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VIC New to VIC - PPOR options?

Discussion in 'Where to Buy' started by Jonno Yeo, 2nd May, 2016.

  1. Jonno Yeo

    Jonno Yeo Member

    Joined:
    13th Jul, 2015
    Posts:
    11
    Location:
    Melbourne VIC
    Hi all,
    Researching to purchase my first PPOR in the next year or so. Currently renting in Richmond/Abbotsford, would LOVE to live here however way priced out. Maybe in the future!

    We're a professional couple in our mid late 20's, with a budget of ~ $650K.
    Have a $100k deposit saved up atm, and still saving for an "emergency fund" as well before plunging into the mortgage world.

    Must be:
    1. ~20min from Bulleen however do not want to be much further east from Bulleen.
    2. No apartments, want a backyard/courtyard of some sort for dogs. Townhouses are looking to be my only option?
    3. Near a train/tram line - Max 15-20min walk
    4. Looking to stay for +5 years, willing to do minor renovations
    5. 2 Bedroom+, must have garage, 2 bathrooms preferably

    Also being new to this, would i be best staying with my employee (Big4 bank) for a homeloan? or going with a mortgage broker etc. I currently have access to -1% discount on home loan variable rates, and only require 10% deposit for a LMI waiver for a PPOR (the same for an IP actually).

    Have been looking at Preston/Coburg/Heidelberg so far, however $650k doesn't stretch far!!!!
    Looking mainly north/north east/east due to requirement of being close to Bulleen (partners work).

    Any help appreciated, especially with the 'stay away' areas as i'm fairly new to Victoria.

    Thanks all.
     
    Last edited: 2nd May, 2016
  2. EN710

    EN710 Well-Known Member

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    18th Jun, 2015
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    2,162
    Location:
    NSW
    The LMI waiver is very enticing. I'd still talk to a broker just to check borrowing capacity and see what's out there.
     
  3. melbournian

    melbournian Well-Known Member

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    1,331
    Location:
    melbourne
    Go to Reservoir or Heidelberg Heights. I purchased recently 15 min walk to Latrobe Uni but as an IP.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    18th Jun, 2015
    Posts:
    2,107
    Location:
    Melbourne, Nationwide
    You've only got a 1% discount from your banker? Honestly that's kind of disappointing at the moment. At 90% ANZ and NAB are easily doing 1.15%, CBA & BoM will do 1.3%. Despite this, the LMI waiver is usually worth more than a better interest rate, so go back to them and ask for a better deal.

    $650k isn't a great budget for the Eastern suburbs, but it should be possible to find something suitable. Keep in mind that many first home buyers have an upper price point of $600k (due to grant restrictions), so offering more than $600k will eliminate a lot of competition.

    Heidelberg West is a great place to start but you'll be looking at an older and likely run down house. Good long term investment though. If you look to the north of Bulleen you might be able to find something decent in Watsonia North or around Eltham. Unfortuantely any other direction from Bulleen (west towards the CBD, East or South) it will be a long way before you can find much that suits the criteria outlined.
     
    Mathew Tran likes this.
  5. Chrispy

    Chrispy Well-Known Member Premium Member

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    21st Jun, 2015
    Posts:
    300
    Location:
    Melbourne
    pianissimo likes this.
  6. melbournian

    melbournian Well-Known Member

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    2nd Sep, 2015
    Posts:
    1,331
    Location:
    melbourne