Hi
As a newbie to this forum I, like most people starting out, have a few questions. Thanks to all who have posted information so far.
I’ve just returned from an extended 4 year trip abroad. My wife will probably be returning to work in the next week or so but I am interested in getting into positive cash flow properties on a full time basis while I have the chance.
I have found a few properties that I think meet Steve’s due diligence requirements and am keen to make something happen with them.
We have about 50% equity in our house and equity built up in another rental property but not much else to use as deposits on these new investment properties.
What financial options do I have to purchase these properties? Can I go to lenders as a ‘property investor’ to borrow money or am I required to have a ‘normal’ job with regular income as security for the loan.
Any advice, opinions would be appreciated.
Thanks
MarkEven with good equity it will be a bit ore of a challenge to get finance…..note that I said a challenge not impossible. Talk to a good Mortgage broker and see what they can do. Which part of the world are you in maybe people could suggest somebody they have used with satisfaction.
It would be good to use your equity as a deposit that will stretch your money as far as possible.If thr numbers work on the properties then you really want to have volume to make it effective.
If you use another lender and drawdown on current loans then you can go and get fresh purchases using deposits from the original loans.
Hope this helps
Enjoy
AD [:0)]“Don’t dwell on reality; it will only keep you from greatness.”
-Rev. Randall R. McBride, Jr.Thanks AD.
I’m based in Brisbane so if anyone can recommend a good mortgage broker I’d love to hear from you.
Mark
Drop me a line Learner.
Enjoy
AD [:0)]“Don’t dwell on reality; it will only keep you from greatness.”
-Rev. Randall R. McBride, Jr.Hi Learner,
I am also based in Brisbane, but have not used a Mortgage Broker. All of our deals are done through the Commonwealth Bank and we tend to borrow about 105-110% of the property price (still managing to keep them cashflow positive). The bank secures the loan against the equity across all of the properties we have. I suspect that provided that you have demonstrable income from various sources to meet your living expenses and any loan commitments then you should be ok in getting finance. The lender would take a mortgage over your properties to secure them (easier if it is the same lender on all of them). Some banks (e.g. CBA and Westpac) have Wealth Creation packages that have some good side benefits for the $300 per year that you spend, such as no loan establishment fees, no loan fees, discounts on std variable and fixed interest rates, no account fees. Utilising this, we save a couple of thousand dollars a year in fees and interest amounts.
Good luck.
Hi Learner, AD & Birdman,
It’s terrific to see so many forum members in Brisbane. I’m also in Brisbane and only just starting on this adventure of property investing.I’ve watched the forums for a while now and learnt a lot, but like everyone else I have so many questions I fear I would choke the board. It would be great to hear of your experiences in the Brisbane market.
Any advice re mortgage brokers, your approaches to wrapping, anything! would be so encouraging. I look forward to hearing more from all of you.
Cheers
Ozsteve
Steve
“It’s good to see some rain”
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