Property Advocate?

Finally I have a deposit of 60k. It's taken me 6 or seven years to save it. Am on a low income.
I've never bought property before but I have a full time job. I can get a mortgage so I am considering getting one. Full time contracts can come and go.

I think it would be useful to have someone with experience to help me assess properties.
But the ones I have found on the net charge 6k or 7k.
In the end I have to make the choice but it's useful to have experienced voices. Am considering upwork or some other freelance portal to hire someone at an hourly rate to consult with. Looking at Ballarat, other places in Vic.

Any thoughts on usefulness of a property advocate? Thanks Kindly

 

You want to talk to a mortgage broker to confirm that you qualify for a mortgage. Overseas work can be a problem. Also find out about first homeowner grants.

What exactly do you expect the person you hire to do? Building and pest inspection are separate. Usually a buyers agent negotiates for you and recommend areas that fit your criteria.

How much is your budget?

 

Thanks for replies. I have a broker. With shading and what not i still can qualify. 128k is max I can borrow, with 70k I am around 190 buy price. Looking at anything between Ballarat and Hamilton. Earning in RMB. In terms of what I want them to do, point out anything that will cost me money where I don't have to spend it. Any advantage I can have pointed out to me would be appreciated.
Example, knowledge of any new infrastructure projects that might shed light on a purpose, other issues that affect a buyer. There is one place I found that is divided with a wall, for example, so I could rent one side out. But just someone to give me feedback as I have never been through it before. It's the most money I will ever spend in my life I guess.

 

I assume you already took a look at my post on Ballarat at Ballarat Tip: The Capital of Western Victoria [VIC] for infrastructure projects, ratings on suburbs, etc.

Also, some updates on infrastructure projects at Ballarat Tip: The Capital of Western Victoria [VIC]

What's your goal and plan for your investment journey? What made you pick Ballarat in the first place, given the fact that $190k won't get you much in Ballarat, except some from the infamous triangle.

 

To be honest doubtful that anything for 190 will have much potential unless you get lucky (mining boom type), will probably need work or not big enough to rent out rooms.

How will you service the 10k or so a year that this will cost you when you are in australia? And is it rentable if you are still os?

 

I get this is a property forum.

But gna put it out there.

You may want to focus on increasing income.

Buying one low end property is a great way to get nowhere. The real strength of real estate comes from leverage of a large portfolio.

Now, I don't know you, your goals, or your risk profile.

Sub-leasing may be a worthwhile strategy. Also there was a couple that earnt very little as cleaners yet built a sizeable portfolio. Canadian from memory. @Simon Hampel may remember their names. Perhaps read up on them.

The other alternative is to learn. Be the doing partner in a JV. Do all the leg work. Will take time to educate yourself. Very tricky to be the money partner in a deal without funds. If you're good at networking, be the middle man. If you suck at it, learn the skill.

You really want to learn strategies to maximise your dollar, and increase income. Will pay off much more in the medium to long term.

 

Thanks. What is a JV?
I guess I see property as having a place to live. There are too many fees to justify it as an investment in the context of my life. With extra money I would go back to study or putting money into education. It's a good investment because nobody can take it away.

But If one has to buy property, I know there are ways of helping, like having a granny flat you rent out, and I agree the focus on increasing income is what I should be doing. Thanks for that.
Australia can be a very hard place to get a full time contract. I have one now, can borrow 128k, so I think I may as well.

 

I appreciate these replies, thank you. Goal to have somewhere to live. Renting is now at a point where buying is cheaper, in my view ( at where I am financially ) Renting is really unstable now with the way the housing market is. Each time I have to move it costs me. I can live in a rooming house for 150 a week. paying a mortgage on a small house in rural vic is about the same.

My salary in Australia is about 40k, and I wasn't making ends meet.
My goal and plan is to have a place to live close to labour markets so I can increase income or just get work.

I am considering Maryborough, ( on a train line ) - only 50 mins to Ballarat by train.

15/318 Lyons Street South, Ballarat Central, Vic 3350
Am considering this. Easy to rent out if needed.

I found a terrace house not far from Ararat which has a wall in the middle and two titles. One side is rented for 150 the other 130. I thought I could live in one side and rent the other out ( tenanted currently ). But I understand such an asset is going to be very difficult to liquidate if I go into it and Ararat has less work.

10 Beaufort Road, Skipton, Vic 3361
Skipton I like because there is always water. I can grow some food to offset the cost of living. There is a new solar farm going up near there.

Valid to be careful about old houses as tradesmen in Australia are very expensive.

I am considering a central point, like Lismore. It's 1 hour a way from Warrnambool, Ballarat and Hamilton so I can maximize my chances to get work. Take the savings on the house and put it into a decent car.

