Firstly, I would like to say thank-you to everybody here that contributes so much knowledge and enthusiasm!!
I really am very new to all of this, in every sense as my husband and I are emigrating in April from the UK to WA. We will be arriving with capital of approx $100k and are very keen to invest in some property. We have been madly soaking up as much info as possible from sites like this, and decided to go for it and ask some questions, risking looking very stupid!
Basically, my first question is if we were to find a positive cash flow property ( a block of 10 units)how likely is it that we would be able to get a mortgage based on the cash flow in the property alone rather than another source of cash, ie a job?
If we were to plan to live in one of the units for a time can we get the fhog for the whole property?
I have a lot more questions but maybe this will start the ball rolling, any more hints, advice, ideas would be incredibly welcome! Perhaps just what would any of you seasoned professionals do with a lump sum of $100k!
thanks in anticipation
sarahSupposedly most banks will not assess your income as a means of support if 70% of the rental cash flow covers all property expenses (including repayments).
ie: Annual Rent = $100k
Annual expenses = <$70kThis can be done by either a larger deposit each property, the use of a cash flow favoured partner, or a very good purchase!
You will only get 1 FHOG of $7000, so it doesn’t really matter whether it applies to 1 or all of them because it’s $7000 off the total anywhich way you look at it.
Also consider the risk in putting all of your eggs in the one basket if you’re new to investing, you may wish to purchase several smaller properties then use the equity in those 2 or 3 years later to purchase a block of flats.
Cheers, Leigh
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