First Home Buyer

Hi Team,

I'm Nathan, I have found this forum whilst trying to workout where to buy my fist home. I to date have found this quite challenging to get every thinking I'm looking for. So I thought I would join here to be surrounded by like like minded people to learn from.

Thanks in advance for any advice you may give.

Bit of background, I'm 27 work in IT which is quite stable. There is myself and my partner. Tor be honest she is a part of the reason this process has been hard. As I think we should start in an older house to build equity.

My plan or my wish is to buy a house build equity within 2years rent the house out and move to the next house. I have two options, Central Coast (NSW) or Western Sydney.

I personally think Western Sydney and there is a lot of infrastructure being built will build equity quicker than the Central Coast.

Moving on it have been looking at either buying a new duplex/townhouse in the western suburbs.

Or

Buying an older property with bigger land and potential to redo the kitchen, bathrooms and landscaping.

I'm two ways about it.

New - everything is done potentially easy to rent out in a few years. Not sure how much equity I could build in a new townhouse in western sydney.

New - cost would max my limit

New - land size is really small no back yards

Older - you get bigger land, bigger front and back yards. Some big enough for granny flats or big sheds to work on cars and bikes.

Older - will leave me enough to redo the kitchen and bathroom/s

What I'm wondering is how it would work if I was to buy a place for 400-500k a kitchen and bathroom would cost me 30k max as I'm handy and have builders as friends and brother.

With the plan to build enough equity within 2 years to rent out and buy another house for 400-500k

Few questions

-What do you think?
-Where to buy?
-What to buy?
-How to fund renovation?

I look forward to hearing from you all!

Thanks

Nathan

 

New in Perth also means small bedrooms. Homes with small bedrooms do not rent as well.

If you find the right property, this can be a winning strategy.

 

Thanks Perthguy.

Looks like im on the right track so far.

Thanks for responding

 

Personally - I have a preference towards old. Especially those that you can manufacture equity in.

Having said that - West Syd is coming of a few years of massive growth. Not sure if it's a good area to be placing your money (I could be wrong). Admittedly - I don't keep a close eye on that particular market but I have seen clients do well over recent years and only recently has it started to slow.

Cheers

Jamie

 

Land increases in value and houses decrease in value so go for a property that you can add value to by renovating / subdividing / adding more dwellings.

Living in PPORs for a few years and fixing them up can be very profitable, especially if you time a cycle, and a great way to build a capital base as its CGT free.

 

+1. Living in an older house and fixing it up is probably the best option if it's feasible

 

Hey Nathan, welcome aboard.
It depends. Parts of each area - and particular properties - could do better in either location.

 

Thanks guys,

It's really hard you get differing opinions from everyone.

We went for a drive through the western suburbs. To be honest I don't think I could live there. The areas of which we could have already been through the manufacturer equity stage.

The Central coast has great land sizes and reasonable to pretty great homes on them already.

Either way I look at it is will still be 1hour away for work.

But only just last night highly advised not to go to the coast.

This is so hard