Hi Guys & Gals,
Im new on the wagon, halfway through reading 0-130 and excited about thinking outstide of the square to reach my goal of financial independance!
The trouble is my financial position needs to be seriously tweeked to get there.
I am a single guy, renting at $155 week, bringing home around $600 a week but paying off a hefty car loan that zaps $120 a month, of which I still have about 2.5 years to go. [
]Ive pretty much accepted the fact that I will have to sell my car (hopefully get about $16,000 for it) to start from scratch and start saving seriously, around $1000 a month to go straight into my first deposit on an IP.
My problem being my employment status, Im working on a contract basis for a firm where just about every 3 months I sweat in hope it will be renewed. Ive been here 3 years and I have the best chance of becoming a permanent employee by the end of the year.
Does anyone know what the chances of me getting a loan for an IP are when I am employed on a contract basis and renting? Will the fact that Im renting seriously inhibit my ability to be granted my first loan?
Is anyone else in the Investment Property game with their primary source of income from a contract job?
Ultimately it would be supurb to not have to worry about it as my rental income will cover any loss of work.Anyone in or been in a similar situation to me?
Some advice and encouragement to take the first lifestyle change would be appreciated muchly!!Thanks [8D]
Don’t be too concerned about employment status…3 years is long enough for some lenders to consider even casual status.
It all depends on the LVR and serviceability.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I’d start ripping into that car loan – at $120 a month it isn’t too high (unless you meant $1,200), but you could make some serious headway with extra payments. Sooner you own it outright the better.
$460 gets taken out a month automatically, but yeah I pay off more when I can.
Still leaves me with about $10,000 owing but[
]I’ll get there!
$460 gets taken out a month automatically, but yeah I pay off more when I can.
Still leaves me with about $10,000 owing but[
]I’ll get there!
Hi Borgod…
I’ve been working on a contract basis for the past 6 years. I have only one IP but I purchased my PPOR nearly 3 years ago and was able to get by with a letter from the company saying that I had been employed for 3 years. The fact that it was on a casual basis was not mentioned.
Admittedly, the pay office knew why the letter was required and the bank (thankfully) didn’t require/ask for further details.
Good luck and I hope your employment does become permanent to ensure peace of mind and a bit of security.
I don’t 100% agree to get rid of the car loan.
There are two issues when it comes to borrowing. Deposit and income.
If your deposit is low then you are better off saving the money and keeping the car loan seperate.
If income is your issue then sooner the loan is gone the better.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
JoC thanks for the kind words of encouragement. I dont think my contract status will be too much of problem when I apply for a loan, but its still a concern if something bad should happen here… especially with current budget cuts etc
Mortgage Hunter my whole train of thought of getting rid of the car loan was basically to rid myself of dept, so I can solely concentrate on saving for a decent deposit. If I keep going the way I am, it would take a very long time to save for a decent deposit while simultaneously paying off the car loan.
Like Steve says in the book, I need to take that first step out of my comfort zone, ie. sell my nice carThats what Im thinking anyway.
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