澳洲Australia property Newbie to buying property | Sydney
在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo
I'm a 35 year old single looking to buy my first property. I dont have a family so have no urgent need to buy a house to live, I earn 65k a year and have saved between 160k and 200k.
Unfortunately for me, I am not eligible for the first home buyers grant (my parents bought the family house in my name when i was really young but there is a clear understanding that they will balance this out when I do buy a place.
Currently I rent in an inner Melbourne suburb
Anyway - with the information supplied - would my understanding based on research be correct in thinking that the smarter long term financial/investmentthing for me given my finances and personal circumstances be that I buy an investment property to rent out (whevereaver that may be) rather than buy my own place to live in (and rent).
I want to live in inner city but not fussed if buy in inner or outer suburbs or even in the country
$160,000 deposit saved.. Where is all this money coming from! Congratulations. I earn the same salary so know what it takes to save that.
In regard to your question: Up to you.
To live in, you will have a place to call your own and never need worry about a quarterly inspection again. Your repayments will eventually be eroded down while rents around you outpace your mortgage repayments. Equity to soon follow.
To rent out: you are elightable for good tax deductions, will most likely be chipping in for the rental shortfall between what you are receiving in rent and what you have to pay out for the mortgage including all your bills.
I personally made a good equity profit with our PPOR because we did lots of work to it over the couple of years we lived there. Recently moved out to the country to do it all again while that is rented out at a good rent because of the improvements. And the best thing is: We received our stamp duty back because we were first home buyers AND the boosted grant. We had an interest only loan (and still do) and the money we paid out in 'rent' did not even reach what we received back from the Government in incentives over a good 18 months of living there. Also remember. If you did do this. You are able to move out of the property and rent it for 6 years, sell, and pay NO CGT. Thats a pretty sweet deal..
Please note that we rented a house while our soon to be PPOR was leased by DHA for 11 months before moving in-to it and that worked well.
We have a few other properties working for us that are pretty well set and forget. I also receive my entire tax back every year because of the negative gearing and depreciation achieved through these rental properties. Nothing out of the ordinary, almost any rental would achieve the same tax break(s).
I think you need to do some personal thinking.
Welcome to the forum.
From a finance perspective, if you do decide to purchase an IP first I'd be reluctant to drop that entire $160k into the deal - particularly if you're ever considering purchasing an owner occupied property at some point.
It really depends on what your goals are. When investing, you can't compromise on your investment quality/location. Whereas if you are renting, then you can easily move out to a cheaper place which can help preserve cashflow and make things easier for yourself. What is the end game for you?
I dont know the Melb market as I'm based in Syd. But based on the limited info you have provided and if I were you, I would:
1. buy a 1br to live in myself - I'd probably look at something for up to $350k (try to get something as big as you can for the budget). You need somewhere to live in so might as well pay off your own asset than pay off somewhere else's mortgage by paying rent); and
2. buy a 2br unit (or a house if u can afford it) as an investment property for around $450k to $550k - you might need to look for high yield as the mortgage on your own property will significantly reduce your available cashflow
I would like to congratulate you on having such a healthy deposit of $160,000-$200,000 worth. That is very impressive.