I have worked out that the kitchen, toilet and bathroom needs to be renovated. The fly screens would need to be replaced as some are old and torn. The balcony door would need to be replaced too as it can’t be shut properly. I would want to change the windows as well but I am not sure If I would allow to do so, otherwise maybe a coat of paint for the window frame should do the job.
I have been playing with the thought of asking the property manager if the hospital would sell the units to individual buyers. The location is very accessible with transport, supermarket, cafes and university all within 5 min of walking distance. The rental vacancy is low for this area.
I am not very sure how much money I can take up for a home loan. I have about $10k in savings and I intend to make use of the FHOG as well. I earn a gross income of about $49,000/year and do not have any outstanding credit card debts. What are the other costs that I should consider when buying a unit?
If I can afford to buy the unit, I plan live in it for 12 mths (FHOG requirement), and at the same time save up some money for the renovations. After the 12 mths is over, I plan to move out and rent another unit to live in and to renovate the unit that I have bought and rent it out after renovations.
As this will be my first property purchase and I am not sure what I should do or how I should go about looking for more infomation. It sure feels scary to buy something that is worth so much money for the first time. Would love to have any comments and advise on the above. Thanks!
You’ll probably find that unless they are strata titled the hospital won’t be able to sell them individually – they will have to be sold as one property.
Also, to change the windows would alter the look of the building, and assuming there is a body corp, they would not allow this type of change I believe unless it was approved for every unit.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Estimated Breakdown of costs
based on LVR 95%
Value of Property $143,000
Application fee $600
Mortgage Registration $75
Land transfer $452
Stamp Duty $4060
Loan mortgage insurance $2676 estimate added to loan
Buyers deposit $15132 (FHOG +5132)
pay stamp and app fee from remaining funds
Loan of $132,950
Final Loan amount with LMI $135,626
repayment of $450 per fortnight based on 8% interest rate 30 yr term P & IBased on LVR of 100% if you can find a bank that will accept it
Value of Property $193,000
Application fee $600
Mortgage Registration $75
Land transfer $570
Stamp Duty $6460
Loan mortgage insurance $5246 estimate added to loan
Buyers deposit $0
pay stamp and app fee and difference in loan from property value from remaining funds
Loan of $187,035
Final Loan amount with LMI $192,281 added to loan
repayment $631 per fortnight based on 8% interest p & I 30 yr termCan you afford the repayment is what you have to decide.
No responsibilty taken for reliability of figures I recommend you talk to an appropriate lender for an exact quote on costs.Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for your replies La and duckster. I think first of all I need to find out if the units are strata titled. Will keep you all updated. Thanks.
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