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Peter
The unit is single story strata, in a block of 4 in Ringwood, Vic.
He tried mortgage brokers to start with but the interest rate was too high. So because time was running out to get finance approved he logged on the Homepath internet site and did all the loan applications and approval etc over the internet.( Homepath is part of the Commonwealth Bank I think)
All correspondence was done via the phone and express post. The interest rate is 5.65%, no establishment fees and excellent conditions.I don’t know why everyone doesn’t use them.They did send out the wrong loan contract on a few occasions so you have to read all correspondence carefully.
Mickey.[/quote]
Hi,
Your description of yourself sounds almost identical to my son except he has taken the plunge already.At 20 his first job was packing boxes but instead of buying a car he used his savings of $12,000 to buy the cheapest unit in Ringwood.(He only looked at one and was the first to make an offer) At 21 (feb this year) he used the increased equity to buy the cheapest house in Doveton with almost no cash as Homepath lent 100% plus costs. So, for a $12000 initial outlay he has $100,000 equity in less than 2yrs.
So far he has excellent tenants, an excellent agent and excellent rent. His theory was that when you buy at the very bottom it can only go up and so far this is true. And no the properties are not at demolition stage and have been greatly improved with less than $5000.They are also both +vely geared!
He has since changed jobs, has paid cash $16,000 for a car but is earning less than you.
Hope this gives you something to think about but be aware of the pitfalls of realestate investing and look, read and learn.
Reggie
