First time buying (Brisbane), any advice welcome!

4 Replies

Hey everyone, first time poster, long time lurker here;

I'm not sure is first home buying is really much real estate investment (but everyone has to
start somewhere) but i'm looking for some advice on the next path to take;

Everyone in the house I currently live in is moving out, giving me a little less than 3 months to decide if me and my partner I want to jump into the property market (including finding a property/buying and all that other stuff)... I don't feel like it is enough time to prepare, even tho I have been saving for this most of my adult life, 5 years.

So my options I see are;

1) Live at another rental for 6 more months, at higher rent, around $160 p/w each ($320 p/w total) - this would give me more time to research areas and find a better deal.

2) Rush into buying a property and hoping it works out. :)

The numbers look like this;
Purchase price - $300,000 - $350,000 - the maximum I want to spend
Savings - $50,000
Excess income - $400 p/w (effectively $500 p/w as current rent can be used)
Rent income - $150 p/w (my partner will effectively be paying rent to me)
Other possible rental income - $110 p/w (renting out a 2nd room)

Mortgage details;
Loan amount - $300,000
Loan period - 30 years
Interest rate - 5.48% p.a
Repayments - $391.95 p/w

So I believe I can afford it, just want to know if 3 months to buy is cutting it to short, or would renting for another 6 months after be better in the long run? Would there be many other expenses to take into consideration? I would also want to be buying another property in 2017 so would a standard 30 year mortgage be suitable?

Thanks for reading and any recommendations would be helpful!

There are many other alternative options like you can go with 15-year fixed-rate mortgage because Fifteen-year mortgages commonly come with an interest rate that's 1 to 1.5 percent lower than a comparable 30-year loan, saving [you] tens of thousands of dollars over the life of the loan





Thanks @Jean Howard I will have to look into that as it was with a variable interest rate. I figured borrowing over 30 years instead of 15 gives me about another $150 p/w to play with investing in other property, but it may not be worth it if it ends up costing me so much in the long term.

@Brent Coombs , I'm not too sure about that one, it does sound too hopeful.

Thanks