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melb first time buyer fun

Discussion in 'Introductions' started by dj_siek, 24th Mar, 2007.

  1. dj_siek

    dj_siek New Member

    24th Mar, 2007
    Melbourne, VIC
    Hi Guys,

    Im from melbourne and just obtained my first fulltime job after uni. pretty exciting time. I have been researching thoroughly... i really want to buy an apartment in the inner/outer city in melb.

    I can pretty much just afford to borrow 250k... however a mate of mine might be able to go in on it with me and purchase our first home together. Im sure i could get legals drawn up explaining the guidelines and rules if certian things changed... however im not sure if i actually need to do it. I.e is it worth me doing it with a mate. It will surely make the repayments cheaper. and i have access to my father who is a builder and can pretty much do anything so i keep leaning to the point that i could do it by myself.. and then maybe later down the track purchase with my mate.

    One simple question - when an apartment is adversied as: offers above 240k. what exactly does that mean. Can i go and say 230 to them at all? i found a great apartment awesome location however it says >230k it would be great if i got it for 230 or less but i just dont know how to go about making an offer.

    I look forward to talking further with the peeps from this site :)


  2. Bantam Roosta

    Bantam Roosta Well-Known Member

    7th Feb, 2007
    Canberra, ACT
    Welcome Joel. Sounds like you've got some ideas in your head. First up, you can offer absolutely anything you want, but it doesn't mean you'll get it. You could offer to swap them their unit for your old lawnmower if you really wanted to. 'Prices above $x' generally mean that they want more than this but will hopefully get bites from people like yourself and then they will try and get you up.

    Personal opinion here, but stay away from doing anything involved with money with family or friends. It doesn't matter what your legals say, it just isn't worth it.

    Enjoy the forum and make sure you have a look around at stuff that is already here. It may answer some of your questions.

  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

    9th Jun, 2005
    Sydney, Australia
    Welcome Joel.

    I also recommend a general rule of doing it on your own if you can - it's far safer.

    However, if you can get into a better class of investment with significantly better returns by teaming up - and there's no way you could do it on your own, then perhaps it might be worth it. You'd just want to make sure you're getting a better return for the extra risk you take on by adding another party to the mix.

    Many people will suggest that sharing an investment with someone else halves the risk - but I don't actually think that's true. If your mate skips out to Majorca on you, you'll still be left with the entire debt to service on your own. It's called "joint and severally liable" - the usual way a bank covers its own backside by giving both of you all the risk.

    Unless you can completely separate the titles and the loans, it's not something I would do as a matter of preference.

    But each to their own ... there are many examples of people who have done extremely well by pairing up with someone ... just make sure you enter the arrangement with your eyes wide open and a full understanding of the risks.