Hey all! I have read a lot about IP's but am yet to purchase my first one. I have a HELP debt currently at 20K and is going to rise to 100K in 5 years time by the time I finish my degree at uni. What should be my plan to get into the Property game? What are my chances in obtaining a loan to invest in property? I have casual employment and am 20 years old.
Also, would it be more fruitful to invest in alternative assets such as car parks, strata titles, etc?
Thanx all!
Hi
When i recently went for my first loan HECS/HELP debt was not even considered. I mentioned it to the broker and he said it wasn't a concern. What they will look at is your income for serviceability of the loan, employment history, other debt-Credit Card limit (doesn't matter how much you actually owe). Although my initial loan was for my PPOR so i am not quite sure how they will take into account income from the IP. But you will still need to consider vacancy rates and things like that.
I'm sure other ppl here will be able to help out a bit more.
Great to hear you thinking starting so early.
Having never had a student loan myself, I'm no expert…But… I have been for many Property/Home Loan applications over the years. I would have thought that most institutions/brokers/advisers Would take a HECS debt (with the ATO) into account when assessing your serviceability. I would be interested to hear what your financial advisor and bank would have to say.Cheers
HutchWhat degree are you doing that will cost $100k??????????????? Medicine?
Nah commerce/law and it goes for 5.5 years at about $20K a year! Im starting to wonder if I should defer soon to have a much smaller debt to buy my first IP. Ive never had a credit card in my life so this HECS debt is my only concern?
So Ive contacted a broker from ANZ and he said it did not matter that I had a HELP debt currently at about $20k …. I want to buy my first IP with another mate who is in the same position. However I am not sure if this is the right way to go as my HELP debt is increasing by the year as long as I keep going to uni every day. Are there any financial advisers out there who could give me some advice?
Thanx heaps
You know if you become a full time property investor you will never have to pay off that hecs debt.
Repayments are based on working in a job not money earned through capital appreciation in or cashflow in property. Nor is it dependent on money earned through a business for which you are a share holder and not self employed.Ours will be owed forever!!!!
That's a huge HECS debt!!!!!!!!!!!!
Good luck with that….I have found that with low doc loans, they do need to see figures, but I guess what they look at is your take home figure (ie. what is at the bottom of the payslip)…
Good luck with that….I have found that with low doc loans, they do need to see figures, but I guess what they look at is your take home figure (ie. what is at the bottom of the payslip)…You must be logged in to reply to this topic. If you don't have an account, you can register here.
