hi..i’m 51 yo male divorced..read 0-130 (nice read)…have 20k cash..70k equity…am debt free..i am wanting to invest…for past few months i have been off work with fractured shoulder/arm & am currently on sickness benefits..can i invest in my current situation or do i have to be back in the workforce b4 the financial institutions will talk to me..i live in north east victoria & getting “itchy feet” thankyou
Greetings Craigles, and welcome to the forum.
I would suggest you could invest now, however it depends on your true circumstances, and I don’t have enough info to say for sure, but at the end of the day it is your choice to invest or not to invest.
With $20k cash I would think you would be able to buy atleast one property possibly 2 if you were to use the potential income for rent as part of your income for your loans.
I would think using the your equity you would be able to purchase a few more, however it would be harder to purchase +ve property with 100% finance especially with the interest rates rising, but not impossible.
I hope this helps?
There many wise mortgage brokers on this forum, and im sure they would be able to answer any questions you have.
Regards Bear
Hi Craigles and welcome,
I think you would have more luck with getting a loan when you are back on the workforce. How much longer are you off? You could still do it now but not as many options.
Matt
“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Craigles,
I think the answer might be in serviceability. I think you would probably be able to *get* a loan, given that the lending authorities have a lower set of criteria for lending these days, but if you are on a benefit, will you be able to repay the loan without being solely rent reliant?
It depends on the level of risk you are willing to take on. I think property investing takes a wage to make it sustainable- at least for the first few years of the plan.
kay henry
If you are on Centrelink sickness benefits you would be able to still get a loan if your serviceability was 70%. However, if at the proposed end of your sickness benefits it is replaced with social security, ie you dont go back to your former employer you would be struggling. But…. if your sickness benefit is a Workcover benefit meaning that you go back to your former employer once all is healed you would qualify now for a loan on your former salary.
I would refrain from using the term “itchy feet” to the bank.
If you are not going to be in gainful employment at the cessation of sickness benefits it would probably be best to wait until you gain employment then use your $20k + your equity component to purchase +cf investment properties.
another avenue is to purchase one and renovate and sell to maximise more cash flow to put towards deposits on properties.Mopsy
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