I want to buy my own 2 bdrm unit in the near future, so id like some advice on how to go about it. Probably would be able to put down $50,000 cash + for deposit, hopefully a hell of a lot more though. I will be going for the first home buyers grant too.

Im at home atm so no rush on buying really, i just want to do as much research as possible. I will be buying in sydney, most likely around northern beaches/north shore so its not fcking cheap by any means.

But seriously any tips on anything would be much appreciated. Cheers!

My advice would be to certainly enlist the services of a broker. While you are certain to be paying ~ $2000 for there service, they can potentially save you as much as 50-60K over 30 years on a mortgage (as we just found out).

That sort of deposit is fantastic. Shouldn't have much trouble with finance as long as you have steady income.

Lastly, its different for everyone, but my advice would be to get a fixed interest rate for the first 3 years. We're likely to see a few more increases in interest rates before it starts sinking again.

At least that way you know exactly what you are going to be paying each week/month for the first three years of paying it off (often the hardest).

u just said it yourself do as much research as u can.

being in sa i dont know anything about the NSW market but how old are the residences you are looking at, i picked up my house 40thou under because it had termite damage inthe floorboards. Being handy myself 2500 later my house is back up to standard and i just made a nice profit
look for anything u can use as a bargaining tool and unfortunately dont be afraid to be rude and/or walk away.
The only exception would be if you find the place u really know u want (and have thought and rethought it) then take a hit for it if need be

Cheers

Make sure you ask what the rates are when you buy a unit/apartment. Most of them are community titled, so you need to also think about rates you'll be paying in Strata fees - It hurts when you are living on your own in the unit/apartment and not only paying a mortgage, but the community title fees sit at around $400 a quarter...

(Strata fees include things like insurance on the apartment building, maintenance on community areas like gardens and driveways, any repairs to these areas, and agent fees).

It all adds up, so make sure you know the exact total cost of your place before you sign a contract.

When you sign the contract, if you are not sure wether or not you'll get finance, but have someone else who can possibly back you financially in case of a problem with money, sign the contract with "and/or nominees" at the end.

Also, If you are interested in a place that you saw via Open inspection, don't get into lengthy conversation at inspection - ask for an offer form and fax the agent your offer, or orgainse a meeting with the agent to make offers. Never make an offer "unconditionally" (always subject to at least a building inspection and finance), and NEVER, ever waive your conditional finance clause (meaning that you waive your right to cancel the contract if you can't borrow the money for some reason).

When you've signed a contract, get in touch with a GOOD conveyancer and make sure you stay in contact with them (and vice-versa) - you may need their legal advise if anything happens.
Talking to a broker will help you, and don't let agents bully you around.

Sorin

To save big $ pay your mortgage back on a weekly basis if you can, if your creditor wont allow it, then fortnightly. people who pay their mortgages back on a monthly basis are so stupid.

Also, Dont just rely on one single source for finance, Make sure you have some back up sources in case one falls through.

Of course, also get a good lawyer to go over the contract with you and review it.

Brokers can be good, but take their advice with a pinch of salt. One mortgage is a lot easier, and brokers often try to sell two seperate loans in order to earn the highest commission (what salesman wouldn't). They can reduce the interst to you, but can earn higher commissions as an alternative to helping you. Cash flow forecast and work out what the phsycial repayments will be, including interest and principle. Any finance student should be able to help you with it

yeah, don't borrow to the max - who wants to be paying 75% of their monthly income on a mortgage (that's about the max repayments for the amount the banks will lend).

make sure you get someone to inspect the house FULLY - preferably someone you know as there are always people just there to make money.
here also, it's worth taking the time to make sure the place is in good condition, or at least you are aware of what condition it's in.

^ i tend to disagree with not borrowing to the max.

imho, it's worth borrowing that extra $20-30k to get the place you WANT, rather than a place that WILL DO. you'll regret it later on (i did when i bought my first place, as another $10k would've nabbed us something better, but i told myself i couldn't afford it )

and yes, you may struggle with the repayments in years 1 & 2, however what happens in year 2 or 3 when you get that payrise/promotion? suddenly you've got a whole lot more $'s to play with.

note, this is only a decent option where you have a steady job.

the downside is when something unfortunate (car accident, getting fired) happens (touch wood).

- Stooge007 out

My advice is buy an investment house in Bathurst.. I know of a nice 3 bedroom on the market for a good price.

- Stooge007 out