The only issue with that is <15km to CBD and CF+ don’t match up in Melbourne generally. There certainly is a strong population growth for Melbourne, whether this translates to the same population growth in regional areas where you might find cash flow neutral/positive is another question.

Tread carefully and always make sure you weigh up all the factors of an investment – not just the cash flow.

Rental values are generally a product of the supply and demand equation. As a roof over your head is essential, even in times of downturn there isn’t strong enough fall off in demand to create a reduction in rent. As SiteManager has mentioned aboove, of all things a negative outlook can lead to increased rental demand pushing prices UP.

This works both ways, if there’s a strong increase in supply during a boom economy – rent’s can very well crash.

Assuming you’re in Victoria, you have three days cooling off unless you specifically waived your cooling off rights. Each State has a different cooling off period and terms, ie some return the full deposit, others take 0.25% of the purchase price as a penalty etc.

Certainly possible – but a bit messy on your credit file. It’s just snowballing the issue to the future, as the deposit debt still needs to be paid back, and will be a drag on your borrowing capacity as time goes on.

The best thing to do is focus your energy on saving for your own deposit.

As always, pragmatism is needed.

I do quite like the ideology behind the “Just do it” mentality – it’s unfortunate that I see so many people throughout life who hold themselves back from taking risks in their personal, professional and financial decisions which can improve their lives.

Perhaps it needs to be adjusted slightly to “Just do it… within reason!

Hi Curtis,

Rental income, minus:

*interest (calculate at 105% of purchase price to establish the true cost of the property, as this will include financing costs of government charges)
*council rates
*water if applicable
*insurance if applicable
*strata if applicable
*letting and management fees
*maintenance

Depending on where the property is, the estimates will vary wildly. It’s best to become familiar with how much councils rates/water/insurance is within an area and use that as a rule of thumb etc. Always check strata costs and request the documents to see the current maintenance accounts + sinking fund to ensure there is enough capital to meet any future work required.

Infront of clubs?

Personally I find putters to be the best type of clients, woods the worst.

westnblue – there’s absolutely no reason to cross coll, even if its “2 or 3 properties”. It’s an unnecessary risk and provides less flexibility, just for the sake of laziness/incompetance on the point of the broker/banker.

Dan: Best thing to get started would be to understand what your lending capacity and finance structure required for you to build an investment portfolio. See a good investment based finance broker who can give you an understanding of your capabilities, and challenges you may face etc. From there you can leverage this information against your market research to see what fits, what helps you get closer to your goals, what may be too high risk/not possible at this time.

DeanCollins wrote:

really guys…?
If you cant save 20% for a deposit…..then should you really be buying now?
Or maybe you are buying too much house for what you can afford, get yourself into a starter apartment rather than median mcmansion in the perfect suburb.
you can use the equity you build after 4-5 years in the starter apartment as a deposit on your mcmansion or better still keep it as in IP and move into a step up apartment.
Cant believe you guys are professional loan brokers and really suggesting people should be taking out 95% loans based on how risky it is at the moment…….
I know this is going to take the post off topic…..but I feel someone has to be saying it.

Except there is no universal rule dictated by the functions of the universe that a 20% deposit is ‘safe’, ideal or the only responsible response.

It’s not a matter of whether someone can save a 20% deposit, anyone who can save 10% can also save a further 10% – it’s about timing. If a borrower decides they would rather cut their saving time in half and utilise LMI effectively – what’s the issue?

Tell us more about how ‘risky’ it is – and how having a nominally lower loan amount will mitigate said risks. If you’re talking about a correction (and believed this is a likely scenario), it wouldn’t be prudent to advise *anyone* to borrow or buy.

Benny: Exactly right – as with everything, work your way up the ladder. My first car wasn’t a BMW M3, my first flight wasn’t in first class – why would the first house be anything other than simple unless you have significant means. But sensationalism is so much fun for the media and readers.

• This reply was modified 9 years ago by  Corey Batt.
• This reply was modified 9 years ago by  Corey Batt.