First home, but where?

Discussion in 'Where to Buy' started by temporun, 20th Nov, 2020.

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  1. temporun

    temporun Member

    Joined:
    20th Nov, 2020
    Posts:
    13
    Location:
    Sydney
    Hello all, long time listener, first time caller.

    I’m excited to be entering the property market, (especially as a solo millennial without outside help)! But I’m not sure where to go for the first property, or if where matters as much as buying a good investment grade property.

    Though I’ll be occupying it for a period (8-12 months+) I am approaching the purchase from an investment property lens, with capital growth and yield the priority. The only consideration is that I’d like to be close-ish to water and transit.

    With a budget of 650k, these are the options I’ve considered
    1. 2bd unit around Doll’s Point/Monterey area, Sydney
      (an option from before I started thinking investment, but convenient and has growth potential)

    2. House in Brisbane bayside
      (am from BNE, emotional connection, would move up to occupy house)

    3. House in Central Coast
      (I have low/no knowledge of this area but research shows good IP potential)

    4. House elsewhere in commutable Sydney region
      (would need professional advice)
    I’d be comfortable buying in Brisbane without an advisor as I know what and where I’m looking for. Not sure if I’d go with a Buyer’s Agent for the other options, or simply research the F out of the areas, strategy, etc. myself (given BA costs). I’m also happy to do some reno on an older place.

    What would you do in my position, with a budget of 650k?
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,257
    Location:
    Australia
    How does your employment work if you are buying Brisbane to move into?

    Would these options change if you were buying solely for investment, with no intention to live in it?
     
  3. temporun

    temporun Member

    Joined:
    20th Nov, 2020
    Posts:
    13
    Location:
    Sydney
    Thanks Trainee. I would have a clause in my contract saying I can work from anywhere, to be able to work from BNE. Yes might be a big hassle.

    I'm not sure if the options would change if it were solely for investment, but I think options 2-4 would still come up for IP only, especially the Brisbane option (have romanticised the idea of buying a big old QLDer a bit too much).
     
  4. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    I actually met with @Mel Morgan this morning and we were discussing this exact thing. Your budget would definitely get you a 2 bed unit in Dolls Point, but when you say 'commutable', why is that important if you're able to work from anywhere (genuine question)?

    From a growth PoV, it is absolutely important for resale value as most people desire this, however for your current work circumstance it doesn't appear too important. In any case, if by 'commutable' to Sydney CBD then your best option for a house and land on that budget is down toward Wollongong where you could still ride the train in, albeit a long way if on a daily basis, or heading out west to Mt. Druitt or nearby. Unfortunately it's not enough for much else, unless you're willing to consider the use of LMI if you haven't already. That brings with it additional risk so ensure you speak to your broker and other advisers before heading down that route. It can definitely be a useful tool to long term success, if the conditions and your risk profile allows.

    From a lifestyle perspective, it would be better to take a unit in Dolls Point, but this also depends on your future plans in terms of having kids (maybe you do already?) and other lifestyle plans that should still be taken into account when purchasing your first property. Your decisions today can affect your outcomes tomorrow in a big way so take some time to think about what you want not only now, but will likely want in 3, 5, 10 and 20 years....I know this is difficult to see for someone younger, but it's important to at least try and visualise.

    As with any journey, start with the destination in mind and plan how you're going to get there. It will always yield better results, along with the right professional advice and guidance along the way of course.

    - Andrew
     
    Last edited: 20th Nov, 2020
    Mel Morgan likes this.