Hi, Before we get into this. I would prefer advice from people with actual recent experience. NOT " I bought my 2000m2 property 40 years ago for a pie and sauce and…" or "I don't own a house but…" please no keyboard warriors, I know I am asking a lot OzBargain but please.
Ok, without any further ado.
So my goal and theme for this year is to move into my own home, or at least have it well on its way for next year. Here is my circumstances.
- Age: 22 Years old
- Marital Status: Single
- Income: $130000 Per annum
- No debts and squeaky clean credit history.
- 2 Children (Not mine)
- Location: Western Australia
- Savings: None, Took a break to deal with health related issues (Weight loss and MS)
Currently I rent a 4/2 house about 40 minutes south of Perth in Baldivis, rent costs me $375 per week and stuck with a few other bills related to the estate and property it's really closer to $410 per week. (Yes I am aware of rent prices being even worse on the other side) I realized that is a lot of money (Nearly $21000 Per Year) So, facebook's ads have convinced me to build a home. BUT being the poor excuse for a stable functioning adult that I apparently am, I have decided to NOT take the "pros" advice at face value and put my financial future and trust into your "competent" hands.
Progress so far.
So far I have talked to 3 different home builder companies, to get an idea and see what's needed and available. I have got an idea of what I want and a rough idea of a budget ($350000). I have been ok'd by a bank to borrow pretty much however much I want (Upto about $700K) and even looked at some available blocks.
The Plan/s.
So I have two current plans, one which seems to entertain older folks and one that I have been told is the best choice by home builder companies and that I will be a kazillionaire before I know it.
Operation My-shower-leaks-and-the-carpet-smells-like-farts: Buy established, There is a few older established houses located in nearby suburbs that sit on larger blocks of land (1000m2) These houses are older (like 20 years old) but situated in already built up areas that offer many wonderful conveniences. These are also cheaper up front, as they can be had for about $230000. Plan is to renovate or rebuild after mortgage is paid off.
Operation Lifelong-Debt-But-Least-I-Look-Rich: Build first home on the cheap ($350000) and start journey into the ageless tradition of providing rentals and voting for the liberals for that sweet sweet negative gearing. But in all seriousness, Build a 4/2 on ~400m2 of land. Plenty of quote unquote "massive" 400m2 blocks that can be had for around $150000, both near me in established areas or half hour north of Perth in new estates. Yarloop is a good example of north, and after seeing the area in person it seems like it will expand rather fast bringing possible value to the land. (already have a business area being built)
So, A or B?
If A:
* Got any advice?
* What are some examples of a bank I should borrow from?
If B:
* Everything
* No Seriously how the hell is anyone meant to learn this crap, should really be taught this in school.
* Is 450m2 too much? should I really get a house sized block? (Save $40K but lose 75m2 space and buy a 375m2 block)
* How loans work and what bank stuff I should look for when choosing where to get my loan
* Builder Recommendations
* Location
* How long I should live there before selling or renting out
Obviously I am going to need to get a deposit together, ignore that. Just assume I have "ways". (Ways include but are not limited to abusing land rebates, inheritance and the first home builders rebate if taking that route)
So… Go nuts everyone, tell me how I am wrong and the only suitable investment is clearly Holden Commodores.
House must be a 4/2 so I have a room for the baby sitter as my job requires me to be away from home for extended periods. (Yes, It's FIFO)
Then I will not be providing a response to your request.
But this contradicts your initial request.