All Topics / Help Needed! / Newbie – Buy or not to Buy? $350,000 Budget

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  • Profile photo of qweqweqweqweqweqwe
    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,

    Profile photo of Jess PeletierJess Peletier
    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 5 years, 11 months ago by Profile photo of Jess Peletier Jess Peletier.

    Jess Peletier | Seed Financial
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    Mortgage Broker - Perth and Australia wide

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

    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.


    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of qweqweqweqweqweqwe
    Join Date: 2015
    Post Count: 2

    Thanks Jess & Richard,

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


    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

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