Loan Finance

Viewing 3 posts - 1 through 3 (of 3 total)

Fudge111Broz00
Participant
@fudge111broz00
Join Date: 2003
Post Count: 245
September 25, 2003 - 2:14 am
Hi all,
I am a very young future investor, I am 20 years old and studying Accounting at RMIT. I have a casual job at the local supermarket making around $200 a week.
I currently have around $10,000 in the bank and Broz00 has around $2500. We could quite easily invest in a property of value $50-$60k with a 10% deposit.
My question is will the banks be willing to finance this investment given that it will be a positive cflow investment which the rental income will pay the weekly repayments for us.
Our current status is that I have the part-time job at the supermarket. I am also getting a second job soon which will hopefully bring me up to around $350 a week.
Broz00 has centrelink payments while living away from home to study aswell, and while she doesn’t currently have an income she does cherry picking over the summer where she earns approx $3000. She will then get a casual job next year too.
Do any of you guys think we could be eligable for a loan of around the 45k mark to finance our first investment property?
Thanks everyone, hope to hear from you soon!
Fudge111[]
scubar
Member
@scubar
Join Date: 2003
Post Count: 4
September 25, 2003 - 2:24 am
Fudge
It really depends on a number of things, the lender, the location, the type of property. As your income is low and your partners income is not stable you may find may find that the bank will only lend 70-80%, I would recommend talking to a mortgage broker about your options
Cheers
SC
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
September 25, 2003 - 4:52 am
Hi Fudge
Mortgage insurers will have to approve all loans over 80%. And they have area restictions, ie only capital cities and major regioanl centres will be accepted. Your $50,000 property is probably not in one of these areas (send me some postcodes to check), so you may need at least 20% deposit.
If you are permanent part time for at least 6 months, you should be OK. if it is just casual, you may have some problems. It would help if youhave been there for 2 years and show consistant income. Maybe they could change you to part time if that was the case.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au