I am a first homebuyer actively looking to buy a property in the first quarter of 2009. I have a rather complicated question (at least for me). I am an Australian citizen, although my family and I plan to move back to my native country in another three years' time.

The big question is: what should I do so that the property I own here has 'rental returns' that cover at least 60% of the mortgage repayments? Also,what type of property would be the best to buy? I am oscillating between a townhouse or a house, with no specific area of interest.

Could you throw some light on how to go forward with this?

Regards, Anbu

We have enlisted the help of personal mortgage advisor, Miriam Agnos from Smartline, to explain a few things in regards to your query.

"As far as your rental return goes,you simply need to ensure that your borrowings are low enough to ensure the rental will cover 60% of the repayment. I'm not sure which state you are in, but in the current market, that should not be an issue.

I would recommend you see a good mortgage broker, have them calculate your borrowing capacity and then work from there. Between the time of purchase and your departure for overseas you may wish to consider fixing your interest rate to
ensure your rental return remains stable.

I would also recommend you employ a property manager who is local to your property to handle any issues with the property while you are overseas. You may also want to consider buying a strata or community title property as this will reduce your overheads and a lot of the maintenance will be covered by the owners corporation or strata management company for your building.  Good luck with your first home purchase!

You are certainly enteringthe market at a very favourable time for
buyers and your investment should pay off very well for you.”