Hi guys. I’m new to this so I am still researching. I was wondering what the minimum amount of savings was necessary to get into property. I read different options for those with low savings. I am interested in what some of you started with when buying your first property.
Thanks
Josh
I think it is a matter of creativity.
If you manage to flip a property, you can do it with $0.00 cash in. Or if you can agree on vendor finance, again you can do it with little cash (you may need the closing costs).
On the other end if you want to go the conventional way, you need whatever % (normally 20% without MI [morgage insurance]) of the purchase price the bank requires plus all the closing/improvement costs.
It all depends on your skill and experience levels. Nothing is impossible, but it is important that you always have a fallback position if things do not work out as you hoped.Hi,
Just a quick question about mortage insurance: How is the amount of mortgage insurance you pay worked? i.e. Will is be less if you are borrowing 90% as opposed to say 85%?[suave2]
Cheers
PaulHi Paul
No the lower the LVR the lower the LMI premium.
Also the LMI premiums maybe slightly higher for a interest only loan over a P & I loan.
In saying this each lender has a different LMI scale charge so a good MB will shop around and see what he can find for you.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
