Hi im looking at by my firts property. I live with my parents an pay nothing in rent i have it sweet and want to start an investment portfolio while i can. However i am very scared at the same time. I have a current deposit of 30 000, this with FHOG. And have been aprroved around 200 000. I was wondering what you thought i should do. And the areas around brisbane which would be the best to buy in. I have been looking shailer park and tanah merah but not sure.
thanks in advance for any help
dennisHi Dennis
Go to as many open houses as possible before purchasing. That way, you'll get a better idea of how the market is performing and also get used to the interactions between agents.
Work with a good broker/banker that will help you through the process, explain everything clearly and be available to help with any questions you have.
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]
Being your 1st buy; stick with an area you know- doesn’t have to be close to you…just an area you know a bit about.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Dennis agree with the boys i would stick to a couple of suburbs you are confortable in and get to know them.
Structure the loan correctly so that you can comply with the loan conditions as well as maximise your Tax deductions going forward.
So many lenders try and push P & I loans without the thought or knowledge of loan structuring.I would even think of borrowing the maximum lvr available and accepting their maybe some mortgage insurance payable if it means you can retain some of your cash savings for the next property.
Your Broker should be able to explain how to set the loan up correctly.
Finally dont be scared as it could be the 1st property of many you can add to your portfolio.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hey guys thanks heaps for your help. Would you suggest buying a place and paying it off until it becomes a positive gearing property before saving for the next property?
thanks in advance
dennisdennispj wrote:Hey guys thanks heaps for your help. Would you suggest buying a place and paying it off until it becomes a positive gearing property before saving for the next property?thanks in advance
dennisGood luck, you be waiting for a while…
By the time it’s +VE, property prices would have gone up.Was there a reason you wanted to wait till it’s +Ve?
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
No Dennis as Michael has mentioned in Brissie you might be waiting a while and the FHOG may have disppeared.
Wouldnt pay it off but would structure it correctly and it will have the same effect.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Okay thanks heaps, for that
dennis
you mention you have $30k deposit WITH the FHOG, but you say you want to start with investment property…
just to clarify, as you have not owned property before you may be eligible for the FHOG but only if you live in the property for at least 6 months. you can always have someone else rent a room in the property to help income, but you need to live there. after that time you can always move back home.
or you buy an investment property without the FHOG, don’t live in it and stay in a rent-free scenario… FHOG would still be available if you chose to buy a property to live in, though of course subject to the FHOG still being around at that time.
you need to decide which scenario is more suitable to you in your current situation, there’s no simple right or wrong choice there.
learn about offset / MISA accounts so you know what to do with your extra money… rather than “pay it off until cashflow positive” you can have your funds reducing the interest payable (which is tax deductible anyway) and then when its time to purchase another property easily take these funds to be used elsewhere.
Congratulations on your decision to start investing, and good luck!!
Emma
Hey guys thanks so much for your help. Its really appreciated and makes it a little bit easier all round. And Emma i probably wont be moving into it cause it looks like ill be moving to sydney in the near future.
Thankyou heaps for the advice about the off-set .
thanks again dennis
Hey Dennis,
I'd agree that you could take a look at suburbs your familiar with. However, as a caveat to that, I would suggest to check up and make sure that those suburbs you know are actually investable.If you do your research, you may find that some suburbs you know are BAD places to invest in.
All the best!
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