G'day everyone! Persistent reader, first time poster hoping to gather some insight. I've learned a lot from here just lurking, and actually quite enjoy reading the discussions. Perhaps time to take part in some. About me: 24 years old, single. $100,000 p/a income (+/- $5000-10,000 bonuses p/a). Due to some unfortunate family circumstances last year, my savings were halved so about $50,000 now in cash. In 2020 I bought my PPOR, now IP 2br apartment near Parramatta, NSW. Currently worth about $450-460k. $130,000 equity. Rent $390 p/w which largely makes me break even with associated owning costs. At the moment I live in a regional NSW town on a (full-time) location contract. My employer subsidises my rent and some bills so my rent is about $20 per week. Aside from food and utilities, I don't really have any other expenses. I have no other debt. My contract here will be up in two years, and upon my relocation, my employer will pay my entire stamp duty provided it will be my PPOR. Otherwise, I can extend my contract here if I wish to. My goals: I want to continue building my portfolio obviously in an effective way. My dilemma comes down to when, and where to buy whilst at the same time being mindful of not setting myself up to be cash poor. My initial thoughts are to keep building savings and: Make enquiries to see if it would be financially sensible to purchase another IP in the near future. I was thinking regional NSW, or in a suitable Brisbane suburb, and then upon the conclusion of my contract, I'd hopefully be in a position to purchase a PPOR somewhere in NSW where I wouldn't actually mind living (Sydney or 2-3 hours max from Syd is ideal). Sit tight and just buy a PPOR upon the conclusion of my contract. I can extend for another 12 months to buy some time, but I'd prefer not to if I don't absolutely have to. Just wondering what some more experienced thinkers here might have to weigh in? Cheers
Agree with @Trainee line of thinking. Strata fees will only increase, not decrease because buildings age. If you have facilities in the building such as lifts, it is costly to maintain. I bought one many years ago in a big block and regretted. Bought a townhouse in a complex of 6 instead and gradually upgraded to a standalone house. Noting it is a breakeven is great but when there are further interest rate rises, then it's harder to break even.
2x lifts, bbq area, garden area, garage and storage cages. Not sure what else is relevant that I could think of. Building is about 10 years old now. In my mind, it seems like a solid apartment to maintain with tenants but I don't predict any great long term CG. I'd probably sell it if I was in a position to purchase a third or fourth property. Although, I must admit I hate the strata with a passion.
With lending limits, you have to be choosy. That's 350k of borrowing capacity that's locked in there. e.g. in the future, it might be worth thinking about whether to upgrade to something with more land.
Yes, find a property with land content. Apartment is just space. If you are looking at a townhouse, make sure it is in a small complex with no frills. Upgrade to a standalone house once you are able and willing to.
Welcome to the forum! It's going to depend entirely on your borrowing capacity when the time comes to buy your new home, and the purchase price of the new home. The biggest thing to consider will be - is your income going to drop right when you want to buy your PPOR? I know for us we had a drop in income when we left the country and moved metro. You'll need to work with a good broker to plan it out for you based on your assumptions - that will give you some hypotheticals to work with, at least.
Thanks I'm in the public sector so employment is pretty much guaranteed anywhere in NSW. My income will only increase year to year. I've got a borrowing capacity of approx $750k according to my broker. I'm just nervous about shooting myself in the foot and realising it later on.
What is the market like in your local regional NSW town? Might be worth grabbing a house with a big yard for some land growth and or possible small development down the track.
I live in a <200 population town, so maybe not right here but I'm quite open to some more lively regional areas.
Yeah thats a bit small Any regional cities with 80k+ populations nearby? You need critical mass, diverse economy, growing population and tight rentals to take the risk out of it. Depending on your budget of course
What about buying an investment property in an area you wouldn't mind living, use it as an investment property for now, then move into it when you're ready? Once you move in, then start looking at your options for another IP and continue growing your portfolio
Would you mind sharing where? Do you mean 200k population? I agree with others- potentially look at buying a house with a big block where you can maybe add a GF. All my properties are in regional NSW and doing quite well.
I wish! No quite literally a town with less than 200 people. Probably more like 20 people in the 'CBD' I'm very open to buying in a regional centre with some semblance to civilisation, but I would really like to move (closer) to Sydney again for family reasons. So I'm thinking to purchase an IP somewhere there, or be in a position to purchase a PPOR closer to home and take advantage of the government paying my stamp duty again.
