Forums / Property Investing / Help Needed! / Newbie – Buy or not to Buy? $350,000 Budget

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  • Profile photo of qweqweqweqweqweqwe
    Participant
    @luca-321
    Join Date: 2015
    Post Count: 2

    Hi everyone.

    I am new to the forum and investment property. Started renting out 5 years ago so I thought was the right time to start thinking to buy a property. My budget is really low, let`s say around $350,000. I am looking for an IP in Melbourne and repay the loan with the rent. I need to borrow around $270,000 which will make $1780/month @ 25 years.

    I`ll be renting out another place.

    Do you reckon it is a good plan? 25 years look a bit too much to me but it is the only way to make it. There is also the chance Ill be relocating overseas within 5 years so thats another reason to buy an IP.

    Thank you all,
    Luca

    Profile photo of Jess PeletierJess Peletier
    Participant
    @jaylou
    Join Date: 2009
    Post Count: 12

    25 years is fine for a loan term – I’d even stretch it out to 30 years if you can. This lowers your repayments and lets you use the saved cash for other investments. You could also think about using interest only payments – this allows you to save more into your offset account, and have easy access to cash if you want to buy a home/move OS etc.

    Speak to a good broker about your options, they’ll be able to walk you through it all and help you figure out what’s best for you based on your goals and what you hope to achieve. :)

    • This reply was modified 4 years, 2 months ago by Profile photo of Jess Peletier Jess Peletier.

    Jess Peletier | Seed Financial
    http://www.seedfinancial.com.au/
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    Mortgage Broker - Perth and Australia wide

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    Hi Luca

    No i think it is a good idea but as long as you are happy with Melbourne as your investment destination.

    We are finding the inner city properties of both Sydney & Melbourne are getting rather overheated and therefore are putting more of our forum clients into SE Qld which still has a lot of room left in it for growth and appreciation.

    I think your budget is more than sufficient and you should be able to find something that meets your criteria.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    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 qweqweqweqweqweqwe
    Participant
    @luca-321
    Join Date: 2015
    Post Count: 2

    Thanks Jess & Richard,
    Luca

    Profile photo of Howard MoralesHoward Morales
    Participant
    @howardm673
    Join Date: 2015
    Post Count: 16

    Hii

    Well, you have a sufficient time to repay loan. So, according to me you had taken a good decision and you should go with it.

    Howard Morales | Selling investment property in brisbane
    http://www.mcbeathrealestate.com.au/

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