New to Sydney and to property market too

Hi All

I am new to Sydeny, lived in Regional NSW for last 20 years. We own a house there which is our investment house now.
We are currently renting in eastern Sydney as that is convenient for my daughter's and my work.
Rents are quiet high here and want to get into Sydney property market now.
I am close to my fifties.
I am not sure where to start.

1. Should I buy a place with my daughter who is 26. But that ruins her first home buyer's benefits. Or
2. support her to buy a land and home package in Rouse Hill/ Marsden Park or somehwere else where she can buy something under $750.
3. Let her buy a small 1 bedroom unit in Easter Sydney, keep FHB benefits and keep renting for a little while.

Any suggestions will be greatly appreciate.

 

Hi Jas

It would be better for your daughter to purchase in her own name. You will find it could get complicated purchasing with her. Also as you called out, it would be better for her to have the FHB benefits.

There are also joint and several liabilities issues - if this property became an investment property later, and your daughter wanted to expand her portfolio, then most lenders will take 100% of the debt as owed by her with only 50% of rental income attributable to her.

When you say support her to buy a house & land, what does this look like? Is it like gifting a deposit?

Given you live in the East due to proximity to work, how will moving to the North West impact your travel time?

I wouldn't go for a 1 bed unit, just to access FHB benefits. What is the supply like for these where you will be purchasing? Chances are these may stagnate for a while depending on where you are buying.

 

Thank you so much for your reply. yes I am also afraid about the complications after the purchase with my daughter.
Yes I was thinking to give her some money as a gift and use the equity of my existing house as it has no mortgage on it anymore.

I think 2 bedroom units won't fit in her budget. If she buys 1 bedroom unit then I might still continue renting and she can live in the unit, it might be bit inconvenient but later on it can be her investment property if she likes.

We were thinking to commute for a little while and then make it as an investment property and rent again closer to work.

There is a possibility to gradually work around where we move but very hard to predict in these circumstances.