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)
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!
@Scott Mardle , can you even get fixed interest rate loans for any significant length of time in Australia?
You ARE asking all the right questions though. All the best...
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.
That's good if you have already figured out the long term cost. My motive is same that have less cost for your home. All the best !