I have a question…when purchasing 1 property after another, where do you come up with the deposit…or enough equity to keep LVR’s below 80%?
In the book 0-13, Steve always has large deposits?Initially Steve did a lot of wraps, so he was getting deposits off his wrappees which helped him in purchasing the next one etc.
Dave also continued to work as an accountant, thus earning more money to go towards their deposits.
Unless you have some income like that, or explosive growth, be happier with a much slower progress than Steve’s
]Cheers
Melahh I see, for a moment there my hopes were up
There is no easier answer. A combination of hard work/savings and capital growth. Buying undervalued property and/or adding value in a rising market all helps.
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
If you have the good fortune (the harder you work the luckier you get) to locate and buy a property which you can more or less instantly flip at a profit then you will produce some income which will go a long way towards establishing a higher deposit for the one you decide to keep.
At other times the vendor may be prepared to lend you a deposit via an unregistered mortgage (which the lender therefore wouldn’t know about unless you tell them about it).
However, not disclosing relevant facts to a lender is not ethical.
I would think that, if one doesn’t quite comfortably qualify for a loan by the bank’s standards, one may place oneself in a situation where, if something goes wrong somewhere along the line, one may possibly create a financial stressful situation for oneself.
Better to avoid stress (and the consequences) and grow at a bit slower pace ?
Remember who won the race between a tortoise and the rabbit ?
Pisces
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