Hi all,
Have been reading property investment books for about 3 months now and am 2 months off paying off all the “bad debt” in my life and saving for investment property.
My question to you learned people is – I have no money to lay down a deposit – I plan to save $18000 in the next 12 months – but I REALLY want to buy a house. What is your advice – do I study the market and get frustrated at not being able to buy or do I continue to build my knowledge base and go out there in 12 months when houses will probably be a touch more expensive?
I’m a little confused! Your advice would be much appreciated.
Electric
You need to think about sourcing a deposit.
Can you borrow privately?
Do you have family who has property you can borrow against?
There are more ways than this!
We can also find 100% lends but you will still need 3%+ savings for fees.
95% lends are possible with the LMI being added into the loan.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
Thanks guys appreciate the advice. I don’t have any property – still live at home with mum and sisters (I’m 22). My bad debt is $1250 on a credit card and $1500 on a car. I’ve just sold my Astra and downgraded to an 85 Corolla so I’m learning the “bad debt” lessons!
I have thought about borrowing against the family home but they don’t seem too keen. If I were to take up the 3% solution is interest much more expensive?
And just one other thing – would you recommend interest only loans for long-term investments?
Electric
I am into IO for investments whilst there is any non deductible debt left.
Instead of using the family home – set up a small facility or a top up to an existing mortgage to allow you a 20% deposit plus costs.
Then source a mortgage elsewhere.
This means the two properties aren’t tied and there is less exposure to the family home.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
<<<<<What is your advice – do I study the market and get frustrated at not being able to buy or do I continue to build my knowledge base and go out there in 12 months when houses will probably be a touch more expensive?>>>>>
As I am not a broker, my advice may be a little different. Learn what you can and invest in 12 months. I see the market easing in the next 1-2 years. Be patient and dont overcommit yourself.
To all,
I have just joined this site and have been reading the forum with interest. I have been wanting to invest in property for some time now, as I have sufficient equity in my southern Sydney home (no mortgage !!). Very difficult to know where to start, do I set up some sort of loan structure first or search for a property??
Start searching for a property. In the meantime contact a broker and check that there will be no issues with getting finance.
You obviously have the equity – is the serviceability of a loan you must check.
You might also want to check with your accountant as to the appropriate ownership structure of any investment properties.
Whilst you are doing this keep searching. The more properties you look at the better equipped you will be to recognise the right deal for you.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
Hi Retiresafe,
In addition to the points raised by Simon and Rob I believe you need to work out what sort of property investor you are.
Largely you will fall into a cashflow or growth investor (or combination thereof) and as such this decision, and your plans along the way, how you intend using property gains (income and/or growth) in the future will determine where you start looking and what sort of property best suits you needs.
I belive an indication of your current borrowing capacity and discussions about purchasing structures are fundamental piecesof information – take a little time to talk to qualified experts and get these foundation right and yoou’ll improve your chances of future success.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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