Hi, I just finished school and want to but a +ve cash flow investment property but i really don’t have the money to start investing in property. i want to learn how to purchase property with the minimum amount of my own money and still have a +ve cash flow property. can any one give me any suggestings.
Thanks PriceyPricey
There are a few ways you can do this. eg>
1) get a 95% loan with mortgage insurance borrowed on top. This requires the least amount of upfront money. But you would need to be working about 6 months and show genuine savings for the deposit.
2) Borrow up to 80% of the value of the property with the deposit borrwed from family/friends. A loan like this is much easier to qualify for.
Terryw
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
Hi Pricey
One other option(if you’re looking under the 200k mark) is to do a 90% lend with the 10% borrowed from other sources such as a personal loan.
If you’ve found a great + cashflow property, you should be able to pay out the personal loan as soon as you have extra equity in the property that you can access(need a flexible mortgage here), or refinance to a lender who will do a 95% lend, providing you can handle the mortage insurance.
Just have to do what you have to get into the market in the first place, as you have to be in it to win it.
Regards
BrendonBrendon
Good point, but you still need to qualify with the added repayments for your personal loan, and you generally cannot borrow 95% on a refinance, the standard is 90% max. Royal Guardian can do a 95% refinance tho.
Terryw
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
Hi Terry
Have you investigated some of the smaller lenders that don’t use brokers?
Surely there will be a few out there? May come at a price though. All fine and well getting the 95%, but if the mortgage is not flexible, it will not help in the long run.
Our lender will only do 90% but if meant they would lose the refinance, I reckon we could push for 95%
As for the personal loan, what if you apply for it after the pre-approval at 90%?? Need a non-conforming lender who doesn’t require proof of savings.
Regards
Brendon
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