Sorry just put that title there so you would read my post[devilish]he he!
Help me out here i’m confused. There are so many posts about people having to save for eternity just for their fist deposit. Yet there are numerous posts of people racking up a few IPs in a matter of months. How do they do it?. Is it simply a matter of finding a +ve property and showing the relevant figures to the bank? Assuming you can prove a vacancy period every now and then wouldn’t cripple you.
Is it this simple once you get going??Work smarter, not harder!.
Hi
And yes its just that simple!
BUT
find a +ve cashflow property
convince the bank to lend on it
plus numerous othersThese are the Tricks you need to master
Good luck
and keep reading this forumrgds
CobraOriginally posted by Cremin:Sorry just put that title there so you would read my post[devilish]he he!
Help me out here i’m confused. There are so many posts about people having to save for eternity just for their fist deposit. Yet there are numerous posts of people racking up a few IPs in a matter of months. How do they do it?.By doing one or more of the following:
1. Saving 30-40% of income (not the 10% often recommended)
2. High (90%+) LVRs, meaning that only small deposits are required
3. Finding the deposit by selling shares or managed fund investments
4. Using the equity in your PPOR (or other IP) to fund the deposit
5. And, more adventurously, ‘No money down deals’ or vendor financeRegards, Peter
Or asking parents for a loan of cash, or a loan of their equity for a short time until you pay it back……
Some people have even been known to get a personal loan to cover their deposit…..
Cheers
Meli love doing no money down deals. i love the idea of not using my own money. unfortunetly eventually you can run out of equity. so i save save save for a couple of months then go looking for ips again.
cheers
shaunLead, Follow or get out of the bloody way
Awesome Q!
I have been wondering that same thing myself read myself silly but most books start off by assuming the reader has one or more proprties. Having some equity in those, etc. My way into it was to use Mortgage insurance (ouch – expensive way) and the FHOG (love these Abrevs don’t know what most of them mean as yet but I’m working on it! FHOG = first home owners grant for those out there that are 2 affraid 2 ask).
Can some one tell me please what PPOR and POR means?[grad]
CheersC@34
PPOR- Principal Place of Residence
POR – Place of ResidenceThanks,
LuckyoneEquity Mate !!
just rackin up my posts[grad]
hehe good comment Wallflower
Altho SOME people seem to post just to get their posts up… maybe the website should log not only the NUMBER of posts, but the number of INTELLIGENT and USEFUL posts
hehe that would catch a few people out!Woohoo! I just added one more post to my name… haha
Luke
[cap]Cremin,
Yes, it’s amazing what some people can do… and what some people SAY they can do. Hang around long enough and you’ll see that things are not all they seem sometimes (oops- that’s mysterious!)
Cremin- there are those who still have some difficulties. Someone said they have a 90-100k income and still find it hard to lend, so some might make it seem easier than it actually is. To answer your question, for the many people on here that I have correspondence with, we all find property *exciting* but not necessarily *simple*. That’s my answer, I am sure others will tell you it’s as simple as getting up in the morning.
Again, with reference to finance… some wrappers on here have to borrow money from others to get the deposit together for the wrap; some pozz cashflow people still struggle to get finance (read Brenda Irwin’s article in API about how it isn’t easy to continually get finance); and yet others- with no jobs or part-time jobs say finance never has been or will be a problem. Go figure- in a forum such as this, you will get all manner of experiences and personalities. You just godda do what we’ve all had to do- work out what’s rot and what’s not.
kay henry
Thats is so true. Good points. Its not easy, but can be fun and very rewarding… Im learning about the word “patience” too hehe
Luke [cap]
Originally posted by kay henry:Yes, it’s amazing what some people can do… and what some people SAY they can do.
And never be put off by believing you CAN’T do.
Remember Henry Ford’s quote ‘whether you believe you can or you believe you can’t you are right!’
The only way to actually do things is to go do them….
Cheers,
Aceyducey
ok starting out all you can afford is what you buy, cheapie properties. So if you get afew then a few more and they work coz they have the cashflow or close to it for your budget to cope, stay there and dont be greedy. We have lots of small properties and like it that way.
Buy 1 x $500k property and you have less rent and 1 big risk, 5 x $100k gives you 5 different locations, less risk per property and if a crash happens which is affected first, certainly not the entry level properties. More rentable so lower vacancy rates and a more sustainable and consistent growth. Go get some play toys.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
hi DD
i’m with you on that one the lower end is definatley where the money is to be made. and i feel less risk. Most property managers i speek to say it is the cheaper homes that rent out quickly while the top end of Town can be slow.
melbear is right also , sometimes you just have to find the money anyway you can, even ask parent, but be sure you know what your doing. the last thing you want to do is hurt those who love you.regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Hi Cremin,
There is a simple way to everything – you just have to think outside the square. That’s what I did and ask the lender a thousand questions to find me a way to get the loan.
I managed to get my first property when I was earning a low income as a casual worker. HOW? Easy – I showed the bank the rental income from the property and since it was +CF, it was exceptionally good rent. The bank takes this into consideration but you have to tell and show them there is a lease contract on the property of which the rental will pay for all the loan and more. The bank will take 80% of the rental income on top of your income as serviceability to repay the loan.
Kind Regards,
George.“If You never never ask, you’ll never never know”
Thanks for all the replies everyone.[cap]
Work smarter, not harder!.
geo- well done :o) It is possible to get one IP on a low income, maybe even a few :o)) geo, you don’t have to have a lease contract on hte place YET to purchase it- just a letter from a RE stating it’s expected market rental value.
kay henry
hehe that would catch a few people out!
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