Hi all, I'm 23 currently making 40k and have the opportunity to buy my first unit as an IP in Edmonson Park. We are looking at a 3 bedroom unit, 2 car spaces, 2 bathrooms for 700k. The only reason I have this opportunity is that my mother (who already has a unit as an IP in St Kilda, Melbourne) is helping me with the deposit and all ill have to do is pay the additional costs like Water, Strata, Council, etc etc. I have been tirelessly researching the area's demographics and opportunities in regards to employment and it seems like a good place to invest in. In saying that though I am brand new to all of this and would love to hear what others have to say about that area and any suggestions would be greatly appreciated.
Honest opinion? This is a bad deal for everyone. Do some more research. New 3 bed unit that far out is a bad idea. You can't even afford the mortgage. Do you expect your financial situation to change in the near future (e.g. in a job where you can expect a significant pay rise)? Otherwise this is just going to drag your mother with you.
The only 3 bed Edmondson Park units seem to be new or off the plan. Throwing in two properties around that price range. Why do you think the 3 bed at Edmondson Park is better? 10 Iris Place, Blacktown NSW 2148 | Domain 7/23 May Street, Eastwood NSW 2122 | Domain
Yes, apart from start up costs like stamp duty, inspections, insurance and a property manager. The rent covers everything we only need to pay water, strata, council and damages/fixes to the property if any left by our tenant. Our deposit is 5% of the property
It's a growing suburb, train station and even an airport is in the making. There is alot of opportunity at Edmonson Park. A mjaor factor is the government incentive of 25k when purchasing, then apart from that there is also a builder incentive but im not too sure about that one. If you have a look at the 2 properties you linked and had a look at Costello apartments Edmonson park, im sure you'll see why we are so attracted to it.
I see why you are attracted to it, but by your own admission you have zero experience. Sure you are attracted to the right things? But......it's your mother's money.
Yes thats the only factor that im hesistant about, the distance. Sure having a train station right next to you is great but a trip to the CBD would be like 1-2 hours? not a enjoyable commute especially when you have to switch trains. However, having Parramatta 30mins away which is NSW's second CBD and as well as plans for Liverpool Westfields turning into our 3rd CBD in the future does leave some hope. My financial situation will have a positibe change in February as ill be earning 52k a year, not much but it is an improvement. We will also have my mums strong salary of 120k and the profit made from her St Kilda apartment as support if anything does happen.
Well the aesthetic of the apartment isnt a major factor to me personally. The first thing i did was research about bush fires in or around that area, population growth, schools, transport, shopping centres, pertol stations. It ticked all my boxes. Is there anything else i should be looking at? please suggest if any. My mother's helping me with a percentage of the minimum 5% deposit, i will be putting in the remainder and also paying the start up costs and quarterly payments.
So what $650+k from the bank? Just what is this property going to rent for? What is so special about the area that will drive capital growth? So when you finally sell you make a profit.
Is it OTP? I can't settle an off the plan property Also, what vacancy have you factored? What PM costs? Usually I allow 4 weeks vacancy p.a. and 10% management and other costs before you see the cash. The Y-man