Hae family in Hamilton That's why thinking something on that train line.
Basically I need somewhere to live in Australia as all of my family live in small flats now. Educating myself about property is my responsibility sure. Trying to do that. But I honestly think better to hire a helper in this regard.

 

Just to clarify a bit on your situation. You are currently in China, but planning to come back to Australia and buy a place to live somewhere in regional VIC.

 

Why Skipton? It's a town of a mere 600 people. Such towns won't do well and is deemed to decline further. What good will it do to buy here?

You mentioned Ararat. I think it's a much better bet. It is on the train line to Ballarat and many other towns. With the completion of the dual carriageway in Western Freeway in about 3 to 4 years time, it will be just 50 minutes by car from Ararat to Ballarat and around 1 hr 45 mins to Melbourne - not too far in my opinion.

Ararat is also nearer to Horsham, Stawell and Hamilton compared to Skipton and not too far to Warnambool too. The windmill project north of Ararat and it's proximity to Grampians should make Ararat a good place to find jobs. With 8000 inhabitants, Ararat is also a much more decent town and more livable than Skipton. Chances of capital appreciation is definitely higher here. With Ballarat getting more and more expensive, further towns like Ararat will be the next in line to experience growth.

More importantly, it is still very possible to buy a livable house in Ararat with a budget of $150,000. You won't be able to get anything close to this in the other bigger towns closer to Melbourne.

I am not a proponent of Ararat. I am recommending here only when you compare against Skipton.

 

Last I heard it isn't even possible to purchase flood cover for a property in Skipton any more, unless you can afford a $40k+ premium per annum. This is due to Skipton getting smashed by two floods in a very short space of time, thereby increasing the risk to the insurer.

 

Thanks Xiao and JacM

I take your points. Because I cannot spend a lot, am looking for any way to get an advantage with what I have. Ararat is good, as you point out.
If I do go rural I want to get something that has energy input if I can. Solar, water source, bore, or just access to a trainline. Just trying to max my advantage. Thanks for the heads up about insurance in Skipton Jac.
Stawell and Ararat are getting along, as you suggest. Thanks for your input and time for a reply.

 

Hi Naing
Yes. I could never seem to save enough. I had palliative care with one parent and it set me back a few years. So I packed it in and moved here. I make double here what I can in Australia. Planning to come back in the next two years. Buy a place less than 45 mins - an hour from a major hospital.

 

Unit 1 & 2/50 Wakeham St, Stawell, Vic 3380

 

Say you use all your savings and buy this. How reliable is your work that you can pay this off long term? You wont have a buffer.

Any way to increase income say by teaching in the hinterlands?

 

Thanks for that. Hinterlands? Does that mean the wimmera?
I think I can get work in Horsham or Ararat. I teach adults in vocational ed, or can do aged care work. Is buying land a better idea at this stage regionally? There are some blocks in Ararat for 50k, and Stawell. Then build little by little as money comes in.
I'm aware that there are many fees and costs in buying an old house regionally. It may be that land is a better bet.

 

Was thinking working in china hinterlands might have better savings.

Look a property loan is 25 years. Needs a long term steady income. Pay it off faster with pay increases. Long term the cities go up. Regional areas can fall long term.

Without any of that, are you really sure buying a place is a good idea? What if you have to move to where the work is? Having property doesnt always mean stability. You cant focus on buying something just because its always been out of reach. Owning a property isnt like in the movies where you stake a claim and build a farm.

Things would be a lot different if say you had a job with average income (60k+?), more job security (or at least transferrable), a partner or more savings.

 

Thanks for your advice. You are making some good points. I really got tired of moving each time a house was sold and rent increases without justification. It only takes that to happen once or twice and it can really throw you out. Where I live in China I can save pretty well. 60k a year and I can save at least 3-4k a month. ( but as you say, it's not transferable ). Most importantly, lots of accommodation options. Anyway, If the repayments on a mortgage are only 160 a week, I can do it.
15/318 Lyons Street South, Ballarat Central, Vic 3350
Something like this that is central, close to sources of work I had in mind. It's not an ideal place to live but ..... could be worse.
t's more or less a way of controlling my rent to prepare for when I go back to Australia.

Thanks again.

 

Your rate of saving after rent is way ahead of the markets you want to buy into so it doesn’t make sense to buy there. If you fail to increase income, as some have suggested you do, five years with your $3,000 a month and your savings put away in a LIC/ETF will get you a far better property investment in a major regional centre. Keep cracking away at it I think instead of jumping into something that particularly with your low income the transaction cost of fixing the mistake may be unbearable.