I am interested in buying a rural investment property for my in laws but I do not have any spare cash. How can I buy a property with no money? They would be long term tennants. I am on the highest tax bracket and would negative gear this property while I raise cash for some positive cashflow properties. Where is the best place to research a broker/finance?
Gemma,
Do you have equity in other property or do your in laws have cash or equity?
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I forgot to mention that I have approx 80k equity in my house
Hi Gemmagirl,
You could withdraw the equity and use this as a deposit on your next IP,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Emmagirl,
We bought 6 properties with no cash at all. The only one that we had to put a deposit on was the first one. You say you have about 80k in equity, you are laughing. WE borrowed about 110% on each house that we purchased, which covered solicitors, stampduty etc. When it comes to the deposit, you can get a deposit insurance that your broker or your bank can organise, or we just got an overdraft on our everyday bank account and overdrew the deposit for 30 days until settlement, it cost us a couple of hundred dollars in interest. The last two houses that we bought, we just asked the realestate agents to forfiet the deposit, and pay the full amount at settlement. They allowed this, but we knew them….that might have made a difference……but it cant hurt to ask, they can only say no. There are other ways of purchasing with no cash, such as vendor finance….ask the vendor if you can pay 80% now and the balance of 20% in 2 years….offer them more interest than a bank would on the 20% so it is appealing to them as well ( win win situation)……refinance in 2 years, the equity that should have been gained in two years should allow this, provided you have not overpaid at the start! But you will probably need to pay the vendor their asking price for them to agree to this type of sale. Again, they might say “no” because of their own circumstances….they may be buying elsewhere, and need the money, so dont get offended if they say no to this option…..Buy the way, it takes some guts to ask for this type of deal, I was terrified……at the worst, they can say “no”……but they’ll never say “yes” if you dont ask!!!!
Hope this helps.lj
From my experiences it is not wise to use a mortgage broker as the one I used was useless (Aussie Home Loans). I would recommend going into the banks and talking to their financial advisers. They are helpful and it puts little restriction on your choice. The banks want your business so they will go that extra mile to get it.
fabulous post larelle, keep em coming!!
cheers-
miniGemma,
Looks like Larelle has pretty well given you the advice I would have typed out. Thanks Larelle!
Basically that $80K equity can be used as 20% deposits plus costs and then you source 80% lends with stand alone mortgages.
You seem to be in a good position.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
