Mortgage and house help!!

Discussion in 'Loans & Mortgage Brokers' started by Sunnycoast, 8th Feb, 2018.

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  1. Sunnycoast

    Sunnycoast Active Member

    Joined:
    8th Feb, 2018
    Posts:
    26
    Location:
    Sunshine Coast
    Hey people,
    I've been browsing on here for a couple of months now and it's great to find somewhere with useful info. Firstly, I just want to give you some insight into myself and my position, and then maybe someone can provide me with some help. Thank you in advance to anyone who replies to this thread!

    At the end of the year, I will have approx 110-115k for a deposit, stamp duty and legals for a house. I will not be a high-income earner, as I am doing some studies at uni this year on the Sunshine Coast but living in Brisbane and will be teaching full-time next year (starting on approx 70k). I would like to know roughly what my loan potential would be so I understand my budget. Also, I plan to buy a house and live in it for 12 months so that it is my PPOR and then go rural to teach. This would mean that I will pay barely any rent when I'm gone (maybe 50-100 p/week). While I am gone I would rent the house out and throw my money at it also so that I can minimise the debt. I would be going away for approx 2-5 years unless I do not want to come back or something else in life changes my path. I want to choose somewhere that will get me some capital gains in case I ever choose to sell the property. Since I won't be earning a fantastic wage but I do have a reasonable deposit, I am a bit unsure of what price range I should look at. I feel that 550-600k would be good, but I understand that I need 20% deposit to avoid LMI?

    And I am considering buying a 3 or 4 bedroom house (not new but not a shitbox) so I can get a half-decent piece of land 5-800 metres? I have been looking at locations such as Buderim, Wurtulla and Coolum on the Sunshine Coast. I'm not sure if the bank would lend me 500-600k even though I have no other debt and a decent deposit. Maybe they would lend me that amount if I bought it as an IP instead of a PPOR? But then I lose the tax advantage in case I had to sell and I believe I would pay more stamp duty.

    What do you think of this plan so far, please correct me if I am on the wrong path. I am open to other perspectives, such as locations, approaches to borrowing money, different plans etc. Not sure If I'll be too late on the Sunshine Coast market by next year either. Thanks heaps to anyone who reads this.

    Cheers
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    5,458
    Location:
    Perth WA
    Hi and welcome :)

    That's a great plan - my husband is in education we did exactly what you're proposing. We saved a fortune in rent and living expenses while we were away, and it pretty much set us up even though we were single income with kids. I highly recommend it. :)

    From a borrowing perspective, it's impossible to give you any kind of borrowing estimate without a heap more info - have a chat with a broker and they'll be able to let you know your options.
     
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  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    4,857
    Location:
    Melbourne, Nationwide
    Hi Sunnycoast,

    You really need to get a better understanding of your borrowing capacity before you can really make any plans. It's great that you've got a reasonable amount for a deposit saved, but it's your income that determines how much you can borrow, not savings.

    @Rolf Latham is a great broker who is probably not far from you. It would be worthwhile making an appointment with him. He'll be able to give you some figures on what you can borrow with different lenders, as well as which lender has the most appropriate loan for your needs. He'll also be able to answer a lot of your strategy questions as well.
     
    Last edited: 8th Feb, 2018
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  4. Sunnycoast

    Sunnycoast Active Member

    Joined:
    8th Feb, 2018
    Posts:
    26
    Location:
    Sunshine Coast
    That's good to hear that someone had a similar mindset and it worked for the reply. I will contact a broker.
     
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  5. Sunnycoast

    Sunnycoast Active Member

    Joined:
    8th Feb, 2018
    Posts:
    26
    Location:
    Sunshine Coast
    Thanks for the recommendation. I'll get in contact with him. Cheers for all of that
     
  6. Sunnycoast

    Sunnycoast Active Member

    Joined:
    8th Feb, 2018
    Posts:
    26
    Location:
    Sunshine Coast
     
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,574
    Location:
    Canberra, Brisbane and Sunshine Coast
    Welcome aboard :)

    Best bet is to get a decent broker to crunch the numbers.

    The awesome thing about the Sunny Coast is that it’s in high demand with tourists during holiday periods.

    So if the property is an owner occ - you could rent it out for short periods during holidays (Christmas, Easter, etc) via platforms such as Air BnB and get a decent return. That’s assuming you’re comfortable with renting your home out and you have somewhere else to live during those periods.

    I look Coolum - in between Noosa and Maroochydore. Has a nice family feel to it and seems to be gentrifying.

    You could also pick up something in Tewantin for your budget. I just had clients purchase a nice home in a decent pocket of Tewantin for under $600k - decent block too.

    Cheers

    Jamie
     
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  8. RPI

    RPI Property Lawyer, Town Planner Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,528
    Location:
    Brisbane
    I would see Jamie Moore - he is an awesome broker and a Sunny Coast Local (at least he has been for a year or so).