Hi there. this is my first post to the forum. I am a 32 yesr old male from New Zealand, who has been in Australia for 3 years, now living in Melbourne, who has been a little slow to discover the secrets of the successful and financially independant. I recently decided enough was enough, and am trying to embark on the process of educating myself on the advantages of property ownership.
I am researching whether to purchase my first home, or purchase an investment property. Obviously, there are inherent advantages and disadvantages in both situations, but my concern is two-fold. Upon arriving in Australia, I needed to get a vehicle urgently. The only way I could get finance at the time, was to take a temporary $5000 overdraft (which I knew at the time, as did my KIND bank manager) that I could never repay on time. Subsequently, I defaulted on the payment of this O/D, and had to pay the debt off over a period of several months. This has obviously left me with a bad mark on my credit report. Also, in repaying the loan for this vehicle, I was made redundant at one stage, and although I had unemployment insurance, the insurance company took a long time to pay-out, and this has left me with a rating of a ‘slow-payer’ with the finance company.
I am lost in the mire of wondering how the heck I am EVER going to get finance for a property. And, assuming some miracle of good fortune, that I am able to get finance, I am clueless as to whether to buy my first home (thus taking advantage of the FHOG), or buy an investment property.
I would be forever grateful if someone could give me some advice as to where to start?
(I am now fulltime employed again, and have been for a little over a year, and have a business partner who has good credit, who is willing to partner with me to get a property on a 50/50 basis)
Thanks in advance, Paul
Hi, Paul.
All is not lost. As long as you only have/had defaults, and were not made bankrupt, then you can find a lender who will help you out. You will have to wear a higher rate, but it’s still a start.
Why don’t you post your email address, along with your city, and I’m sure that one of the many finance brokers who contribute to this site will contact you.
The best thing you can do is to ask for help.
Go get ’em[
]Hilary
Thank you so very, very much. It’s often the simplest answers that are the best! I have never been made bankrupt, and have really tied down my expenses and discretionary spending, and am doing a WHOLE LOT of overtime at work in order to save the deposit, and get the ball rolling. I have heard that there are brokers available, and I am willing to wear the higher interest rate, to get a start in what is surely the key to my financial freedom.
As Hilary mentioned above, if there is anyone out there that can help me assess my situation, I love to hear from you at [email protected]
Kindest regards
PaulHey, Paul.
Nice to hear you are trying so hard – I’m sure you will make a go of it.
But, you forgot to mention what city you are in – just so that the closest broker can help?[]Hi Paul
My two cents worth on your dilema.
An answer may lie in this: I once read a book (the name of which deserts me now. Publised in 1936) but one of the crieria for getting rich was determination.(sufficient determination provides the how to) One of the insights from this book that may relate to you is that if you choose to buy an investment property first as apposed to a home to live then you gain knowledge and skills which you will not other wise obtain.
The author gave an example of millionairs. ie it’s not the million so much as it is the knowledge and skills one gains that making that million provides. Perhaps this insight explains why millionairs tend to comment that it’s the first million that is the most difficult to make.
have a safe day.
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