True low doc loans are virtually almost gone (no financials).

I know ANZ will do it at 60% no financials, will even do PAYG lo doc!

But most are now requiring BAS statements for last 6-12 months.

Hey Corey,

Well, my thoughts are, to see a broker maybe as soon as you can…. At least they may be able to give you a general direction/goal for your savings, and laying down a game plan…. They will be up to date with lending policies and will therefore have an idea on where you should start (although policies are always changing).

I also know that there are some lenders out there that wont actually lend in NT.

Anyway, ill have a chat to my broker (he is my roommate, which is handy) for you and at least give you an idea on where to start.

Morning Corey!

No dramas, it is always good to get help/advice with a big decision like buying a house!

Some brokers charge a brokerage fee, however some actually get paid from the bank….so they wont charge you anything. (my broker doesnt charge).

Well, I said the same thing about the credit card. However, as soon as I turned 18, I applied for one for a small limit of $500, to at least establish my credit file. The file is created as soon as you apply for any form of credit with any institution, whether it be for a credit card, mortgage, personal loan etc etc.

If you like, I can pass on your details to my broker (contact number, email address)… and he can have a chat with you as per the best options for you. It is a big help, saved me running like a crazy person from bank to bank.

With the FHOG, I got it when the higher bonus was in, now it is sitting at around $10.5k (I think) in VIC, are you based in vic?

Corey, you are definitely doing the right thing in buying a house…, also you sure you don't have a family member or friend that can possibly attach their property as security, or gift you the funds to purchase?

Dave!! Do not listen to others! I am 20yrs old, and recently purchased my first IP, despite many who told me not to buy. Or who were critical of my age and said there is no way for me to buy. If others advise against, it is probably them in other words saying they wish they had the same passion!

Keep your passion going, as there is money to be made in property! Property is my opinion one of the safest avenues for investing…. shares are always fluctuating, and super is a waste of time. Property is the way to go, dont let others tell you otherwise.

I have been watching the DVD seminars of Henry Kaye, an avid melbourne property investor. The knowledge to be found is overwhelming, its great! So much to learn. Dont feel pressure, by having to earn a certain amount to go into investing…. finance? Income via "employment" will not earn or create the wealth you desire. Regardless of your current debt, there will be ways for you to obtain more finance. There are ways around loopholes! 

You should purchase enough, that in 10-20 yrs time, sell off a couple and eliminate the debt, have unencumbered properties sitting there growing in value each year! Live off this equity, living off a passive income….and maybe work a full time job for 1 month in a whole year.

Dave, keep your spirits up, listen to yourself, gain as much knowledge as you can! My roommate and I have the same passion when it comes to property investing, and looking to buy another in a month or two. We both also work in finance, so if you do have questions in regards to your earning capacity and so forth, you are more then welcome to let me know.

Wishing you the best of luck.

Natalie 

Hey Corey,

Id suggest to see a broker….

Also, if utilising FHOG, you will need to live in it for 6 months within the first 12 months of purchasing. I dont think fhog is available for straight out investment properties, pretty sure you have to live in it for at least 6 months.

20% will be good to put towards, however if you want to avoid the genuine savings rule, you want to keep the max loan at 80% of the value. Or keep about 5% savings in account for 3 months, and a lender may considering lending you 90%.

Dont worry about age, if thats a concern to you. I am 20 and recently purchased 3 months ago (with CBA), and used the fhog – and recieved about 16k towards the property (which was a massive help).  CBA also do 1 day employment.

Have you ever applied for credit before, eg. credit card etc? As this will at least establish a credit rating (credit file/CRA) for you.  I guess there are a few variables that come into play, I have a broker that is absolutely fantastic, and helped me with my loan (had I gone to a bank direct, not sure if it would have been approved!!).

You need to find any avenue that can strengthen your overall application to the lender. They would ideally like to see some form of stability, some form of credit rating, savings will also look good for you.

I hope this gives you a little grounding, I work in finance, if you have any other questions, please do ask.

Thanks,
Natalie

I'd say stick out with variable for next 6-12 months, test the waters…. and maybe look at fixing later on when this rogue rate increasing stops from RBA.

Hey Denis,

Quick peice of advice;

We go to doctors for specialised medical advice, right?
We go to solictors for specialised legal advice, right?

We should go to brokers for specialised financial advice…

As Richard said, say you walk into a bank direct, they arent exactly going to refer you to another bank with a much better suited product for you…. you are merely a number to them, they will pretty much say anything you want to hear, as long as you sign the dotted line.

You are doing the right thing by using a broker!

Good to have a renovating team ready to go;

Valuer (estimated value at time of completion, post reno)
Builder
Architect (to check over the builder)
Financier (finance ready!)

Crucial advisers to have ready. No guesswork with renos, you guess, you may lose. You would rather do your research… buy wholesale, get some expert opinions. If you research, you cant really go wrong can you?

Terry,

Are you asking the question to through another spanner in the works, or do you know the answers to that sort of question?

What are the tax implications, if Nit was to go with either option…?

Hi K,

1 bedder, inner city is certainly in demand, rental shortages are on the increase. No matter what you purchase, it should get snapped up fairly quickly.

I think you cant go wrong inner city 1 bedroom (ensuring it has a decent sized bedroom). No niche markets with this purchase, you will attract a large number of tenants, whether it be a couple, well off single, or even students – wide range. Especially, having just read that household sizes have dropped considerably from 5 to 2, thats a big drop, therefore 1 bedroom should do well.

I think if you were to invest in a 1 bedder inner city, if possibly, try and at least secure it with a carspace, obviously widens your rental market even more, having competitive advantage over those in which do not have a carspace.

Follow the market, follow the demand! (ie. rental shortgage increase, household size drop)