Hi, I am new and novice in property investment. Currently I am saving for my deposit and reading books. I have decided to buy my 1st property by June 2012.
Currently I am renting $335/week.
I am confused, should I use the $7000 1st home owner grant and save on stamp duty by buying my 1st home. I live in Brisbane. If I follow this path, I will try find a house under $270000 and do minor renovation. eg. new paint.
or
Should I buy a negatively geared investment property in Brisbane where i pay up to $100/week from my pocket and keep renting.Also, few questions?
What process should I use to pick few suburbs to do my research? or should I look into any suburbs.
Is there any Investors club in Brisbane.Any kind of help would be appreciated.
Thanks.
TJHi TJ
Personally (and not everyone agrees with this approach) I prefer to live in my own house rather than rent. I also believe that the first home can be an excellent stepping stone for purchasing your first IP.
With buying your first home, you can take advantage of Govt. incentives such as the FHOG and also spend spend some time improving the property via renovations – which generally adds value which you can tap into to purchase your first IP.
You also get to enjoy the benefits of owning your own home.
Like I said – this is just my thought and others will have a different take on things.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
As Jamie said remember the discounted Stamp Duty rate on a 300K purchase and the FHOG could amount to a savings of around $15,000 on Settlement.
Once you have satisfied the State requirements for both you can move out and make the property an IP.
Going to take you a swag of rental income to get $15K ahead.
Structured correctly this saving could be the deposit on the next property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Depends where you want to live. If prices are high it can put a halt on saving ror your next purchase. If rents are low (ie low yield) then buying an IP first would get you further quicker.
If you buy a cheaper property with a high yield you'll not be out of pocket so much so can save quicker. You could buy the PPOR still but a bit later.
As others have said it's different for everybody.
It is nice having your own home though.Trouble is whilst you would still get the FHOG 2nd time round you wont in Qld get the concessionary Stamp Duty and that is a decent sized saving.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for the advise guys. I think buying a house within my budget and use FHOG and saving stamp duty will be a good way to start.
Hi Richard, "Structured correctly this saving could be the deposit on the next property", what do you mean by this?
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