All Topics / Help Needed! / 1st Home buyer

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  • Profile photo of JAnglezJAnglez
    Participant
    @janglez
    Join Date: 2013
    Post Count: 3

     Hey guys, I am currently studying in university and have a basic part time permanent job. Is possible – If I can buy a house and rent it out. Basicly a Investment property, relatively cheap to start off with.   utilising    the 1 st home buyer grant. and a small deposit of 9k. Aim is to buy something cheap which will generate positive cashflow and serve as a stepping stone.         

    Any tips or information, If I should wait till I graduate and get a secure job or is it possible to buy a house now depending on my current situation. I am studying on a governemnt provided hecs loan for citizens, will that have some effect.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Firstly welcome to the forum and i hope you enjoy your time with us.

    I think it a very noble to want to buy a property whilst still at university but i am not sure it is doable on a part time job.

    Remember lenders still apply the same criteria as they would if you were on a full time wage and had 2 kids etc and that relates to serviceability.

    I assume you are single so immediately you are allocated a living allowance which is somewhere around the $1200 mark / month and then from that you add in an amount to cover potential rent or board etc (even if you live at home some lenders throw that in) percentage of any credit cards, hecs debt etc.

    Your net income needs to cover not only these expenses but also your loan repayments based on a P & I loan over a sensitised rate off upto 2% higher than the actual rate.

    Then deposit. No sure which State you are in but in the main the FHOG has disappeared as we now it and now only applies to new property or something you build.

    Remember even if you do qualify for the First Home Owners Grant you need to ensure you comply with the terms of the Grant and one of them being you live in the property for 6 continuous months starting within the first 12 months. 

    This means you could rent the property for a while.

    Not saying it can't be done just make sure you don't leave yourself short.

    Good luck going forward.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of JAnglezJAnglez
    Participant
    @janglez
    Join Date: 2013
    Post Count: 3

    Thanks alot for the information, It cleared many questions I had. I think I will talk to a Accountant/ Mortagage Broker to see if its viable to go ahead or not.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Richard would be a good starting point. He's already provided some good pointers – can't go too far wrong giving him a call.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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

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