Hello everyone, noob here on the market in Brisbane. I'll quickly explain my situation in the following points: 1. I am on a visa. So I think I don't really qualify for loans do I? I'm hopeful that I'll become a permanent resident in 3-4 years. 2. I've got 200k almost ready to invest. My savings plus my parents help, who are overseas. 3. Working (65k) near Burpengary but open to buying anywhere around Brisbane. 4. Got my wife and one little baby here. So short to medium term goal is getting a house. Long term plan is to retire with sufficient income. I'm 33 btw. Based on my situation, what do you think would be a good approach for me with 200k available without any loans? Try to get as much land as possible in outer suburbs? Get a little apartment/unit and save on rent? Something completely different? Please feel free to educate me as I'm totally lost. Cheers!
I think you need to increase your earnings. $65k with a wife and baby is very very difficult. Even if you were a PR not sure you'd qualify for a loan these days. There are minimum living expenses these days when applying for a loan and with 2 dependents you will probably fail serviceability in many instances. How did you save $200k on that income? Or is it mostly from family? If you did manage to do that - that is an incredible amount of money to save on that income.
Agree on the above and if I was in this position I would continue to build on the 200k so when you do get into a stronger position to borrow visa and income wise then you can maximise that purchase.
I would also consider stamp duty implications and check on this part. As you don't have PR there is a chance you could get levied the stampy duty surcharge potentially. Best to check with a professional.
Hi, thanks for your reply! I've managed to save 40-50k myself in the last 5 years, the rest is from family. 65k is my primary/professional job, on top of that I do some odd jobs here and there which gets me 15-20k extra.
Hi, thanks for your reply! So, you'd suggest I should try saving up more before I go ahead with a purchase? I was worried that the market will move so quickly that by the time I get PR (3-4 yrs ish) it will be very hard to get anything...
Markets might move. But 3-4 year is still before the Olympics. With your rate of saving, I don't feel you will have an issue even with the markets moving. Most experts expect the growth to moderate a bit. Though no one has a crystal ball obviously.
I'd see a broker first. There are some very good ones on here. You might have more options than you think. The way I see it is that you have to pay rent regardless. Buying costs about the same as renting so may as well do that. Especially with a family. Stability also kinda has its own value for your family. This is often worth more than the $$$.... With 200k saved you could buy something modest...3br townhouses are around 300k in Burpengary. (Also check out goodna- you might be able to get a house). You'd only need around 100-150k loan which should be way cheaper than renting and allow you to save more. The trick would be to structure everything so you can buy a house or something else later. Essentially you'd be parking your 200k in your own home instead of the bank, ready to pounce on something later. A good broker can help here. That way you can see out your PR in your own home. In the meantimeI'd invest in yourselves (study etc) in order to increase your income. The absolute worst case scenario here is that you get stuck in your own townhouse...which is much better than being stuck renting.
$350K in Brisbane? Where is that amazing deal? If we are talking about Brisbane, and I assume OP is talking BCC so their kids get access to good schools and good opportunities, then a minimum loan of $500K is on the cards. Even with an apartment we are likely looking at 450K+ total. So additional $250K
Buy a fixer! Good land component. You seem super resourceful, and have great savings. Can't go wrong. Ppor is part of the story, looks after you family and wealth creation. Gor for it!
Are you good with your hands and are you willing to put ALOT.....and I mean ALOT of work yourself? If so buy this. The demo inside is pretty much done for you already. You can get the ball rolling fast on this one to start to transform it. https://www.realestate.com.au/property-house-qld-crestmead-138174790 If you can tackle most of the reno yourself and willing to do it every single night and every single weekend non stop for 2-3 months - you'll build yourself some nice equity and have a nice house on over 700sqm+ in a Suburb that is gentrifying bigtime so your capital growth will be compounded in the next 1,2,3 or.....5+ years however long you want to hold it.
Why it's not worth using the dozer and building a brand new with added depreciation and good rental (ofcorse not in OP case but in general, ehy fix it?)
Of course you can. But building costs of houses are exponentially high at the moment and there maybe zero profit after its all said and done. A brand new 4/2/2 may cost $350k+$400k+ easily for a very basic turnkey house using very basic materials - add to that the cost of purchase how much could you sell it for? It wont be worth it not until these areas are hitting $700k+ per house. If this place has strong bones and in the Ops case limited money - its a very good opportunity picking up something like this that he can possibly tackle himself.
Wow, thank you so much for the amazing responses everyone! Lots of great ideas and advices here, very much appreciated! Plenty of food for thought to munch on. @hammer would you please be able to suggest me brokers that you had mentioned? Thanks in advance.
2022 may be the year. High end Logan is already way over the $700k price bracket now and traditionally mid tier Logan suburbs like Heritage Park, Regents Park etc... all approaching $600k for 4 bedders now so I would say 2022 is the year we see $700k+ or $750k+ for all mid tier suburbs and at the lower end easily $600k+. Fingers crossed!! https://www.realestate.com.au/property-house-qld-heritage+park-138140430 https://www.realestate.com.au/sold/property-house-qld-heritage+park-137207698 https://www.realestate.com.au/sold/property-house-qld-heritage+park-137709974
