First Home Buyer Melbourne

Hi all I am in the market for a first home in Melbourne and looking for some advice.

Current assets.

Cash-30,000
Shares-40,000 (Etfs & LICs)
No Debt besides HECS
52k a year salary (Graduate Salary, will go up to around 60 next year)

Looking for either a 1 or 2 bedroom in East Melbourne in which i will be an owner occupier.(I work at The alfred hospital so close to there would be ideal)

What are some recommended suburbs?
Any tips on what types of apartments to go for?
Is it worth buying a low quality 2 bedroom over higher quality 1 bedroom just so i can rent a bedroom out?

 

Do you know how much you can borrow, and how much you can afford to pay each month?

 

I can afford a 350-400k place.

 

You'll have more opportunity to borrow from a lender of your choice, and possibly access more funds, if you pay off your HECS debt first.

 

I’m not sure I’d be buying an apartment in Melbourne right now as there are still over supply issues in areas.

If you do, make sure it’s a unique block with no more than 8 in the complex, but preferably less.

Regarding buying a 2 bedder to rent one out, keep in mind that you will face CGT issues on sale if you have used part of the property to derive income, although you will be able to claim partial expenses by doing this. If you rent it for cash off the books, then this is illegal.

Pay for some good accounting advice as well as some buying advice before doing anything. A few hundred dollars can save you thousands later!

- Andrew

 

I'll be super careful of buying apartment in this market.

Enjoy your life and live on rent and investment somewhere with more growth prospect i'll say .. .

Cheers,

 

Big fan of rentvesting, particularly in Melbourne.
Rent where you want to live (around the Alfred) and buy where makes the most sense!