Hi Folks,
I need your advise to decide whether to buy a self occupied property or an investment property in Sydney based on my current situation
My current situation
-> Married and 1 kid(3.5)
-> 31 years old
-> Settled job
-> Work in Sydney CBD
-> Gross Salary around 130K per annum (+/- 5K varies with bonus)
-> Wife not working
-> No Loans
-> Have a deposit of 50K and can borrow from friends about 20-30k
My criteria for a self occupied property
-> Less than 30 mins by train to Central
-> Close to transport
-> 2 bhk unit
-> Live in areas where they are top 30 primary public schools in Sydney (currently considering Artartmon, Carlingford as the schools are good). My kid needs to go to school in the next 1.5 years.
I currently cant afford to buy in Artarmon( 2 Bhk 700k+) or Carlingford ( Overpriced atm with no good public transport takes more than 1 hour and 20 mins to my workplace).
To get in to the property market, I'm thinking to buy an investment property in Western Sydney suburbs in Quakers hills, Mount druitt, Walhan etc where I would get a decent size house for around 400K and rent out. I'm hoping to get a rent about 350k per week for the investment property and the property price would appreciate in the next 3 -4 years. I hope to use tax benefits from negative gearing and depreciation too :)
I would then plan to rent out in the top school suburbs where its cheaper to rent. 550 in Artarmon and around 500 in Carlingford.
What do you suggest in the current market in Sydney
- Save up more and buy a self occupied property after 2 years?
- Go for the investment property now ?
Thanks in advance!
It's easy
Do what the wife says.
Even though, I did it the other way, I'd buy your house first. With your wage, you should be able to borrow big bucks.
Then 2 years reassess.
Your 50k deposit is pointless if you have an investment property, as the bigger the deposit the lower your interest costs, the lower the deductions. You want to borrow the full amount, interest only with an investment property
Good LUck