Strategy Help

Hi Guys,

Just want to say first I really appreciate this forum and huge amount I have and will continue to learn for it. My partner and I are a couple years out of Uni and now looking to buy our first IP, we don't own a PPOR. We love where we live in Sydney and can not afford a residence here so we will likely be rentvesting but if the solid strategy called for us to be O.O thats fine. We have about 100k savings, and about 200k income (this will go up in the coming years). I don't know our budget yet, taking the first steps now.

The biggest hurdle we have is choosing the route to go down. We read so much about different strategies and successes trying to best learn from them, but are so hesitant as we know we don't know a lot and fear we could go down the wrong road, but I don't want to get stuck and never take the plunge. Looking for help about what strategy could work for us and where we should focus our time.

We have been looking at few different ideas.
>Buying an older solid place in a good location in Melbourne where we know we can reno to add value such as 2/49 Chapman Avenue, Glenroy, Vic 3046.
>Buying a house or unit in Northern Melbourne e.g Epping/ Lalor area.
>Buy a villa unit somewhere near Paramatta like 2/50 Alexandra Avenue, Westmead, NSW 2145.
> Just keep saving (save about 3-3.5k per month)

Are there any big red flags with these ideas that I am not educated on yet? Options that I should look at?

I understand that B.As can be hugely beneficial and will most likely contact one when we decide.

Thanks for the help!

Colour

 

Why interstate for a reno?

First step should be a mortgage broker to determine borrowing limit, then decide how much you want to spend.

good situation to be in.

 

Firstly congratulations on having savings of $100K- very healthy indeed and a terrific cash start for uni students We certainly don't have many clients who come to us with $100K after just finishing uni so that's quite an achievement!

Agree with @Trainee in that you need to get your loan in order so you know what you're spending, as the first step. Secondly, sit down and work out your goals and medium to long term plans. If buying a PPOR (principal place of residence) but you can't afford where you currently live, can you explore other nearby options or those suburbs with transport links that would suit? Also keep in mind the current FHB schemes on offer particularly the very attractive stamp duty exemption if buying up to $650K (and sliding scale discount up to $800K when it ceases)
First Home Buyer Assistance scheme

If a PPOR isn't going to work for you then do some more research around your budget (when known) and your cashflow position before jumping straight into an investment property. There are several options out there but much will depend on your individual circumstances, capacity and preferences (are you a renovator/developer? do you want a set and forget? how much rental yield do you require? etc)

Lots to learn but welcome aboard and keep asking questions!

 

Congrats on your position!

Glenroy has a lot of subdivision going on and even a new set of townhouses going up on Chapman Avenue. You would have to add some more value through renos on that place to maximise returns but overall you have found a great developed spot next to a Zone 1 train station in Melbourne.

Going down the house path, Melbourne has a boom in housing in the North but has a lack of infrastructure to sustain this. However the 'new arrivals' continue to absorb this as long as it is positioned in great school zones and it is close to stations. I know a couple who bought 8 years ago in the North west (Taylors Hill) at 350K and have now been valued at 900K.

I'm not familiar with Sydneys current Bi-polar market.

Delay getting a PPoR until you both know you are in this together and you will have more clarity in what future holds in regards to future job and children. What do you value most right now?

 

Thanks for replys and the good words!

First @Trainee We are from Melbourne, and my thinking was that Melbourne would be less expensive in more desirable location vs Sydney, but if a reno interstate is ill advised (especially for those inexperienced) definitely noted.

We have taking some suggestion from other threads here about good mortgage brokers, will begin that process very soon.

Our long term goal like many people is to build wealth for our family, but medium term goal is a family house in 10-15 years (1.5-2m). Really don't know how achieve-able that is, and getting . good team will help us achieve that goal.

@Jacque Yes, there are so many roads to go down, I love the idea of a side hustle (have a few) so I would always want to be involved and working/ learning.
@mytwocents Ah yes, I hadn't given enough thought to school zones, thank you!