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Csc1980

Is it a good idea to buying a house in rural Queensland?

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Hi everyone,

 

Hope I could get some advices here.

 

Me and my partner currently reside in rural Queensland ( Rockhampton) and plan to stay for 2 years then moving to Brisbane or Gold Coast. The rental in Rockhamptonwe are paying is 300 per week.

 

Here I have some questions want to ask,

 

1. Is it a good idea buying a average condition house in Rockhampton while we are staying here for two years? The house we are looking for is around 200k, it turns out it's probably cheaper to pay the mortgage than rent. However, we have discussed with several brokers, the answers we received is banks don't like to deal with rural properties due to " high risk"

 

2. Our original plan was if we brought a house here, when the time comes we need to move back to big cities then we can buy a house in Brisbane straight away while we sell the house in Rocky. ( our assumption is it should be easier to get a loan because we have proof to show banks we have a property and good credit on payments.)

 

Is it possible?

 

Please advise, thanks

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With the costs associated with buying and selling I wouldn’t bother for 2 years.  The only way it makes sense is if you think prices will rise significantly in that time or you plan to rent it out when you leave.

And don’t forget that although the rent is high, once you own you also pay rates, higher water bills, more insurance and all maintenance.

Edited by rammygirl
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So many wineries ......so little time :yes:

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13 minutes ago, Csc1980 said:

 

Hi everyone,

 

Hope I could get some advices here.

 

Me and my partner currently reside in rural Queensland ( Rockhampton) and plan to stay for 2 years then moving to Brisbane or Gold Coast. The rental in Rockhamptonwe are paying is 300 per week.

 

Here I have some questions want to ask,

 

1. Is it a good idea buying a average condition house in Rockhampton while we are staying here for two years? The house we are looking for is around 200k, it turns out it's probably cheaper to pay the mortgage than rent. However, we have discussed with several brokers, the answers we received is banks don't like to deal with rural properties due to " high risk"

 

2. Our original plan was if we brought a house here, when the time comes we need to move back to big cities then we can buy a house in Brisbane straight away while we sell the house in Rocky. ( our assumption is it should be easier to get a loan because we have proof to show banks we have a property and good credit on payments.)

 

Is it possible?

 

Please advise, thanksemoji4.png

In my view buying a property with a view to sell it in 2 years is never a good idea unless you are speculating that property values in that area will increase dramatically in that time (unlikely in Rockhampton I imagine).

The costs associated with buying and selling (and the stress involved in these processes) would very likely exceed the rent that you are currently paying.

In my life I have bought just 3 homes.  The first I owned for 15 years, the second was for 7 (but sold in order to emigrate) and we bought our current Queensland home when we arrived 4 years ago and do not intend to move again for at least another 6 years, probably many more.

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31 minutes ago, Csc1980 said:

 

Hi everyone,

 

Hope I could get some advices here.

 

Me and my partner currently reside in rural Queensland ( Rockhampton) and plan to stay for 2 years then moving to Brisbane or Gold Coast. The rental in Rockhamptonwe are paying is 300 per week.

 

Here I have some questions want to ask,

 

1. Is it a good idea buying a average condition house in Rockhampton while we are staying here for two years? The house we are looking for is around 200k, it turns out it's probably cheaper to pay the mortgage than rent. However, we have discussed with several brokers, the answers we received is banks don't like to deal with rural properties due to " high risk"

 

2. Our original plan was if we brought a house here, when the time comes we need to move back to big cities then we can buy a house in Brisbane straight away while we sell the house in Rocky. ( our assumption is it should be easier to get a loan because we have proof to show banks we have a property and good credit on payments.)

 

Is it possible?

 

Please advise, thanksemoji4.png

You can always keep it as an investment property

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But it means me and my partner gonna use up first home buyer stamp duty fee, is it worth it?

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In your calculations that a mortgage is "probably cheaper than rent" have you included the extra costs such as council rates, water rates (if applicable), building insurance etc?  If brokers are telling you that banks don't like lending for rural properties do you know if you can even get a mortgage at all?   I imagine banks would be even more reluctant in drought declared areas (such as Rocky) at the moment.  And  are you prepared for not being able to sell quickly when you move to a city and maybe not being able to buy another house "straight away"?   

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4 hours ago, Csc1980 said:

But it means me and my partner gonna use up first home buyer stamp duty fee, is it worth it?

It really depends on what is happening to house prices in rocky ATM.

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Is it a good idea rent the house out through real estate when we move out? Is it worth to do it?

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No one on PIO could tell you if it would be worth doing.  It would depend on your personal financial situation at the time,  whether there was a rental demand for the property,  the relative value of the rental income compared to the cost of the mortgage, real estate management fees, other ownership costs etc.  plus your tax situation.   Only you would know those things  when the time came to move out.

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