This afternoon we drove past our potential new investment.
It's going to be a brand new 220sm one story free standing home comprising of 3 bedrooms, 2 bathrooms and a single garage. What made the property attractive was not only is it a brand new free standing home but all the inclusions included with the price. Extras which you would normally have to pay on top for such as the driveway, fencing, landscaping and blinds. It's a ready to move in home in an ideal location of the suburb and believe we can get premium rental and resell value for the property.
We are taking advantage of the no stamp duty the government is offering to NSW home owners for any new homes being built under $600K or land purchased under $400K. This will exempt us from paying for up to $40K worth of stamp duty.
At this point in time we're not planning to move into the house only because its so far from our network of support people who are helping us look after Eli.
I feel this purchase is a sound investment especially for the price we purchased it at and it's going to strengthen our financial portfolio. I've always believed in smart investing and making well calculated decisions not just going with the trend. My approach to property investing is to purchase decent, not expensive homes that will provide strong rental income and has the potential to make profit when we come to sell it.
Another bonus is settlement isn't until the completion of the property which isn't scheduled until the end of the year. What that means is we don't have to pay anything except the 10% until the home is complete therefore we can take advantage of securing the property now at the price we negotiated at the time without having to pay the banks back just yet.
I see us keeping this property for 5+ years and just sitting on it for a little while until the property market picks up again or the area continues to grow, hopefully increasing the value of the home.
Now to find a home for us. We're so undecided as to what we want to do. I don't mind renting however renting is so unstable at time. I was made well aware of this reality this week when my sister was given her 4 weeks eviction notice from her landlord. The reasons for the eviction is unknown however whatever the reason is its within contract grounds.
Do we want to buy around our parents? My parents want to sell their home and move between states or countries in the colder months so then what's the point of staying in the area if my parents aren't around for support? I also don't want to stress either parents with the expectation that they have to be so involved with raising our children - they've done their time and I want them to enjoy their retirement period, they deserve it.
Do we want to buy closer to work? The 1.5hr each way commute to work is killing my life. I know the M2 road works will cease in a year and in 10-15 years time there will be a North West train line. But how much time will I be saving anyways? Besides being close to our families we do live in an ideal location. Good schools, family orientated, people within the same salary bracket. C'mon lets get real the homes in this area aren't cheap. It is assumed a certain salary amount is required to even get approved for loans to buy homes in this location. So it is a good area regardless its just that the travel into the city is so tedious everyday.
Do we want a sea change? Ian and I have been taking about getting away from Sydney. The cost of living, the lifestyle, the mortgages and everyday living expenses are ridiculous in Sydney. We complain but we don't do anything about it and maybe its time we did. Time we moved to some place that isn't so expensive. The con would be that we won't have support people around us and potentially salaries wont be as competitive as the salaries in Sydney.
