Please excuse me if this have been covered already. I'm looking at getting my first IP ASAP and below is my current situation.
Current PPOR in Cairns: Purchase price $269000 (purchased May 2009)
Current loan owing: $256000 (with Bank of QLD)
Current savings at this stage $3000
Credit cards (all half owed): $2500 owed on eachWant to get an investment property (prefer land & house) at around Woodridge area in QLD. Looking at a mortgage of max $280000.
I would like to know if there are any brokers here who can assist with my situation above. Thanks in advance guys.
Hi Nzu
Firstly welcome to the forum and I hope you enjoy your time with us.
I am currently on holiday in the Uk until the first week of December but in saying that still working away on deals for clients.
In the current finance climate whilst a 95% LVR is still just about available the biggest issue seems to be the lack of available cash deposit or equity.
For a purchase price of circa $280,000 you will need a minimum of $14,000 plus suifficient to cover your acquisition costs so probably want to allow $30-$35,000.
If you can get around this issue and serviceability is sufficient then probably doable.
Richard Taylor | Australia's leading private lender
Thanks Rich for your help on this one. It appears that we will have to save a bit to get to a better solution. At the moment i'm on $55k & my partner is on $45k. I'm also wondering how would we go with using our PPOR for equity?
Is it possible at this stage to open LOC with my current bank and borrow 80% with a different bank? We will be using the LOC for deposit and to cover other purchase costs.
I'm also wondering how would we go with using our PPOR for equity?
What "equity" nzuvo09? You have bugger all. It looks like you already used just the FHOG on 95% LVR to get your PPOR, no stamp duty, etc. With no saving, little equity. Forget about an investment property. Save a little. Your probably need to get your LVR down to 70% (oe your loan down to ~$190K), before the banks will even look at your for pulling "equity" from your PPOR for an investment.
We just had our property valued at $300k, does this help?
Even $300K puts you at a 85% LVR. You can try, but most banks won't touch you. With your little saving history, no bank will take you to 95% on 2 properties.
PS: your $300K value is not real. It's gone up temporarily because of other first home buyers that rushed in. Wait till next year, and see where it is. (Back to $270) I suspect.
Oh, but please try. Then when the interest rates start going up, I get can more properties from the "me" generation that wants everything now!.
So lets get this straight nzuvo09. Your on a combined income of 100K/yr, yet have virtually NO saving, and a credit card debt. So effectively you have nothing, except your supposed "equity". Even for your existing hosue it sounds like you have NO savings, and used government money for all the costs. It sounds like you have payed off very little of the home loan in 6mths.
What delusion makes you believe you are even remotely in a position for an IP. Your purchase costs would be at least $15K, where are you going to get that from.
No, I'm sure the banks will be willing to lend 105% (IP cost + purchasing cost) to someone with a poor financial track record like yourself."borrow 80% with a different bank?". Your calculations are very "immaginative". 80% of a 300K property would require 60K deposit. You only have a fraction of this in "equity" to begin with. Plus purchase costs, where's your 75K coming from?
Haha, I really home some bank gives you the money. Makes it easier for me to get 3-4 more properties next year when the financially irresponsible run into financial problems next year.
Hi Nzu
Sorry i have to disagree with a lot of what Investor888 has written.
Yes 95% across 2 properties is available and doable but whether it is financially adviseable is a different matter.
I assume the valuation of $300K was a Bank valuation rather than a local agents estimation.
First thing i would do is get Bank of Qld to approve a 90% equity loan and have this sitting there as a Line of Credit to be used down the track.Then unless you can get the Vendor to fund some of the deposit i think i would buckle down and save some funds and then look to increase the LOC on the increased equity.
Wont happen overnight but will happen done properly.
Richard Taylor | Australia's leading private lender
Thanks a lot Richard for your valuable advice. I suppose we might have to save a bit to get our self to a more better position to secure an IP.
With regard to securing a 90% equity loan, do we have to open a LOC = 0.9 x $300k OR just a LOC (e.g 50k) to cover deposit & loan costs?
At the moment we thinking to limit our IP loan to $250k max and hope this will also help our serviceability when the property is rented out. What do you think of this idea Rich?With regard to securing a 90% equity loan, do we have to open a LOC = 0.9 x $300k OR just a LOC (e.g 50k) to cover deposit & loan costs?
At the moment we thinking to limit our IP loan to $250k max and hope this will also help our serviceability when the property is rented out. What do you think of this idea Rich?BoQ will merely open up a sub account for the LOC of 90% of the current valuation less existing loan amount.
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.
