Hey astute members of the OzBargain community.
First time poster.
Will be graduating next year and start a full-time job at an annual salary of ~ $60,000. I've got $70,000 in savings. Would like to get a loan and purchase a dwelling in a nice suburb. I'm single. No current relationship. Torn between a house and an apartment. Some people say buy a property on a piece of dirt (house/town house) and don't bother with apartments.
Would appreciate any advice.
House - more chances of appreciation. Drawbacks - for something affordable, quite far frm the city and frm all the temptations a young un would enjoy.
Apartment - need to tread carefully as there potentially could be a glut esp in the inner city areas. Less maintenance, easy to lockup if you want to travel, riskier for capital appreciation if u need to offload it earlier on.
Also if u hv just graduated, yr opportunities may not lie in Melb. Nowadays one is almost expected to be mobile..and having a property will tie u down somewhat. If u do decide to relocate for work, consider getting a property that is easier to rent,
I would work at least one year before putting down a deposit for property.
You've done very well to save that much already, but I think a few months in your new job might be wise before locking yourself in. The banks would probably need an employment history for a big mortgage as well. I think you should state your price range for better feedback.
Are you going to live in it ? or is it going to be an investment.
Back in the day a unit would cost 5k, and a house would cost 40k. That was before property was seen as an investment vehicle.
If you are buying it to live in, a house has many advantages over a unit, you own the land, you control the building and the space. Noone can tell you what to do in your own house. You do not have to deal with other people making noise or kids crying or loud music at 2am.
A unit reduces your costs associated, the buildings maintenance and upkeep is split between all the owners. You do not actually own anything, you dont own the building or the land it sits on.
If there is a property crash in the future, units will drop significantly more than houses imo, as was evidenced in the gfc. If you were looking to buy a place in 2007/08 units dropped about 10% sometimes up to 20%. While houses didnt drop at all.
If you are buying as an investment i would go for a unit, living in it then a house.
OP with that wage and deposit you can't afford a house in a nice suburb yet. Wait a few years, save up a 20% deposit, (so $200k), then look again when your wage has risen.
Good on you for saving that much at this age.
If you're saving habits remain, I reckon you'll be able in 2-3 years to have a solid foot in the market. 2 years will give you time to settle in your job and decide what is best for you in what area.
Good luck
You could also buy a house further out where it is more affordable, rent it out, and rent yourself inner city.
When you are dealing with Melbourne housing costs, it is difficult. I would avoid buying an apartment as they won't appreciate as well as a house and you are stuck with everyone in the block; and that can be a lot of people nowdays. Have you looked into Villa units, or equivalents. There are also shared areas but they are more like small houses.
I'm increasingly grateful that we were able to buy our place during the 90s. Nowdays people have to be out in the sticks to get anything suitable or buy into the slew of apartments that are springing up - some of these are shocking quality and I would be too scared of that lottery, given the cost of an apartment.
best of luck with your search.
Thanks everyone.
Indeed buying an apartment, especially one of those newly-built, is no longer an option for me as I keep being cautioned by people and the media:
http://www.theage.com.au/victoria/melbournes-faulty-building…
http://www.theage.com.au/victoria/mould-and-fungus-push-resi…
The alternative would be to purchase a 2-bed-house in the outer city (Cranbourne, for example), rent it and use the rent to pay for my rent somewhere in the inner city area. Any feedback?
It depends what you like, have you tried both? I'm a city person but hated living in a box aka apartment, I also hate the neighbours, the kids and people. The garden's also small or NA. Do you plan on living there in the long term? Will you have a dog? I much preferred a house with a garden, as I work from home, and the neighbours far away from the fence.
With renting out a place, you need to consider if you'll always have people renting.
Understand what you can afford.
with what details you have provided you wouldn't be able to afford much in a 'nice' suburb.