First home buyer! - entry level - apartment vs house? Lifestyle vs CG(land)

Hi all,

I’m currently seeking any advice at all on my current situation looking to buy my first property.

Firstly I am a first home buyer and would like to make use of the $15,000 grant (I need it to make buying possible or I will have to wait longer to buy the below will alliterate.

I am aiming to have a 30k deposit + 15k grant on either a 350k house or apartment in the next 5-12months.

I am 23 years old, currently living in a one bedroom studio flat that is roughly 35-40m2; the thought process behind this was to save as much as I could for a deposit whilst being here. But I have found over time its not something I look forward to coming home to every day and is starting to weigh in on myself and partners happiness as we are over how utterly small it is... not to mention the kitchen is literally two steps from my bed. And there are no rooms other then the bathroom lol. We both work full time and can manage repayments on a 90% loan of what we want however that may not be the smartest idea for my future although it would get us into the market and get us in a reasonable living space.

Do I continue to save for another 2 years and suffer in order to come up with that golden 20% deposit or is roughly a 10% deposit a good entry level to the market? Or do I upsize my rental and pay more in rent meaning it could take another 5 years for that deposit which may not be worth it in an increasing market?

I have two options;

Option 1: buy an apartment (2 bedrooms) as it’s all I can afford in the location I desire (Springwood in Logan Qld) as my family and friends are here, it’s a close commute for both myself and my partner to work and I also enjoy how central it is to Brisbane, Gold Coast, Redlands and Ipswich. (I prefer this option)

Option 2: buy a house (3 bedrooms) for around the same price towards yarrabilba or holmview in Logan qld and not enjoy the location but hope that the CG from the land make it some what of a wise investment for my future.

Problems:

Option 1: sounds great but I’m not sure about the resale value later down the track although it is in an uprsising location as Springwood has a 20 year roll out to become the heart city and cbd of Logan as it’s central between Brisbane and gold coast and therefore may drive the apartment value up although I have read that apartments are a tough market. Either way it gets me into the market in a semi deecent location that suits my lifestyle.

Option 2: well there’s nothing more to say other then life style. I feel I wouldn’t like living on the outer suburbs neither would my partner she’s made that pretty clear. Purely because we commute further and have no family around ( family is important to us both )
Although the idea of owning a house does sound nice... and it’s only an extra 25 mins West..

Upcosts -
Are the upcosts of an apartment including body Corp still cheaper then the extra fuel and home insurance etc if I was to go the house option? What’s cheaper all round in that sense?

Contrary -
-if it’s pretty much on par in terms of what the CG is then I’d rather go the lifestyle route in the apartment.

OFF THE PLAN
being a first home buyer means that 9/10 times the property will be “off the plan” which although allows me time to save I’ve heard that it can be dangerous as what you see in their little graphic display pictures may not be what you get when you turn the key and open the door and looking in for the very first time.
On that note is there any loopholes around this in which you could sign a contract that allows you to inspect your property before settlement?
And has anyone had experience buying off the plan apartments or houses before?

Is 10% of a deposit to low in this current economy?

Any advice from anyone that has been in this situation before or just any advice at all would be greatly appreciated!

Thanks.

 

Both those options aren't great hey.

Check out what your options become if you have a deposit. I reckon you'll be able to buy a house close to where you want to be.

We had the choice recently of using the grant and are absolutely delighted that we did not. We got a muuuuuuuuch better place in a kick *** location for the same price as a house in the sticks.

Why don't you find another place to rent, try and earn more money and put yourself in a better position to buy an older place?