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Help in buying a property!

Discussion in 'Real Estate' started by beefz, 3rd Aug, 2011.

  1. beefz

    beefz New Member

    Joined:
    3rd Aug, 2011
    Posts:
    1
    Location:
    nowra, nsw
    Hello everyone,

    I'm a noob at all this but here goes. I would like some tips and hints or even what you might do if you were in my situation. Any ideas would be greatly appreciated.

    I want to buy a property, i don't no if i should buy a PPOR or an IP, and what the best type of loan for my circumstances is IO or P&I and how much i should/could borrow safely with rates at around 9-10%

    Alittle info about me to help you out! I'm 26, I live on the south coast of NSW, i have a stable job getting 50-60k a year.

    I have 50k saved and can get the 7k government FHOG and another 10k FHOG through my job and there is no stamp duty. I can live off about $500 a fortnight give or take alittle, I'm debt free, no CC or car loan.

    My father is a builder and i have alittle bit of experience in the building field with doing labouring for afew years so any renovations i think could be done relatively cheap.

    My thoughts are that i should buy a PPOR to utilise all the FHOG i can get live in it for 6-12 months while renovating it alittle bit and maybe trying to get a workmate to move in with me. Then move out and rent while having that rented out. I don't want a loan for more then 300k but that's up to debate as i'm not really 100% sure how much i could borrow safely, i have used them bank calculators but they dont seem to factor in bills and what not.

    Thanks alot for reading, and any tips and hints will be much appreciated.

    Cheers.
     
  2. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
  3. vanessa

    vanessa V J Tait & Associates

    Joined:
    15th Jun, 2011
    Posts:
    23
    Location:
    West Pennant Hills, Sydney, NSW
    Hi,

    I agree with MrPhoton about obtaining a pre-approval that way you know what you have to play with. I dont agree with mortgage insurance. It is a waste of money and entices buyers to borrow more than they should. The insurance covers the bank, not you. Find a comfortable limit and set it there.

    I gather you are in the defence force to receive the extra 10K so take advantage of it. Don't use the grants to buy furniture, use it as part of your price so you don't need to borrow as much.

    Once you have a pre-approval you can start seriously looking , however until then do your research, check out the different areas, the rental returns, how it will benefit you tax wise and prices. Once you have done that you will be ready to buy.

    You also need to source your conveyancer so that when you find the property you are not scurrying to find a conveyancer to assist you.