I know that I am guilty of procrastination but with the limited finances that my wife and I have I am still quite challenged to know HOW to look or find properties to buy to start our journey that need – “little or no money down” HELP ![blink]
In the meantime, start saving, and when you figure it out, let us know would you?
Yes having no money is a bit of a problem! It can be gotten around though.
<the following comments refer to a deleted illinformed comment by another poster. No it is not Terry going bananas [exhappy] – derek>
I am not sure what you mean by buy a positive geared property and use the equity. What equity? These properties often (but not always) have low grow, so it may take a very long time to build up any equity. You usually only have equity initially if you put in a large deposit or buy way under market value.
I have never seen a 100% low doc or a no doc. a No doc would be a max of 85% LVR on a good property.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[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
Hi Stephan,
Read through the past few newsletters I have written (www.propertyinvestng.com/backissues) as I have recently written extensively about nothing down deals over two issues (Dec 04 and Jan 05).
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Yes, no money down deals are possible.
Are they easy to get? Definitely not (well, not the ones that rely on working something out with the vendor!).
Most Australian vendors and their agents only know one way to sell their property, and they’re not always keen to deviate from that.
However with the recent softening of the market, you may find vendors more willing to listen to something a bit different.
Be prepared to strike out a lot of times though!
To some extent it’s a numbers game – if you keep putting offers, somewhere along the line one or more of them will get accepted.
But make sure you have your bank finance lined up FIRST, and that they’re okay with you doing whatever it is you’re planning to do (ie vendor leaving 20% as a 2nd mortgage).Keep smiling
Felicity
Stephan,
There are some good loan products that offer 100% finance, but only for PPOR.
Regards
AlistairI am also very new at this, and dont have a lot of spare $$. Concentrate on properties under $60,000 you can type in a search on properties up to a certain price in realestate.com. I have come accross a few so far, but make sure you work out if they are positive cash flow and try to get them already tenanted, this will reduce risk and you can offer a much smaller deposit too.
Regards, veronicabridges.Stephan,
If you have no money (or equity) and you have no clue as to find properties (as per your post), then perhaps you need to get some initial advice, or at least read as much as you can before you venture into property.
the state of the market is flat right now- take a look at neil jenman’s website to check out some of the losses people have made in real estate lately on resale- some have lost about 110,000 on what they bought the property for before! The site is: jenman.com.au Given those losses (they are only examples, but enough to make one cautious… before you run into investing, make sure you read all you can, and try and find examples of people making money NOW- in this market- and not those who discuss incredible gains over the past few years- let’s face it… anyone who had a shack a few years ago would have made money… but now- well, it’s a harder game, and one needs to be a little creative- or do that most unsexy of things- pay it off!
I don’t think there’s any rush to invest right now- but having money at the ready for a good deal is always a savvy thing to do.
kay henry
Stephen,
Another option is to use OPM (other peoples money), suggest you read Steve McKnight’s Feb newsletter, has great suggestion to raise money.Before reading the article suggest implementing a budget and start saving saving saving, once you get started everything will start to flow naturally.
Hope this is of some assistance?
Cheers
GeoffB
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