I don't know how to settle on a strategy... First time buyer in Sydney

Thanks. Finding it hard to decipher who is the “proper” advice as you say. I will start a new thread with some more solid ideas and see what the community thinks.

He used our incomes, our savings, our debt etc....? Is that what you mean? do you think it’s high or low?

 

not really. The MB was suggested to me by the same advisor advocating for the cookie cutter house/land package.
He only asked what budget I was looking at and I said around 700. He seemed to think that was a reasonable amount?

 

Have a look at the link in my signature for more than 50 posts I have written on strategies. I don't advise people on what to buy or where though - as my insurance doesn't cover that.

 

Hope you rethink using them then!

 

thanks so much. I have had a rethink, hence posting this whole thread.
Your articles on strategy are definitely interesting. Will read some again tonight on night shift

 

Dont look for someone to tell you what your strategy should be.

learn to evaluate strategies yourself.

 

100%.

Nearly every person or there who is willing to help with strategy will try to sell you into something that suits their niche.

You need to form your own strategy, and it needs to be flexible enough to include a range of option, not just property.

If you get help forming strategy it needs to be from someone who has no vested interest in 'what' you buy.

 

Good morning! I noticed your previous thread last week about a H&L that you have already moved on from.

The MB you spoke to last week is a loan salesperson working in conjunction with the H&L package developers. You also will require an independent broker who is not a loans officer employed by your bank.

Make an appointment with one or two independent brokers on this forum. Both Jess and Rolf are highly regarded. They all work remotely, servicing the entire country. There are several independent brokers on PC, along with other investing specialists such as accountants and property lawyers. See the Business Services section Service Provider Directory

 

Thanks very much. I’ve definitely moved on from them and the H&L package idea.
Will look at another broker once I’ve pinned down a bit clearer of a strategy.
Thanks

 

A unit in an inner ring Sydney suburb may well be a good solid investment that you and your partner can live in for a year or two then keep as an IP. I see you are willing to renovate it yourself. I dont know much about Sydney, so I cannot comment further, but there are plenty of threads on PC relating to successful investments in Sydney for you to research. Best wishes with this.

 

this is a newbie mistake.

finance drives strategy. Whats the point of a strategy you cant fund?

 

Hey @stovebyo
Great position and congrats

The person you were last week (H&L) V's this week (anti H&L) will be different next week

A strategy is more like having directions to a destination, ultimately along the way there may be roadblocks and obstacles that cause you to change route, but still hopefully always moving upwards
So don't get too fixated on the plan, it is all small steps toward independence.

You may find you can't get finance to buy a house, so look toward a townhouse instead, apartments are a PITA, you may have to look at shares in the shorter term to make you savings work harder for you while you save more deposit.

@Terry_w tips are a good place to start, thinking about ownership strategy and financial structuring early on to prevent costly mistakes

Living with family currently, your previous experience with renovation and that you work shift work, in your shoes I'd be looking to buy a renovation project, you can change all your postal there and call it your PPOR, stay/camp there as it suits for privacy, renovate at your leisure with the ability to buy materials or order and organize trades on your days after shift

This will allow you to build equity, claim first home buyers, all cgt free should you flip, or if you rent it out later get it valued

Don't forget to keep investing inyourself and partners education
Good luck with making a choice

 

thank you both very much. It’s all making a lot more sense to me now. I’ve been reading Michael Yardneys book and enjoying it.
Not even sure when I mentioned my shift work but yes, I am a Paramedic and enjoy a bit of a different lifestyle in terms of roster. 4 days on, 5 days off. I really like to do projects with my days off, which has been fixing an older car up lately, but have helped my brother renovate two apartments with those days off in the past. 5 days at a time really helps with momentum on projects like that.

thanks Jess. I’ve paid for your initial course and am enjoying that too. Not sure any of my desired Sydney inner ring suburbs will meet your criteria just yet, but we’ll see.

I’ve also spoken to my parents about going (partial) guarantor. This would allow me a nice offset to get started. The broker doesn’t believe an IO loan would be very likely in the climate this year, but time will tell.

 

Great .

IO is completely possible...if it's going to be an inv, but less likely for OO. Especially if a guarantor is involved.

 

yes I think that’s what he indicated too. As it would be a PPOR for the shortish term. Once switching to an IP I’m sure options such as IO can be explored.

there was also talk of how different banks may assess my income. I have an average base rate, but make almost a third on top in penalties. It’s how it’s been structured for many years with NSW Ambulance, but he indicated my serviceability could be shaved because of this

 

You'd just need to go with the right lender - they all treat penalties differently but given your occupation there's lots will use this at 100%.