Buying a first home in Melbournebut currently live in Sydney

Hi Everyone

I live in Sydney but intend to move down to Melbourne in a year or two to be close to my sister. I understand there is slightly higher stamp duty in Melbourne but would appreciate any advice as to any other costs or things I need to be aware of? Some other info:

- It will be my first home
- I can either use as my Melbourne abode (not rent and work between Syd and Melb) or could stay in Sydney for a year or two renting cheaply here while renting out the apartment in Melbourne.
- My job is relatively flexible for remote work
- I have pre-approval for a loan based on my Sydney address and job
- I haven’t cleared this plan with the bank / my mortgage broker yet

Thanks in advance.

 

I’d like to be close to my sister who is in Port Melbourne. Unfortunately anything other than apartment is either just out of my range, or on a busy road (I can’t do noise!)

 

Thanks Y-man

- Budget up to 1m
- Proximity to sister: up to 25 minutes walk
- I drive but won’t have a car permanently in Melb until I move down 100%

Edit: although come to think of it I could leave my car in Melbourne, if I rent close to the city in Sydney, and this might give me a bit more range from my sister.

 

There really aren't any first home buyer benefits at that price point, so this just became easier...

The challenge with buying a PPOR remotely is convincing the bank that you can work from home or that you can make the communte. An easier alternative is to simply purchase under the scenario of it being an investment property.

Once you do move in, get your license updated to that address or get a utility bill addressed to you at that address. It's then easy to get the bank to change your loan from investment to owner occupier and enjoy the cheaper interest rates.

If you don't move in, you've now got an investment property in Melbourne.

 

Thanks @The Y-man and @Peter_Tersteeg . I’ve spoken to my mortgage broker and confirmed I just need a letter from my employer to confirm my salary / terms of employment won’t change. There are no min days I need to live in Victoria, but do need to show things like ulility bills and drivers license registered in the state.

@The Y-man I know rentvesting can be a smart financial move but it doesn’t solve my goal of finding my own little sanctuary that I know is mine for as long as I want. I’d prefer to find something affordable and livable / lovable and invest the rest of my money in long term funds.