What are my chances...? - PropertyInvesting.com

Viewing 4 posts - 1 through 4 (of 4 total)

Spanky
Member
@spanky
Join Date: 2004
Post Count: 102
November 30, 2004 - 8:41 am
Hi all,
I have been interested in buying a property in my area asking $161k for a while now and cannot get finance due to my income status. I’ve now heard many investors say that bargain deals appear every 2 weeks or so, and I believe I just viewed one of them today!
Can anyone tell me what my chances are to borrow $50k, rather than $150k? This is a much lower priced property, I know, but as a result, my deposit would become a much larger percentage of the purchase price. i.e., I would have more “skin in the deal”. If any of the mortgage brokers would like some more specific info, please PM me.
Thanks again for your input and help.
Spank
Age doesn’t negate effort – you can never be too young or too old.
redwing
Participant
@redwing
Join Date: 2003
Post Count: 2,733
November 30, 2004 - 3:00 pm
Spanky,
How about purchasing a cheap PPOR, rent out the spare rooms to friends, get the FHOG, add your deposit etc..do the place up over time…
Conversely look at other means of investing aka Still in School to uild up your funds..
You’ll get there, and be all the better for it ue to the effort..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator
Spanky
Member
@spanky
Join Date: 2004
Post Count: 102
December 1, 2004 - 12:12 am
The place I’m looking at is asking 65,000 – it has been renting for $100pw. I would move into it for the first 6 months of ownership – basically doing what you said redwing. then I might be able to rent it for $130 or so.
Thanks heaps – I hope I can contribute more soon, rather than asking of others. I’ll keep you posted as to how I go.
Off to see the mortgage broker…
Age doesn’t negate effort – you can never be too young or too old.
xulder
Member
@xulder
Join Date: 2004
Post Count: 5
December 2, 2004 - 4:45 am
Spanky,
There are loan products out there which are flexible to assist individuals in your situation. Some of these are lo-doc and pure-asset lends.
The LVR (loan to value ratio) will vary depending on the product, from 65%-80%. Hence, a larger deposit is required to cover the shortfall.
In addition some of these are very flexible any allow you to utelise your cashflow to reduce the interest costs charged from the bank. Therefore, minimise the cost of your loan and build more equity again faster and buy more properties.
Hopefully, this helps.
Regards,
David Do
[email protected]