Hi,
I have a friend, mother and daughter who want to get into IP. Problem is they don’t have a PPOR and thus rent. I would expect they could attain a combined income of about $60,000. I expect they could save about $15,000 between them per year if they pool their resources.
Thus, I have suggested they look at rural positive cash flow properties.But how would the banks view their situation with regard to lending ? Say they wanted to borrow say $80,000 to buy their first IP. I was hoping, if they found a good condition property with positive cash flow, this may be a possibility that the banks may look favourably upon.
Your creative thoughts welcome.
Thanks
007hi 007
i think they would be able to get finance on a property if they are cash positive. it shouldn’t be a problem if they could meet the banks seviceablity, which should be achieved with cash pos. property. my son was able to refinance (to pay back a family member) his first invesment property and he was unemployed at the time. but because the 100pw easily covered the loan it was approved. the finance was through homepath who offer 5.65% variable and no fee and no establishment costs.
regards westanIf it is a +ve cashflow I don’t think it will be a problem with finance. If one don’t lend to them then try another until suceed.
Kind regards
Chandara
[Keep going, you’re nearly reach the end of financial freedom]007
Don’t forget the mortgage insurers won’t approve loans for many country areas, so they may have to come up with at least 20% deposit plus costs. Depends on where the property is located, larger regional towns may be ok.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
The topic ‘Getting into IP at the low end of market’ is closed to new replies.
