PPOR in Goulburn, NSW for 1 yr

Hi everyone, I will be relocating to Goulburn for 12 months for job placement (rural transfer) starting in February 2018. I am thinking of buying a house/ unit in Goulburn within 300-400k and live in for the job period. and make it investment property by renting it out when I move back to Syndey in feb 2019.

the plan is to utilise the opportunity to buy anything under 450k in a good area (+_ taking advantage of the grant if buying a new property) as we can actually live in for 12 months so no worry of stamp duty and it can become our IP a year later. this is something we would never be able to do while living in Sydney.

Background:
-DINK, work in health care
-4 yrs in Australia (newly become citizens)
- earning $6500 (hubby) & $8000 (me) take home monthly (have around 70k savings)
-currently renting in Sydney, will be back in same job after 12 months and will rent in Sydney again
-no other investments/ assets. But repayments wont be an issue (currently renting 600k/week in Sydney)

future plan:
-aim is to keep this as IP for 30 40 yrs
-we dream to buy a decent PPOR in Sydney at around 2019/2020 depending when my income rises after post-graduation
-i am aware that Goulburn prices are steady and at baseline and its unlikely that I will be doubled in value in 10-15 yrs

Advice needed:
-what type of property should we be looking eg (old units 2Bed1bath worth 250k vs old houses 3bed1bath 375k vs newly built house 3bed2bath 475k)
-any benefit of buying old house with 500m2 plus land size ? any subdivision potential in 15/20 yrs
-which location , what about the new suburbs 7min drive to city and near university


please give me some ideas
never been to goulburn before, no idea of the good areas/ vs bad areas

TIA

 

Suggest a tad bigger - closer to transport / infrastructure with a very long term view of future development

 

@Mindplay Goulburn is a great town, I pass through often I am looking for a client out that way at present. If you can afford a house on a biggish block you can use State SEPP for future GF even if dual occ isn't an option. If it is dual occ compatible then even better. If you want better than average performance don't be afraid of a cosmetic reno or chasing that dual occ. Agree with the twins, go as big and as central as you can afford.

 

If you work in health care check what FBT benefits can be accessed. You may be able to pay the non deductible loan using fringe benefits up to a limit

 

If unfamiliar with the area a local BA may be a good consideration.

Look to get land you can add value to as it is land that increases in value overt time and adding doors increases rental income.

 

Consider whether it might be better to rent there and invest elsewhere. What is the past growth rates like?

 

Hi geoffw, thanks for your inputs. Will I be able to deduct the interest after 1 yr when I rent it and move out of the area? I was planning a minimal deposit loan with a linked offset account to put extra amount of money in it?

 

Hi Terry_w, thanks for your comment. Investing elsewhere would mean buying a property with stamp duty. Do you think living in this property for 1 yr and then renting would be beneficial by any means?

 

Yes tax will be deductible when you start deriving rental income.

Minimal deposit makes sense, specially if this is not your long term home, and park any additional funds in the offset account - and save up for your future owner occupier property, and also maximise the overall tax deductible loan when you move out. Having said this, with a Loan to Value ratio of over 80%, you are looking at making principal & interest repayments.

 

Only if it would increase greater than other property that you could have bought instead.

 

I will have to do the calculations. Thanks for giving me some homework to do before coming to a decision.
I am a medical professional so hopefully i will be able to get the LMI waved. would tax deduction from 90% borrowing be and 100% borrowing for a 350-400k property be very significant?

If I rent in Goulburn for 1 yr, the repayments will be similar if i buy (+ council rates and waters etc)

 

I think it is a good idea and a better option than renting. Be mindful the growth will be slow and it will need to turn into a cash flow property. As long as that fits your plan then no worries. Perhaps do some smart/economical renos before leaving and find a good property manager and build a relationship.

 

Hi there, would 500m2 size land with a old 3 bedder be a good option vs 700-900m2 if I am looking at future development? Within 3km of CBD?

 

Where? In Goulburn? You will need to check the council rules and see what is happening in the area.

 

HI thanks for your information. I am still in the initial planning stage and not sure that I would be able to afford a BA at this point. I am also not sure how much a BA cost for a property worth 350-400k!! Thanks for your info

 

Thanks Pau currently i am salary packaging car loan. No idea what is fringe benefit but I will find out. Thanks

 

Iv'e read something about the Sydney-Canberra corridor with Goulburn benefiting it?

Sydney Canberra Corridor Regional Strategy :: Wingecarribee Shire Council Online Customer Service Centre