Hi all.
My question is this, If you only have deposit for one property, say about 10k, how can you buy multiple properties? Keeping in mind that I always want to be cashflow positive, and I dont want the lenders to say no to me. I know that Steve likes to have 20% deposit for his properties, so how can I keep borrowing, and keep the bank manager smiling?Hi two years,
It would be tricky (but not impossible) to buy multiple properties with just $10k as deposit immediately. If you could buy a house substantially lower than valuation (distress sale or similar) and then get a bank valuation at real value, you could in theory access funds for a second purchase.
But otherwise the only cure will be time – you paying off the mortage as often as you can combined with the slow increase in equity. Line your nick-name, two years should do it!Best wishes
Swampy30
I too think it would be very hard. it would be hard just to buy one with such a low deposit. On a 95% loan you would still need about 10% of the cost as deposit (5% for costs). So you would have to purchase a property valued $100,000 or less.
The only way to keep borrowing is to come up with further deposits. Liek swampy said you can buy under value and then increase the loan, or:
– renovations to increase the equity,
– sell an option on the property to
– wrap it
– etcTerryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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