Would this be a good strategy for first home buying.

Discussion in 'What to buy' started by jack0194, 7th Jun, 2020.

Join Australia's most dynamic and respected property investment community
  1. jack0194

    jack0194 Active Member

    Joined:
    3rd May, 2020
    Posts:
    41
    Location:
    Brisbane
    Question:

    When it comes to first home buying would this be a good strategy? Would it be a good idea if you put the majority of your focus on breaking into the housing market and starting the cheapest property possible? Keeping in mind this relates to buying new homes.

    Or should you be caring more about other factors? I should also point out that I'm single so I don't have to worry about a partner or children when making this decision.
     
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,260
    Location:
    Australia
    So buying the cheapest new property you can afford. As opposed to spending more time saving a bigger deposit.

    Whats an example of something you might buy as soon as you saved the minimum deposit?
     
  3. jack0194

    jack0194 Active Member

    Joined:
    3rd May, 2020
    Posts:
    41
    Location:
    Brisbane
     
  4. jack0194

    jack0194 Active Member

    Joined:
    3rd May, 2020
    Posts:
    41
    Location:
    Brisbane
    So at the moment, the idea is to save for at least the next 2 years which would give me just under 60k. Would it be better to look for something in the 200-300k range? Or something in the 300-375k range?
     
  5. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    10,222
    Location:
    Sydney? Gold Coast?
    Help me out a little here. What can you get for 200-300K that is NEW?
     
  6. jack0194

    jack0194 Active Member

    Joined:
    3rd May, 2020
    Posts:
    41
    Location:
    Brisbane
    Not sure yet. But keep in mind I'm in Brisbane, not Sydney and the only reason I mention new and not existing is that there always pushing new first home buyers to buy new rather than existing. I could be wrong but most of the time it works out cheaper too. The $200-$300k figure is purely an estimate, I haven't taken a proper look at the house prices.
     
  7. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    10,222
    Location:
    Sydney? Gold Coast?
    Your first port of call is to look at what is available for that price. I own in QLD as well, you know, and I’m positive you won’t find anything NEW for $200k
     
    craigc, Lindsay_W and Gockie like this.
  8. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    More like $400K - $500K range depending on location.
    The new vs existing working out cheaper, can you explain that a bit more? It's the first I'm hearing of it, unless you're talking about getting the $15K FHOG when buying new?
     
  9. brady87

    brady87 New Member

    Joined:
    7th Jun, 2020
    Posts:
    3
    Location:
    Tarneit, VIC
    One of the strategy that I'm hearing from my network is to find suburbs that are a bit behind than surrounding suburbs - i.e. undergrown. It might take some effort to find those pockets - but the idea is when the whole area changes (with gentrification) - those late boomers will eventually catch up as well. (Btw - is there any Melburnian here that has some insight on where these suburbs might be? Sunshine for example could be one).

    I've used this site recommended by a friend Suburb Insight Tool for Melbourne and Sydney suburbs - they are quite handy to find suburbs across a range of distances and budget - with investment insight, also Domain's suburb profile tool.
     
  10. jack0194

    jack0194 Active Member

    Joined:
    3rd May, 2020
    Posts:
    41
    Location:
    Brisbane
    Yes. I probably should have mentioned that. It would also include FHOG.
     
  11. jack0194

    jack0194 Active Member

    Joined:
    3rd May, 2020
    Posts:
    41
    Location:
    Brisbane
    I'm not in Melbourn, I'm in Brisbane.
     
  12. jack0194

    jack0194 Active Member

    Joined:
    3rd May, 2020
    Posts:
    41
    Location:
    Brisbane
    Yeah, 200k is a bit of a stretch. however just after I originally put this post up last night I did find this:
    Aquila Lodge - Eagleby | iBuyNew

    I wouldn't buy that though.
     
  13. jared7825

    jared7825 Well-Known Member

    Joined:
    10th Apr, 2020
    Posts:
    190
    Location:
    Qld
    Off topic but Basic Three bedroom H&L in regional Qld with FHOG can be had for just under the 300k mark, OP is in Brisbane though, OP might also want to change your location from what looks like an address to just a town or state
     
  14. jack0194

    jack0194 Active Member

    Joined:
    3rd May, 2020
    Posts:
    41
    Location:
    Brisbane
    I'm not in Brisbane city, Im technically in Redlands city.
     
  15. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    10,222
    Location:
    Sydney? Gold Coast?
    A one bedroom townhouse, is a far cry from a freestanding house.
     
  16. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    10,222
    Location:
    Sydney? Gold Coast?
    Yes, I'm aware of this, but I get the impression that the OP is interested in something nearer to the city.
     
  17. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    But is that the only reason you want to buy new vs old, to get the FHOG?

    Curious to know where do you get the idea that "it works out cheaper"?
    WHO are you referring to in the first part of the above? Sounds like spruiker talk
     
    skater likes this.
  18. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,260
    Location:
    Australia
    1 bed 42sq townhouse? Financing would be an issue here?
     
  19. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,443
    Location:
    Melbourne
    If they look cheaper, it is usually because
    1. smaller
    2. cheaper materials (does NOT mean any worse though)
    3. more "cost efficient build" (may not mean worse)
    4. it may not last as long (eg made of cardboard and polystyrene foam rather than bricks and mortar)
    Having said that, remember the people selling it to you needs to make 15%~30% profit (preferably much more) to make their project worthwhile, and are usually seasoned developers (unless you are lucky to be buying from someone trying their hand out for the first time).

    The Y-man
     
  20. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    possibly, but OP said they wouldn't buy one of them anyway.