Need urgent advice with a property purchase

That's the median for 2 bedroom units not for one bedroom (sample size is too small for statistical reliability), so we're not comparing the same thing.

@amipatil - most older 1 bedroom units are renting for $380-420/wk not $500/wk (which is for newer units). So there'll be a bigger hole in your pocket.

 

I should add this was also based on a 30 year loan at 4%.

 

It's the median price for all units, but very close to the price of a two bedder clearly.



{Note from mods - general discussions about 1BR units moved here: Investing in 1BR units}

 

Ami, you got a wife and two kids and you whacked a deposit on a ONE bedroom unit. Give yourself an uppercut. No, that doesn't sound right. Give yourself two uppercuts.

Kids, even at a young age, want their own room. I was 6 months old when I started pestering my parents about my own room so that I could watch some dirty VHS tapes in private.

 

Thank you , this is reassuring .

 

Thanks for all your help and informational conversation and opinions.

So I'm going to back out of the purchase as I'm not confident it's the right move to make.
I'm going to try and rent a 2 bed in Epping, as previously mentioned that will see me through for the next 5 years.

I'm also going to look around for a capital appreciation opportunity in the mentioned price range $632k.
The "when to purchase" is going to be a bit of a mystery, but would anyone people be able to give me say 10 suburbs to put on my watch list so that I can focus my attention?

As mentioned I work around the city and don't really know the outer suburbs where my money might be able to make the best capital growth, nor do I know the other states which might be worth looking at.
I'm not looking to live further out than Epping, so this will be an investment only purchase and as mentioned I'm predominantly looking for capital growth and don't mind subsidising the property a little to achieve that, but don't want to be breaking the bank with my current family circumstances.

Am I asking the right questions?
Should I be considering anything else?

Thanks

 

Great. Just by asking the questions you are on the right path.

Hang around here and keep learning. Good luck!

 

You are very welcome amipatil.

I had taken the time to post a few other comments here relating to the thread that I thought you may have been interested in. Unfortunately they have been deleted for some reason. I am terribly sorry about that.

Over the coming weeks we can look at some examples that may better suit your situation. And say compare it dollar wise against ownership or ip or both and see what looks better for you. I am a bit distracted right now but we can look at some examples over coming days.

All the best.

 

Thanks @Clyde

 

That's ok.

Have we got that contract terminated yet ?

How is your wife about everything ? What are her thoughts ?

 

Yes, the contract is terminated ( letter of rescission sent by solicitor to all parties involved )
Wife is not happy off course - not because I did not buy the property but because I did not think before acting quickly !

 

Ok , well done.

And at least your wife is unhappy for the right reasons. She will get over it.

 

Short term unhappy for long term happy. That's a win

 

Decide first where you want to live, where to bring up your family, then tackle investments.
Seems you preference was the latter yet for the first choice, seems odd to me?
I wouldn't rush in Sydney for the next 5 years so make a plan first what you want to achieve from IPs as opposed where you wish to live your home (there is a big difference!).
Read and educate yourself a bit more.... meanwhile.
Best of luck in what you decide!

 

And it's very easy to loose money in real estate if you run in too early without any DD ( some people).
Damned if you do and damned if you dont'!

 

Here is the latest prices for Epping Amipatil. Perhaps keep track or keep these for future reference and comparisons.

 

And the rental prices.

 

I punched in some criteria for properties around Epping. I did this for what I thought should be your goal Amipatil, and also based on the budget you described earlier.That goal should be to house your family as best you can without breaking the budget and hopefully building wealth through that property for what ever needs may be required in future, as well as for the security of your family. And while this should be the goal, the best time to actually buy could still be a year or two, or even more away. Things are not looking so well. So for now we will not focus on that too much, but focus more on what you should do when the time does come.

I did not find a great deal in the property search. But I found something worthy of mention to discuss and to get the ball rolling.

Now you said you did not want to live past Epping, but one property that showed up in my search criteria was Carlingford , which is the next suburb. Now this property would suit your housing needs. And it may be next door to a police station or railway I do not know, but thought it worthy of mention. It would be affordable and not break your budget with growing kids. The older kids get, the more they cost. Prior to school,kids are cheap. When they start school it steps up another gear, and when they hit high school, it steps up another two gears. Sorry to scare you.

And while this particular property may not be ideal to you as there is bedrooms on two floors, it does look like a much better overall buy than your 1 bedder ip or what you could do with it by comparison. Even as an invesment this property going by rentals I looked at would realistically rent for $550 or possibly more. But this looks good enough for your families needs for now, and sometime into the future if need be.

The asking price may be realistic for today I am not sure. They may be asking more than it is worth. Looking at the price falls shown earlier for Epping, there may be some good discounts moving forward.

Here is the property, some others can tell you why it is better than your 1 bedder deal and perhaps tell you what is not so good about it. I will talk more about things tommorow, it is getting a bit late. All the best.

21/2b Coleman Avenue, Carlingford, NSW 2118

 

I'd personally much prefer this to the Artarmon one.
The Carlingford train line sucks though, so you'd want to be using the Epping train station, which is only a short drive anyways.

 

Also @amipatil ...can you move? I don't know how your career or social network would handle it but Adelaide, Brisbane or Perth will give you a much better property than Sydney will.....for half the price.

This isn't an option for a lot of people but it is still worth asking the question.