Where to buy my first home

If a good saver looks slightly further out, he should find an affordable property that suits his needs

NAME: David Purdie

STATUS: First home buyer.

QUESTIONS: What are the affordable, up-and-coming suburbs of Brisbane where I can buy a house for $450,000 to $500,000?

ANSWERS: Buy a freestanding house situated in an area that can provide community and amenity and cater for a good lifestyle. There are some fabulous suburbs in your price bracket such as Chermside, Zillmere and Banyo. Keep your money in cash and term deposits as you will buy a property in a year or so. Keep an eye out for the passing of the government’s legislation to allow first home buyers to save for a deposit within their super fund – the First Home Super Saver Scheme – which could be financially beneficial.

David Purdie is on track to have a 20% deposit for a house in Brisbane by early next year. The 27-year-old, who will receive his permanent residency at the end of the year, has a good full-time job in technology sales. He is a keen saver who keeps his expenses low and doesn’t have any debt.

David would like to buy a property, preferably a house, that is within a 10-kilometre radius of the centre of Brisbane in the $450,000 to $500,000 price bracket. He wants a minimum of two bedrooms and will live in it. He is prepared to buy a fixer-upper but not a dump.

But the Brisbane property market – particularly apartments – is patchy. Apartments are under pressure from an oversupply. If David avoids buying an apartment, what sort of house should he buy? What are the up-and-coming Brisbane suburbs that he can afford?

What sort of annual growth (or over, say, a decade) is reasonable to expect in the Brisbane market?

David has $10,000 invested in an exchange traded fund, Vanguard Australian Shares Index, which tracks the S&P/ASX 300. He would like to buy the Vanguard Australian Property Securities Index ETF. “My knowledge of investing is quite low,” he says. “My question is where should I put my money? Should I continue investing in shares until I can buy a property, increase super or perhaps something else?”

David has all his insurance organised, with life, TPD and salary continuance cover. He is in an IOOF super fund and wants to bring out his UK pension, then merge it with his Australian pension. Is there any advice on how to do this as the rules have recently changed?

Should I continue investing in shares until I buy, or increase super?”